Gold Stocks: The Big Picture

It’s time to update our long-term weekly charts showing how the gold sector, as represented by the Barrons Gold Mining Index (BGMI), has performed in US$ terms, gold bullion terms and S&P500 (SPX) terms.

The first of our long-term charts shows the BGMI since 1964 and includes a 200-week moving average (the red line). The peaks of the three major rallies that composed the 1960s-1970s bull market are labeled “1”, “2” and “3”. A visual comparison of the current bull market and the bull market of the 1960s-1970s suggests that the early-2008 peak is equivalent to the early-1968 peak. Consequently, the early-2008 peak has also been labeled “1”.