GoldSeek Radio Nugget - Bob Hoye: Rising Gold Prices Hint At Economic Downturn

Market historian and author, Bob Hoye of chartsandmarkets.com shares encouraging comments on the gold mining sector.

- Did the Great Financial Bubble end in 2022 and if so, what are the implications?

Hoye says:

So what this works out for the gold miners, is that for each post bubble depression, this has been the case: gold's mining cost declines relative to the bullion price and gold miners make money consistently through the Great Depression. So does this imply that there's another Great Depression coming? We believe so. They have always followed the great financial bubble and, and the global financial bubble effectively peaks in 2022.

...and there are a couple of things that suggests that the bubble is over. You got gold's real price down with the bubble then [it] heads up. So, that going up now says that we're on track for serious contraction.

The US dollar, the senior currency has been firm. That's another item also that we follow. The third one is interest rates and they've been going up. Some people have been complaining about them.

Fourth is that copper's price does down, and that has not [happened], copper has remained firm...So we got 3/4 items saying the great bubble is over and we're heading to a Great Contraction. 

- Is history repeating the cycle where gold miners are poised for an epic bull rally?
- Will the US economy roll over?
- Now that gold is outperforming the CRB, will the mining sector continue to benefit?
- If you'd like to ask Bob Hoye a question - dial our Q&A hotline 24/7, leave a message, 828-554-1203 and send a message - gsradio@frontier.com

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