The US national debt continues to climb, having recently crossed the significant $40 trillion threshold. It has since risen to $40.09 trillion and is expected to soon surpass $40.1 trillion, with projections suggesting it could reach $50 trillion by 2030. This mounting debt burden has pushed US 30-year Treasury yields to their highest levels in nearly two decades.
This environment is likely to benefit stocks in several key sectors, including gold mining, insurance, and regional banks.
Gold Mining Stocks May Benefit as Gold Jumps
Gold price jumped to a high of $4,695 recently as the US public debt jumped to $40 trillion. It was up by nearly 20% from its lowest level in June.
Gold soared because it is often seen as a safe-haven asset. In theory, gold should benefit as US debt jumps and the value of the US dollar retreats. This, in turn, should benefit gold mining companies.
