This graphic illustrates the performance of gold prices and the HUI Gold Index since 1999. Despite gold continuously reaching new all-time highs, gold stocks remain significantly below their 2007 peak.
Since late 1999, gold has surged by 728 percent, whereas gold stocks have only increased by 277 percent. Typically, in a bull market, gold stocks outperform the price of gold, as evidenced from 2000 to 2008. However, this time appears to be different, with gold stocks trading sideways since 2013.
The pressing question is whether gold stocks will catch up with the rising price of gold. If they do, gold stocks will need to increase significantly from their current levels, potentially offering a substantial opportunity for investors in this sector.