How Much Upside Do Gold Stocks Have Left?!

NIA perfectly predicted the current bull market in gold stocks in February 2024 when the GDXJ/GLD ratio dipped to below 0.17, which was exactly like what happened in January 2016 and March 2020 prior to gold stocks exploding.

Currently, the GDXJ/GLD ratio is back up to 0.2207, so how much upside do gold stocks have left?!

In July 2020 the GDXJ/GLD ratio peaked at 0.3463 and in August 2016 the GDXJ/GLD ratio peaked at 0.4064, which means even if this current rally ends early like in 2016 and 2020 the upside is massive.

We believe the GDXJ/GLD ratio is going back to the December 2010 high of 1.29 and it could rise much higher than that!

What does it mean for small-cap gold development companies? They have the most upside of all!

NIA's President believes Augusta Gold (TSX: G) has the most upside and will rapidly surpass its 2022 high of $2.40 and 2021 high of $3.60 in the upcoming weeks (with a potential 50%-100% gap up day coming soon), but it is actually First Mining Gold (TSX: FF) which has the strongest correlation with the GDXJ/GLD ratio:

When the GDXJ/GLD ratio peaked in mid-2020, First Mining Gold (TSX: FF) hit $0.58 per share.

When the GDXJ/GLD ratio peaked in mid-2016, First Mining Gold (TSX: FF) hit $1.31 per share.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA’s President has purchased 232,200 shares of G and may purchase more shares. NIA has received compensation from FF of US$50,000 cash for a six-month marketing contract. This message is meant for informational and educational purposes only and does not provide investment advice.