➡ The value of the S&P 500 is predicted to decrease by 47 times, while the value of gold mining stocks is expected to increase by the same rate. Despite the risks associated with gold mining stocks, they are considered a good investment, especially in a scenario where the dollar’s value drops significantly. This is because gold mining companies can provide dividends in the form of gold, which is essentially money. For more insights on investing in gold and silver, you can check out the author’s Patreon page.

It would take over two-and-a-half-million bowls of your old brand cereal to equal the fiber content of one bowl of super colon blow. I’m convinced. S&P 500 Index investors would say, Oh wow, look at your gold stocks. They’re like so claiming. Oh my god, look at that huge yearly candle. It’s the biggest ever. And you guys are off here from the end game investor. And today we’re going to talk about mining stocks. The rally has been huge. It’s been enormous. It’s been almost straight up, even straighter up than it was from 2008 to 2011.

The question people are asking me now is, should I sell? Is this the top? Do mining stocks have more to climb? Is this really a rally? And my answer is no, this isn’t a rally. This is a pathetic rally. It’s not really a pathetic rally. It’s a pathetic rally compared to other things. I’ll show you those charts and why the rally in gold stocks hasn’t even started yet. And how long do we have before we get to a potential top? Well, about 47 times relative to stocks. Gold mining stocks would have to climb.

By stocks, I mean the S&P. 47 times relative to the S&P 500. Mining stocks would have to climb in order for there to be even close to something like a top. So no, it hasn’t even started yet. There’s a long way to go. You could sell a little bit if you want to to lock in some dollar profits. But then again, I don’t use gold mining stocks as a vehicle to accumulate dollars. And no one is going to care about dollars. And the dollar can no longer buy any amount of gold or silver. But anyway, let’s answer the question.

Is the gold stocks rally done? My answer, not even close, not even close. And before we get to the charts, this video is brought to you by me, the endgame investor. My substack is at endgameinvestor.substack.com. Link in the description below to the corresponding post to this video. And you can buy your gold and silver at Miles Franklin. Link in the description below and mention the endgame investor. And you can take your gold and silver and store it in a dirty man safe. You use the code ENDGAME10 for 10% off your order and to support this channel.

So the first thing I want to show you is a long term chart of the BGMI. What’s the BGMI? Well, it’s the oldest gold mining index that I could find on gold charts are us. It stands for the Baron Gold Mining Index. BGMI goes back all the way to, I think, the 19th century. But this is what you want to see right now. This is the gold mining index of various gold stocks going back many, many decades. And you can see here we are at near, very near all time highs. Look at that. Look at this rally.

This is these are, I think, yearly candles. So yearly candles. We are in the best year nominally for gold stocks ever. I think this is the longest candle ever so far and we’re only in September. So we have a while to go. This could very well be the longest positive yearly candle ever for the Baron Gold Mining Index. So on this chart, if we just look at it nominally, it looks like, wow, the gold miners are really roaring, they’re really popping. It’s amazing, but no, they’re not. And I will use the rest of these charts to prove it to you.

Just to use a more familiar index, just to give you an idea of what I’m going to tell you here, is that look at the Huey. The Huey is the gold bugs index that is only around since, I think, 1996. Yes, this goes back as far as this index has existed. So in the middle of 1996, this index was compiled. You can see there was an all-time high here of about 640 something in 2011, right around the time when the last gold bull market ended in dollar terms. And you can see here, there was a nice little triangle.

I like triangles. This triangle was broken in 2024. It was established in 2011 to 2024 as a 13 year triangle. You can see there’s a nice little support over here going up since 2016. This was the gold mining stocks bottom over here. And you can see we broke through a triangle with a vengeance. With a vengeance. And we’re up to about 560 or so. But is this really a rally? No, not even close. Not even close. It would take over 30,000. This is the same index, the Huey, the gold bugs index relative to the S&P 500.

So you see here that this high indeed was an all-time high for the Huey index in 2011. At the end of the last bull market, we hit about 0.56. It looks like in the ratio of Huey to S&P 500, the higher this is, the more expensive gold mining stocks are relative to mainstream stocks, the S&P 500. We hit the low over here in 2001, which is when gold was about 254 or so at its 2001 February low. So this makes sense. You see here that there was a lot of volatility swinging in the gold mining index in the Huey.

