This article is Part 3 of a series on the massive shift taking place with gold right now. You can read the other parts here: Part 1, Part 2, Part 4.
We’ve been diving into the recent surge in gold prices, and it’s true — gold has been making headlines with its impressive climb.
But before you rush out and invest your entire life savings in gold bars, let’s take a step back and examine the bigger picture.
Many headlines might lead you to believe gold has reached never-before-seen heights. And it’s true — the dollar price of gold has never been higher.
But here’s the thing: when we consider inflation, the story gets a bit more interesting.
The gold rush of the 1980s had prices peaking around $850 an ounce. Back then, that price tag seemed astronomical.
But here’s a fact to chew on: adjusted for inflation, that 1980 high would translate to roughly $3,900 in today’s dollars.
For a different perspective, consider this: the highest-grossing movie ever, adjusted for inflation, is still “Gone With the Wind,” released in 1939.
While it has grossed just over $200 million in the 85 years since it was released, because the value of the dollar was so much stronger when that revenue was generated, it tops the list.
The next closest movie, the original “Star Wars” film, has generated almost $461 million.
But because it was released in 1977, that $461 million is actually worth less than the $200 million generated since 1939.
Take a look at the chart below to see how some of the top-grossing movies compare to these top 2 hits:
This comparison with “Gone With the Wind” isn’t meant to be a movie versus gold showdown. It simply highlights the importance of considering inflation when evaluating historical price points.
So, what does this mean for gold?
Even with the recent surge, gold’s price, adjusted for inflation, isn’t close to its all-time high.
And while that might sound like a bad thing… there’s a hidden opportunity.
Here’s the key: with inflation eroding the dollar’s value — especially the runaway kind of inflation we saw right after the pandemic, which has remained more persistent than the government would like — gold’s potential for future growth, becomes even more intriguing.
One of Jeffry’s favorite long term plays in gold right now is gold mining company, Newmont Corp (NEM).
He called it back in early March when it was in the low $30 range. It has gone on to surge almost 30%, hitting a bit of resistance at $41 before retracing to its current level around $38.
But this run isn’t anywhere near done.
Jeffry tells us that this stock has entered one of the most powerful patterns he tracks: The Market Roadmap bounce setup.
And because of this, NEM could hit levels as high as $100 or even $150.
He warns that it’s a long term pattern and he’s chosen to play it with both shares and call options expiring January 2026.
But stay tuned to these pages, because he’s also playing a short-term pattern in gold that has been triggering nearly every week!
— The Jeffry Turnmire Trading Team
