As I write this, billions of dollars in capital are fleeing paper assets and moving into hard assets.

See for yourself.

Below is a chart of the price of gold plotted against the price of the S&P 500. When gold outperforms the S&P 500, this line rises. And when the S&P 500 outperforms gold, this line falls. As you can see, after 10 years of stocks dramatically outperforming gold, the tables are about to turn. Once this ratio breaks above resistance, the door is open to a truly shocking move.

What is going on here?

What’s going on is that capital has figured out that central banks are about to commence their next major round of money printing. Europe and Japan’s economies are on the brink of recession. The U.S. economy is showing signs of duress as well, with everyone from Chipotle to Southwest Airlines to PepsiCo and even Walmart noting the American consumer is under duress.

Put simply, it’s only a matter of time before central banks are forced to panic, cutting rates and printing money by the trillions again. And this is going to ignite a truly jaw-dropping period of returns for those properly positioned for it.

Indeed, the charts for many gold miners are breaking out in MAJOR ways.

Franco Nevada (FNV)

Agnico-Eagle Mines (AEM)

The financial system is SCREAMING about what’s coming. And those investors who are properly positioned for it are making literal fortunes.

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