A 7,500% Rise In Gold And Silver Miners Isn’t That Unbelievable

12 years ago, a humble Federal Reserve President mentioned it could be time for some helicopter money in the near future. Back then, everybody was laughing. Now, Ben Bernanke has the last laugh. With his visit to Japan, helicopter money is the new talk in town.

Unofficially, Bernanke advised Abe and Kuroda what helicopter money can do. It will be the next attempt in Japan to defeat deflation. Abenomics, Quantitative Easing, NIRP, … it didn’t help, so let’s try something completely absurd like helicopter money. Japan is the monetary lab of the world.

But what does this mean?

Central Banks are programmed to create inflation, so Japan will get inflation. That’s what markets are telling us right now. Especially gold and silver are front-running inflation. It’s no coincidence the gold and silver bear market ended with the introduction of negative interest rates in Japan.

So as an investor, you need some inflation protected assets. After WWII, the world experienced high inflation. Gold and silver did very good during that period. But the real winners were gold and silver miners. Let’s take a look at the Barron’s Gold Mining Index, the only index in that period.

The index bottomed at 18 only to rise to 1,350 point in the ’80. That’s a tremendous ride of 7,500%! Miners did 3 times better than the precious metals. That’s why you need gold and silver miners at the beginning of an inflation cycle.

In a minute we’ll tell you what you can expect from the miners, but first let’s take a look at gold and silver.

When you see the bigger picture, one can only see the 2016 rally is just a little bump in the road. The sector as a whole isn’t even break even yet. You can hardly take this as a new bull market. This is only the beginning.

It’s the same picture with silver.

According to Sprott Money, gold should be at $4,000 and silver above $200 an ounce:

As monetary metals, the prices of gold and silver had to reflect the insane/fraudulent/criminal increase in the U.S. monetary base. At a minimum, this would have required the price of gold to reach $4,000/oz (USD), the nominal price required to suitably reflect the dilution/debasing of the U.S. dollar. At a conservative 15:1 ratio , the price of silver would have had to rise to well over $200/oz.

So the new secular gold and silver bull market is just getting warmed up.

A new 7,500% rise in gold and silver miners isn’t that unbelievable. The HUI-index is at 270 for the moment. It all began around 100 point so if history rhymes, it could go all the way to 7,500 points.

That’s what we call OPPORTUNITY!

Don’t miss out of the huge potential that these gold and silver stocks are offering at this moment. Don’t wait for these stocks to start yielding exceptional returns, but start buying the ‘best of breed’ in this sector.