Gold: Ride The Lightning

"If my calculations are correct, when this baby hits 88 miles per hour you're gonna see some serious shit."

Ever since the beginning of this blog, I have been making my bullish stance on gold, silver, and precious metals known unapologetically.

At the beginning of 2024, I noted that my favorite pick for the year was gold, silver and miners. Gold was already at an all time high and I wrote:

The purpose of expanding on this idea today was to note that I still think enthusiasm for the precious metal is extraordinarily tempered and even further tempered in relation to the market's risk profile, heading into the new year.

There are many times when an asset hits an all-time high that I consider selling it. Have I already ridden the bus to the top of the mountain? Is this the point where everybody has gotten in? Is it time to sell when the herd finally catches on?

I want to make it clear that with gold, I don't think that is the case. As many of you know, it is a special asset with properties unlike anything else that, I believe, make it one of the best potential long-term or lifetime holds one can have.

So far, the pick looks prescient, with gold and miners performing better than most market indices. The VanEck Gold Miners ETF (GDX) is up 33.22% this year, gold is up about 30%, silver is up about 34% and the Global X Silver Miners ETF (SIL) is up 29.9%. This compares with the S&P 500 up 19.97% and the NASDAQ up 20.46%.

But what is to come heading into the end of the year and into 2025? Here’s a quick rundown of my thoughts.