Good Morning!

Last week I shared what is the most important chart of 2025 for Gold.

Gold against the Mag 7 stocks (MAGS ETF).

To outperform conventional assets, Gold needs to outperform the Mag 7. That's what is providing resistance to a real bull market. 

Today we explore the Top 3 Potential Breakouts in 2025. 

#1 Gold vs. 60/40 Portfolio (Total Return)

Previously I had a flawed 60/40 index which was not rebalanced annually. I fixed it a few weeks ago.

The proper Gold vs. 60/40 Portfolio Ratio shows a chart trying to break out from a 10-year base.

For a real breakout and powerful move, Gold must outperform the stock market. It has crushed the 40 but has not moved against the 60.

#2 Inflation-Adjusted Gold Price

Below we plot Gold vs. CPI and the Barron's Gold Mining Index.

They follow each other very closely and even did during the Great Depression. 

At present, the gold stocks are lagging Gold vs. CPI and that is because valuations are quite low. Historically, gold stocks have traded from 6x cash flow to as high as 25x cash flow. At present they are trading at 8x cash flow.  

Gold vs. CPI is trying to come out of a 45-year base on this monthly chart. This will be one of the biggest breakouts of this new secular bull market.

#3 Gold Stocks

If Gold breaks out against the 60/40 Portfolio and the inflation-adjusted Gold price also breaks out, that will set the stage for explosive breakouts in the gold stocks. 

Below we have GDX, GOEX (similar to GDXJ) and XAU trading in 4.5 year long bases.

This will be the most significant breakout in a loooong time.   

In TheDailyGold Premium....

In TDG #918 we published an updated report on another one of our Top 10 companies.

This company is on the cusp of rapid production growth. It could grow production by 125% in the next 3 years.  

We estimate that the stock, at $2500 Gold in 12-18 months could more than double. That means in a real bull market or continued gains in the real Gold price, it has much greater potential.

We aim to find the companies that are undervalued now and have significant potential to add more value in the future. And that can be turbo-charged by a real bull market in the sector.  

Thank you for reading.

I wish you all the best in 2025 and beyond.