The risk of stagflation has come to the forefront and hit the markets. We look back at the at the period from late 1960s to early 1980s, a time which we argue is similar to the one we are in. At the time, stagflation proved to be very bullish gold. Gold even held up through recession periods, albeit with volatility. The gold equities offer a win-win here. The peer group we look at discounts a gold price of cUSD2500-2550/oz, well below spot. They present compelling risk/reward with limited downside even in the case of a recession, and significant upside at spot, and massive optionality once the bull market is in vogue.