The misery index and gold

Reagan put the high unemployment and inflation rates together during his campaign and coined the term. The misery index symbolizes a period of stagflation, the combination of economic stagnation and galloping inflation. Today, the index is making a comeback. Compare the changes in the index and the changes in the price of gold. To be blunt, there is a clear long-term correlation between the data. The period in the 1970s when the gold standard ended or similar periods in other countries such as Mexico, Zimbabwe or Venezuela shows that when the misery index went up, citizens who invested in gold kept their wealth. So, gold shone in the 1970s and during the 2008 financial crisis.

Analysts are now warning that the 1970s scenario could repeat itself. The precious metals sector would benefit from this. Not only the experts of Deutsche Bank find words of warning. After all, the debt trap and above-target inflation will lead to weakening central banks. The global economy could face a far worse situation than in the 1970s. Complete stagnation with very low growth and even higher inflation could emerge. In Venezuela, by the way, the preferred medium of exchange in some areas is now gold; stagflation has turned into hyperinflation there. So having some gold stocks in your portfolio certainly can’t hurt. For example, Fury Gold Mines or Skeena Gold.

Fury Gold Mines – https://www.youtube.com/watch?v=bfEJaSmPGxg – has several million ounces of gold in its properties, these are located in Nunavut, British Columbia and Quebec.

Skeena Resources – https://www.youtube.com/watch?v=AoDWe5aJarQ – owns the Eskay Creek (in the Golden Triangle) and Snip gold-silver mines in British Columbia and is working on recommissioning them.

Current corporate information and press releases from Fury Gold Mines (- https://www.resource-capital.ch/en/companies/fury-gold-mines-ltd/ -) and Skeena Resources (- https://www.resource-capital.ch/en/companies/skeena-resources-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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