Gold Stocks Perform Best After They Look Their Worst

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Gold stocks are often out of favor with investors. This is especially true when the economy is doing well and gold prices are falling. 

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But history shows that gold stocks tend to outperform the market after they have been neglected by investors for a while.

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The chart below shows the performance of the NYSE Arca Gold BUGS Index (HUI) relative to the S&P 500 over the past 20 years. 

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As you can see, there have been several periods when gold stocks have outperformed the market by a wide margin.

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The most recent example is from 2015 to 2016. After lagging the market for several years, gold stocks soared in 2016 while the broader market was flat.

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So, if you're looking for a contrarian investment, gold stocks may be worth a closer look. 

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Just remember that they can be volatile and don't expect them to outperform in every market environment.

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Gold stocks are often out of favor with investors. This is especially true when the economy is doing well and gold prices are falling. 

Image Credit: Google 

These bars are typically produced by private mints and have a lower purity than coins. 

Image Credit: Google 

But history shows that gold stocks tend to outperform the market after they have been neglected by investors for a while.

These bars are typically produced by private mints and have a lower purity than coins. 

Image Credit: Google 

The chart below shows the performance of the NYSE Arca Gold BUGS Index (HUI) relative to the S&P 500 over the past 20 years. 

These bars are typically produced by private mints and have a lower purity than coins. 

Image Credit: Google 

As you can see, there have been several periods when gold stocks have outperformed the market by a wide margin.

Image Credit: Google 

Check Out 7 Best Gold IRA Companies With The Highest ROI In 2022

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