Gold’s behaving strangely | You are receiving this message because you have specifically subscribed to Golden Opportunities, have purchased a product or have registered for a conference with us or with one of our partners. If you'd rather not receive emails from us, please click the link at the bottom of this page to unsubscribe from our database. Remember your personal information will never be rented or sold and you may unsubscribe at any time. | Contact Us | Privacy Policy | View in Browser | Forward to a Friend | | | Gold’s Strange Behavior | | When everyone expects gold to fall further and it instead gains $100 on two successive days, something different is going on. | | May 7, 2025
Dear Fellow Investor,
| Yes, it’s different this time. | I know that’s about the most dangerous phrase in all of investing, and virtually everyone who has ever uttered it was ultimately made a fool by the markets. But there’s no denying that this gold bull market is unprecedented for a number of reasons. | A Bull Market Like None Other | First off, understand that gold, while it has a five-millennium-history as money, has only been an investible asset (and not officially regarded as money) since 1971, when President Nixon severed the dollar’s last remaining connection to gold. So if you count the early ’70s as one bull market, the late ’70s as another and the 2000s as the third, then the current bull market is only the fourth in the history of gold! | Amazing to think that I’ve witnessed every gold bull cycle. (Admittedly, I was a teenager in the ’70s and, fair to say, interested in other things.) | Anyway, when I say this gold bull market is unprecedented, I’m only comparing it against three other periods in history. Still, this one is different because it has been largely driven by official buying from central banks and, to some degree, by demand from Chinese investors. And this explains some of the unusual features of this market: | - The relative nonparticipation of Western investors, whether institutions or retail.
- The underperformance of silver and mining shares.
- Outside of post-election correction in November, the lack of any significant price pull-backs.
- Depressed and falling energy costs, which have served to further expand mining margins as the gold price has exploded higher.
- A period of economic and geopolitical turmoil in which the U.S. is regarded by other nations not as a leader or savior, but rather an instigator and adversary.
| I can’t remember any single one of these factors being extant in any previous gold bull run, much less all of them at once. This is truly uncharted territory. Today I want to briefly examine two aspects of this situation — gold’s strange behavior, and the opportunity that’s being presented. | A Refusal To Fall | Over the previous 14 months, I have joined many of my compatriots in the metals and mining markets in analyzing the gold market as a normal phenomenon. That means that we’ve been expecting it to ride the waves of investor sentiment, from exhaustion to euphoria, with the gold price rising and falling in typical waves. But gold hasn’t obliged us. Every time we’ve expected a typical market correction, the price has either continued to rally, or the “correction” has been merely a pause. The declines have never been as deep or lasting as we’ve expected. | This seems to be because this gold bull market isn't being driven by the typical swings in investor emotions. Instead, it's being directed by geopolitical strategy at the highest levels and fueled by the deepest pockets imaginable. | Now, my headlines at the top of this letter are a bit misleading, because every analyst worth their salt was confident that gold would rebound once China returned from holiday yesterday, and it wasn’t surprising that the gold shorts rushed to cover on Monday in advance of that. But still, two hundred-dollar-days in gold, in a row, is amazing. (Note that we’ve given up some of those gains today.) More generally, what I’m referring to when I refer to gold’s strange behavior is this refusal to undergo a significant price correction during this bull run. Again, this is largely because of the strategic, even desperate buying from official sources — primarily China...and possibly even the U.S. | The Opportunity... | One of the factors I listed above is the remarkable affordability of energy as the gold price soars. The result, as we’re seeing from the quarterly financials of gold miners, have been record cash flows for the producers. For the past couple of months, we’ve seen that begin to filter down to the juniors. Even as gold soared yesterday, for example, the gold mining stocks outperformed the metal. And many of the companies in our Gold Newsletter portfolio are beginning to take off. | As I’ve said many times, this is a generational opportunity. | In past bull markets, we saw the prices of junior exploration/development companies multiply, sometimes many times over. And for all the reasons above, plus the fact that gold is already far above any previous record and heading higher, this mining bull market promises to be more rewarding than anything ever seen. I urge you to climb aboard this train now...and to start make sure you’re subscribed to Gold Newsletter to maximize your returns. | All the best, | | Brien Lundin Publisher, Gold Newsletter CEO, the New Orleans Investment Conference | CLICK HERE To Subscribe To Gold Newsletter | | | CLICK HERE to watch interviews by Brien Lundin and Kai Hoffmann with many of today's most exciting junior mining companies on the Gold Newsletter Youtube channel. | | © Golden Opportunities, 2009 - 2025 | Advertisements included in this issue do not constitute endorsements from us of any stock or investment recommendation made by our advertisers. As you know, every investment entails risk. Golden Opportunities hasn’t researched and cannot assess the suitability of any investments mentioned or advertised by our advertisers. We recommend you conduct your own due diligence and consult with your financial adviser before entering into any type of financial investment. Golden Opportunities Jefferson Companies 2117 Veterans Memorial Blvd., #185 Metairie, LA 70002 1-800-648-8411 | | | |