One chart shows the details of an important historical analog for gold stocks
Through many years of frustration among gold bugs due to the failure of gold stock prices to leverage the gold price in a positive way, there were very clear reasons for that failure. Reasons why it was not only logical, but probable that gold stocks would continue to under-perform vs. their product.
The primary driver to gold stock under-performance was a new era of ever more monetary (Fed) and fiscal (Government) policy meddling that began in 2001 and probably blew off in the inflationary panic of 2020. I called it the “Age of Inflation on Demand“.
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