Gold Stocks Are the Hidden Opportunity in 2024’s Bull Market

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XAU/USD News

Alphabet Inc Class A,Amazon.Com Inc,Newmont Goldcorp Corp

Commodities Analysis by Frank Holmes covering: XAU/USD, Alphabet Inc Class A, Amazon.com Inc, Newmont Goldcorp Corp. Read Frank Holmes's latest article on Investing.com

hit a new all-time high of $2,670 an ounce, continuing a remarkable rally that’s seen the precious metal gain over 27% since the start of the year. If 2024 ended today, it would mark the best year for gold since 2010, when the asset finished up nearly 30%.

The real opportunity may not be in physical gold itself or the ETFs tracking it, though; instead, I believe it’s in the deeply undervalued gold mining stocks that have yet to catch up to the price of bullion.At the heart of this gold rally is the Federal Reserve’s recent policy shift. The Fed made a decisive 50-basis-point rate cut last week, lowering the opportunity cost of holding a non-yielding asset like gold.

Despite this backdrop, many Western retail investors have been slow to embrace gold this cycles. According to a recent Bank of America study, 71% of U.S. financial advisors have little to no gold allocation, often representing less than 1% of their portfolios. It’s not just me saying this. Some of the most well-known contrarian investors are taking note. Stanley Druckenmiller, for example, made headlines when he sold off big tech stocks like Alphabet (NASDAQ:At U.S. Global Investors, we’ve always been firm believers in the potential of gold and gold mining stocks, and ouris a reflection of that belief. As the first no-load gold fund in the U.S.

 

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Gold Stocks: A Contrarian OpportunityCommodities Analysis by Frank Holmes covering: XAU/USD, Gold Futures, United States 10-Year. Read Frank Holmes's latest article on Investing.com
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