Something MAJOR is happening in the financial system today.

Gold erupted higher by as much as $85 yesterday, hitting a new all-time high of $3,601. Year to date the precious metal is up an incredible 34%.

So what? You might be thinking. Gold goes up and down all the time. Why is this rally so significant compared to others?

Gold is signaling that BAD inflation is about to hit.

Historically, stocks are an inflation hedge… to a point. The reason for this is that a small amount of inflation boosts revenues/ growth which leads to investors seeing stocks as a means of profiting from inflation.

However, once inflation reaches a certain level, operating costs are so high that profits evaporate. And that’s when BAD inflation becomes a BIG problem for stocks.

As Bill King notes, when gold outperforms stocks, it’s a major “tell” that inflation is reaching the tipping point at which it will soon become a BIG problem for stocks.

That is happening right now.

Below is a chart comparing the performance of gold to that of the S&P 500. When this line rallies, gold is outperforming stocks. And when this line falls, stocks are outperforming gold.

As you can see, gold dramatically outperformed stocks during the first quarter of 2025. Since that time, this chart has formed a bullish falling wedge formation as stocks outperform gold from April through August.

The bad news is that this chart just broke out… to the UPSIDE. This is signaling that we are entering a period in which gold once again outperforms stocks.

Put another way, the next round of inflation is coming soon. The time to prepare for this is NOW before it hits!

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