Gold's Soaring Success: A 49.6% Surge in 2024 Outshines Equities, Tech Stocks, and Real Estate Amid Economic Uncertainty
Gold closing in on $2,600 and Silver on $31
Gold's remarkable performance in 2024 has seen its market capitalization surge by $5.7 trillion to reach $17.2 trillion. This represents a staggering 49.6% increase year-to-date, highlighting gold's status as a safe-haven asset during times of economic uncertainty.
Let's compare this growth to three other major asset classes:
Global Equities
The global stock market, as represented by the MSCI All Country World Index, has historically shown vulnerability during recessions. For instance, during the 2008 financial crisis, global equities lost approximately 42% of their value. In contrast, gold's current 49.6% gain demonstrates its inverse relationship with traditional risk assets during economic downturns.
U.S. Technology Stocks
The technology sector, particularly in the United States, has been known for its volatility during economic crises. The dot-com bubble burst of 2000-2002 serves as a stark example. During this period, the Nasdaq Composite index plummeted by about 78% from its peak. This dramatic decline stands in sharp contrast to gold's current positive performance, underscoring the precious metal's role as a portfolio diversifier.
Real Estate
Real estate, typically considered a stable investment, can also face significant challenges during recessions. The U.S. housing market crash of 2008-2009 saw average home prices decline by around 33% nationwide. Some areas experienced even steeper drops, with prices falling by up to 50% in the hardest-hit regions. Gold's 49.6% appreciation in 2024 showcases its ability to outperform even traditionally stable assets like real estate during times of economic stress.
These comparisons highlight gold's unique position in the investment landscape. While other asset classes often struggle during economic downturns, gold tends to thrive, attracting investors seeking wealth preservation and stability. The metal's substantial growth in 2024 reinforces its reputation as a reliable store of value and a hedge against economic uncertainty
Meanwhile:
159 Participants and 20 Countries are set to join the BRICS 40% Gold Backed UNIT payment system right away, hitting the ground running on launch.
Silver plays Catch Up Big Time
Very big picture there is still a massive divergence between GOLD & SILVER. Last time the two had a larger divergence like this, silver played catch-up hugely. And this time, silver will break out of a 45-year cup & handle. So the over-shoot this time should be massive. - Graddhy Commodities TA
The last time silver rose over $30, $AG First Majestic was at $8 a share 4 months later we’re back to that silver price, gold is even higher, and despite a 31% rally this week, First Majestic is only $6 (and this after they acquired Gatos Silver)
First Majestic stock has been very unremarkable and that’s saying it as nicely as I can.
Stay tough with the winners
Silver Academy’s top 5 picks
Andean Precious Metals: TSXV: APM, OTCQX: ANPMF
The company operates the largest commercial silver oxide processing plant in Bolivia's Cerro Rico region - the San Bartolomé facility. This strategic asset has produced over 65 million ounces of silver equivalents since 2009, demonstrating Andean's significant production capabilities.
Their robust balance sheet provides the company with financial flexibility and stability in a volatile industry.
The company follows a two-pronged growth strategy, focusing on organic growth in Bolivia and expansion through mergers and acquisitions in the wider Americas. This approach positions Andean for sustainable long-term growth and diversification.
Andean has successfully extended the life of the San Bartolomé mine from eight months to potentially 10 years or more, showcasing the company's operational expertise and ability to maximize asset value.
The company is committed to sustainable mining practices and community engagement, contributing approximately $75 million annually to the local economy through wages, royalties, and taxes. This dedication to social responsibility strengthens Andean's social license to operate.
By acquiring Golden Queen Mining Company (USA), Andean Precious Metals has taken a significant step towards achieving its vision of becoming a multi-jurisdictional mid-tier producer in the Americas, while positioning itself for sustainable long-term growth
Aya Gold & Silver: TSX: AYA, OTCQX: AYASF
Aya Gold & Silver Inc. is a leading silver producer, uniquely positioned as the only pure silver mining company listed on the TSX, with a strong operational base in Morocco. The company has recently reported record revenues of $13.7 million in Q2 2024, reflecting a remarkable 42% increase from the previous year, showcasing its robust growth trajectory and commitment to maximizing shareholder value. With ongoing expansions at the high-grade Zgounder Silver Mine, Aya is set to increase its processing capacity to 2,700 tonnes per day in 2024, further solidifying its market presence. Additionally, Aya's strategic exploration efforts have led to significant mineral resource estimates, including a recent discovery at the Boumadine project, which highlights the company's potential for future growth and profitability. Committed to sustainability, Aya Gold & Silver integrates responsible mining practices into its operations, ensuring long-term value creation for its stakeholders
Dolly Varden Silver: TSXV: DV, OTCQX: DOLLF
Dolly Varden Silver Corporation is a leading mineral exploration company making significant strides in the heart of British Columbia's Golden Triangle, focusing on its 100% held Kitsault Valley Project. This project boasts an impressive resource estimate of 64 million ounces of silver and 1 million ounces of gold, positioning Dolly Varden as a key player in the precious metals sector. The company is committed to sustainable mining practices while leveraging its rich history, including the past-producing Dolly Varden and Torbrit silver mines, to unlock further potential in the region. With a strong management team and recent discoveries enhancing its growth prospects, Dolly Varden Silver is poised for a bright future in the booming silver market. Investors can look forward to exciting developments as Dolly Varden continues to advance its projects and expand its resource base.
Outcrop Silver: TSXV: OCG , OTCQX: OCGSF
Outcrop Silver & Gold is focused on its high-grade Santa Ana silver project in Colombia. Recent drilling has discovered high-grade shoots within multiple veins, including up to 6.9 kg/t silver equivalent over 1 m width. This has led to a maiden resource estimate of 24.1 million indicated and 13.5 million inferred ounces of silver equivalent. The resources grade very high, with indicated at 614 g/t and inferred at 435 g/t silver equivalent. Metallurgical testing demonstrates excellent recoveries of 93% for silver and 97% for gold. Santa Ana contains over 48 km of mapped veins, providing substantial upside as only 17% have been drilled so far. Outcrop plans ongoing drilling to expand resources and make new discoveries across the large vein system.
Kuya Silver: CSE: KUYA, OTCQB: KUYAF
Kuya Silver is at the forefront of silver mining with its dual-track strategy, actively mining the high potential Bethania Silver Mine in Peru and developing the historic Silver Kings Project in Ontario. With robust mining and exploration programs underway, Kuya is poised to unlock significant value from its assets. Kuya Silver's experienced management team, led by industry veterans, is dedicated to maximizing shareholder value through strategic growth and operational excellence. As the demand for silver continues to rise, Kuya Silver stands ready to capitalize on emerging opportunities in the market.