The market is finally waking up to a reality gold investors have seen coming for months…
We’re now officially in the meltdown phase. The S&P 500 has cratered over 200 points.
Gold, after surging past $3,000, has pulled back—but still holds right around that psychologically critical level.
Meanwhile, miners are getting hammered across the board. The GDX and GDXJ are down 8%, with some names falling even harder.
But what’s happening isn’t random.
It’s the natural consequence of years of excess, now colliding with a political and monetary shift being driven—very deliberately—by President Trump and Treasury Secretary Scott Bessent.
Make no mistake: this isn’t Powell’s market anymore.
Trump and Bessent knew what was coming.
They understood the U.S. economy couldn’t function with rates this high—not with $37 trillion in debt, not with commercial real estate imploding, not with the auto and housing markets buckling under decades-high delinquencies.
So, they did what Powell wouldn’t.
They triggered a rate shock through the backdoor: tariffs.
Tariffs are essentially stealth rate cuts.
By applying economic pressure from the fiscal side, Trump and Bessent have forced yields to plunge.
The 2-year yield has collapsed to 3.6%, now sitting nearly a full point below the Fed funds rate.
That’s an inversion the Fed simply cannot ignore.
Markets are already pricing in emergency action. And the data backs it up.
The Atlanta Fed is now forecasting a negative 4% GDP print for Q1. That’s not a slowdown—that’s a full-blown contraction.
Commercial real estate is getting auctioned off at 70–80% discounts to its 2019 value. The FHA loan book is a ticking time bomb, with over half of borrowers holding debt-to-income ratios north of 40%.
Six million Americans are behind on their multifamily mortgage payments—the highest level since 2010.
The Fed has no choice left. They’ll cut. They’ll re-liquify. They’ll open the spigots and monetize bad debt in the trillions.
They’ve done it before, and they’ll do it again.
In 2020, the Fed’s emergency liquidity injection ignited a historic rally in gold stocks. The GDX doubled within months.
This time, the setup is even better.
Gold is hovering around $3,000 as I write this. Oil – the miners’ #1 input cost – is down to $62 a barrel. Margins are expanding. Cash flows are surging. And yet, the gold market hasn’t caught on… yet.
Take Newmont, the largest gold miner in the world.
It’s generating $11.60 in earnings per share right now—yet the stock is trading for just $45.
That’s a valuation disconnect of historic proportions. That’s what happens in panic phases… price gets divorced from value. But here’s the thing…
Price always catches up. Always.
Newmont will mean-revert. And when it does, it won’t stop at $60 or $70.
It will overshoot, as capital floods into the sector, just like it did in 2009… and 2020… and every other time the Fed has lost control.
And here’s the real kicker: if Newmont – already the biggest and best-known player – is this undervalued…
They’re not just undervalued. They’re invisible.
Have You Heard of the Golden Anomaly?
Every 100 years or so, gold returns front-and-center to steady the world’s monetary system. We are closer to the moment than we’ve been since 1918. Now, Team Trump is overturning the current system in favor of one that – if successful – will restore the US to financial sanity… and send gold up to absurd new highs. That’s why you need to know about the Top Four miners with 100X potential.
This pullback won’t last much longer…
Because when the Fed steps in – and they will – gold stocks are going to rip.
And this time, the smartest capital will be ready.
To your wealth,
Chief Analyst and Founder, Golden Portfolio