Something MAJOR is happening in the financial system today.
Gold erupted higher by as much as $85 yesterday, hitting a new all-time high of $3,601. Year to date the precious metal is up an incredible 34%.
So what? You might be thinking. Gold goes up and down all the time. Why is this rally so significant compared to others?
Gold is signaling that BAD inflation is about to hit.
Historically, stocks are an inflation hedge… to a point. The reason for this is that a small amount of inflation boosts revenues/ growth which leads to investors seeing stocks as a means of profiting from inflation.
However, once inflation reaches a certain level, operating costs are so high that profits evaporate. And that’s when BAD inflation becomes a BIG problem for stocks.
As Bill King notes, when gold outperforms stocks, it’s a major “tell” that inflation is reaching the tipping point at which it will soon become a BIG problem for stocks.
That is happening right now.
Below is a chart comparing the performance of gold to that of the S&P 500. When this line rallies, gold is outperforming stocks. And when this line falls, stocks are outperforming gold.
As you can see, gold dramatically outperformed stocks during the first quarter of 2025. Since that time, this chart has formed a bullish falling wedge formation as stocks outperform gold from April through August.
The bad news is that this chart just broke out… to the UPSIDE. This is signaling that we are entering a period in which gold once again outperforms stocks.
Put another way, the next round of inflation is coming soon. The time to prepare for this is NOW before it hits!
The time to prepare for what’s coming is NOW before it arrives.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead.
The report is titled Survive the Inflationary Storm. And it explains in very simply terms how to make inflation PAY YOU. In the last two weeks, the investments outlined in this report are already up double digits.
We are making just 100 copies available to the public.
To pick up yours, swing by:
Best Regards
Graham Summers
Chief Market Strategist