But even as the price of gold has risen in recent months, the gold miners themselves may be even larger beneficiaries of the US dollar supply shock.īelow, we’ll list 5 simple reasons the gold miners could be in for a period of massive outperformance. ![]() No wonder the price of gold is sitting near a cycle high of $1743/oz as of this writing. Indeed, the US money supply has grown by approximately 23% over the last 65 days, or about a 90% annualized rate. Rather, the steady supply of gold compared to the extraordinary growth of new money requires that the dollar value of the former must rise to keep parity with the latter. This time the boom isn’t because there are new gold reserves to be dug out of the ground. Today we may be in the early days of a different kind of gold boom. One such mining operation was in what is still known as Gold Hill, which I highly recommend visiting for a live music and BBQ event the next time you are in Colorado (COVID permitting). ![]() Nestled literally at the foot of the Rockies, its location was ideal for supplying the Colorado mining boom at that time and by 1871 a railroad had been built to connect Denver, Golden, Boulder and the mining operations directly to the West of Boulder. ![]() ![]() Its first non-native settlers established the town 1858 as a base camp for gold and silver miners. As I write this note on a dreary Friday afternoon from Boulder, CO, I am reminded of my town’s origin.
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