Will Gold Crush Stocks In 2026?
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The move from paper assets into hard assets is now accelerating.
In recent analysis, we’ve noted that hard assets are experiencing a once-in-a-lifetime transition as hundreds of billions of dollars in capital (and possibly even trillions) have begun moving into the space.
Some of the key drivers behind this mega-trend include:
- The AI arms race between the US and China requires gargantuan amounts of hard assets/ natural resources (copper, silicon, rare earths, steel, even water, etc.). The Trump administration is clearly “all in” on this, designating 60 minerals as “critical” to national security, cutting regulations/ fast-tracking the domestic production of these minerals, and even taking direct stakes in companies themselves.
- Globally governments are turning to fiscal dominance to finance economic growth. This means increased debt issuance, which in turn means more money printing by central banks to buy debt and maintain stability in the bond markets. This benefits hard assets/ inflation hedges.
- Central banks are now buying 1,000 tons of gold per year. For the first time in 40 years, gold is a larger portion of foreign reserves than Treasuries (in percentage term).
This is truly a tectonic shift. And by the look of things, it’s nowhere near over.
The Gold/ S&P 500 ratio is forming a clear Cup and Handle formation. This is an extremely bullish development. And it predicts gold is about to enter a period of MAJOR outperformance relative to stocks.
If this trend REALLY gets going, the outperformance by gold could be truly jaw-dropping. For the better part of 15 years, stocks have outperformed gold on a relative performance. Even a small “reversion to the mean” could result in gold CRUSHING stocks going forward.
Those investors who are correctly positioned for this could generate life-changing returns.
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