Everything is hot! It’s hot in Texas, we have hot interest rates rising and hot geopolitics, but gold is cool. Frank Holmes explains how gold stocks compared to the S&P 500 on a ratio basis are at a huge discount. When looking at the price from a mathematical standpoint, gold is due for mean reversion, as it is currently down two standard deviations. Historically, in the following three months after being down two standard deviations, gold has rallied 77 percent of the time.
For Frank’s full explanation, watch the video below!
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Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility.
The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.
U.S. Global Investors, Inc. is an investment adviser registered with the Securities and Exchange Commission ("SEC"). This does not mean that we are sponsored, recommended, or approved by the SEC, or that our abilities or qualifications in any respect have been passed upon by the SEC or any officer of the SEC.
This commentary should not be considered a solicitation or offering of any investment product.
Certain materials in this commentary may contain dated information. The information provided was current at the time of publication.
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