Stagflation & the Miners

Source: Stewart Thomson 03/14/2025

Newsletter writer Stewart Thomson addresses the question: Is U.S. stagflation the driver for a massive move higher for the miners?

The wild antics of the U.S. government are not the cause of the grossly overvalued stock market’s tumble, but they are the fuse to the dynamite stick . . . and now the fuse is lit.

Here’s a disturbing look at the stock market via the Dow:

The Dow Industrials, Transports, and the advance/decline line have all now broken down technically.

Here’s a look at the horrific amount of overvaluation in the market:

Even after the debacle of the past several months, the SP500 is still far over overvalued (basis the inflation-adjusted PE ratio) than it was . . . at the height of 1929!

Rallies can occur, but they will only make the market more overvalued and even more vulnerable to a 1929-style crash. Gold is, of course, the world’s greatest asset and the lifeboat for all market sailors!

Here’s a stunning long-term chart of gold versus U.S. fiat:

Most investing is about making fiat money profits . . . but perhaps most of those profits should be regularly converted into supreme money gold.

Here’s a look at a very important stock for the miners:

Recently, I’ve been urging my readers to consider the ultra-bullish scenario of an “inside handle” for this massive cup and handle (C&H) pattern.

Ladies and gentlemen . . . the breakout is here!

Here’s a look at bellweather miner Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE):

There’s significant flag-like action on the Agnico chart, and it’s occurring near the key round number of $100. That’s a big green (or gold!) shoot for the senior, intermediate, and junior mining stock sectors as a whole.

What about the juniors? Well, here’s the GDXJ chart:

It’s outrageously bullish, and the giant inverse H&S pattern targets a price range of $75-$85, with an outside chance of hitting $100!

One stock that’s already on the move is Snowline Gold Corp. (SGD:TSX.V; SNWGF:OTCQB):

That’s Snowline, and perhaps it should be renamed “Beeline” since it’s making such a beautiful surge towards $10. The staircase action is superb. There could some back testing of the gold stock breakouts in the coming week with the FOMC meet, but the gold stock bulls are clearly in charge.

In the 1970s, gold stocks surged as the stock market swooned because of stagflation. There appears to be a 40-year cycle of inflation, and the latest one probably started in 2020. Good gold stock times are here, and more are near!

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Agnico Eagle Mines Ltd. and Snowline Gold Corp.
2. Stewart Thomson: I, or members of my immediate household or family, own securities of: GDX. I determined which companies would be included in this article based on my research and understanding of the sector.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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Stewart Thomson Disclosures

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

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