And look at this rally that we’ve been in since 2024. You could say 2025. You want to just count over here right now. Oh, look at this nice little thing. It’s not even where we were in 2020, right? It’s not. It’s not even close. So look at this. This is the same rally relative to the S&P 500. So we see here that S&P 500 index investors would say, oh, wow, look at your gold stocks. They’re like so claiming. Oh, my God, look at that huge yearly candle. It’s the biggest ever. But like relative to just investing in the S&P 500 since 2015, when the gold bull market bottomed, yeah, this hasn’t been much of a bull market at all yet.

Not even close. Not even close by good. You got one more right there. What about the BGMI? So here we see the BGMI going back to 1935, 34, something like that. And this is the ratio of the S&P 500 versus the BGMI, the Barren Gold Mining Index, to see how this ratio has been behaving since then. So we see here, the higher this goes, this is the inverse of the other chart. This is the only chart I could find of the BGMI S&P 500 ratio on gold charts or us, I couldn’t find the inverse, which is what this chart is.

So these charts are flipped. So here, the lower you go, the worse the gold stocks are. Performing, so we see here, they were performing very, very badly in 2001, 2000, 2001, from about 1995 to 2001, gold mining stocks capitulated, they fell, they, what’s the other word, crashed, whatever you want to say. And then they went back up into 2011 over here, when the ratio was about 0.55, as we saw in the previous chart. Uh, so look at this. Uh, we see here that where we are now, we’re at 4.83, could be a little bit different right now, this is like a few days old, but you can see here, we’re right near the all time lows, the all time lows are about 7.4, 7.5, something like that in 2015, we’re not right at the lows, we’re a little bit higher than the lows, yeah, but yeah, nowhere near where we were throughout the 1940s, 1950s, 1960s, 1970s, 1980s until 1994, right? When gold stocks crashed and then rebuilt themselves and re-routed into 2011, then crashed and have been very undervalued ever since.

But the question is, what is the high? Meaning what is the low in this chart? It’s hard to see here because it’s too close to the bottom, but we can calculate it with individual data points, not here, not here so much, but right here, right here, not here or here so much right here in October, 1980, and notice that the high in gold stocks was after the January, 1980 spike in gold and silver. Here is a zoom in on the BGMI for 1980, this was the all time high. It’s about 1280 eyeballing it October, first week of October 1980.

So if you take that number, 1280 for the BGMI, the high, the all time high in the BGMI in October, 1980, 1280, go to the next chart and you see October, 1980, the first week of October, 1980, we can eyeball it. It’s about 132 for the S&P 500, 132 first week of October. So you take 132 divided it to 1280. What do you get? You get 0.103. So we have the current number of the BGMI, which is 4.83, the all time high in 1980 of gold stocks versus the S&P 500 was 0.103.

You take 4.83 divided into 0.103 and you get 47, 47, 47, 47, 47, which means the value of gold stock is going to have to rise 47 times relative to the S&P 500 and you’re asking me, well, is the S&P 500 going to stay the same? Is it going to rise? Is it going to fall? Doesn’t make a difference. The point of this ratio is to say that the purchasing power that is currently in the S&P 500, all the dollars that it’s worth, and if you were to liquidate it today and get that number that you see on your brokerage account, number of dollar number, and you’re able to buy all the stuff with all those dollars, all of that purchasing power will be sucked into gold mining stocks at a rate of about 47 times.

So the purchasing power of the S&P 500 is going to fall 47 times and the purchasing power of the BGMI of the general gold stock environment portfolio, whatever, is going to rise about 47 times. So no, the rally hasn’t started yet. Not even close. Are you convinced? I’m convinced. Am I denying that there are dangers with gold mining stocks? Of course not. There are dangers with gold mining stocks. There’s the big taking question, the great taking question. If you believe that brokerages are going to go down, there are ways to get around that.

You can buy mutual funds directly with investors that don’t go through brokerages. There are other options. Talk to more conspiratorial preppers than me. But in general, just to remind you, the reason that I invest in some gold stocks, which are not as safe as bullion, but I do invest in some gold stocks, is because in the event of an endgame where the dollar cannot purchase anything, I want companies that can pay me actual dividends in product, in money terms, and gold miners can do that because they create money itself.

And if you would like some spiritual lessons in gold and silver, check out my Patreon at Patreon.com slash in game investor for as little as $3 a month was just there to keep the rabble rousers out and those who just want to mock the issues. But I know all of us are losing our minds to a certain extent and to be spiritually prepared is important for mental health. And that’s what I try to provide with these short little weekly Patreon videos on gold and silver and spirituality. This is Ralph Ritengham, investor and I’ll see you guys probably in a few days.

I’m convinced What happened to your face? I knew it. See you, Richard. [tr:trw].

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