May 20, 2024
Dear Fellow Investor, |
| As someone who has followed the markets for a very long time and learned from many of the smartest investors to play the game, I’ve learned that one thing you never do is say these words:
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| “This time is different.”
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| But I’m saying it now.
Don’t get me wrong — the admonishment against claims that markets evolve into something where the old rules no longer apply was meant to remind us that human nature rules all.
That’s the fundamental truth...that despair inevitably leads to euphoria and back again, and whatever the current fad may be, the age-old cycles of boom and bust will still maintain.
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| What I’m saying is something else: That the current gold market is like nothing we’ve seen before, with different drivers and different results.
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| This new reality has been clearly explained with the release of what is simply the finest research report on gold...
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| Just Released:
The In Gold We Trust
Annual Report
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| Every year about this time, I look forward to an email from my friend Ronald Stoeferle announcing that he, his colleague Mark Valek and their team at Incrementum AG have completed their annual In Gold We Trust research report.
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| I’m always excited to see his message because their work is, quite simply, the best around.
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| Ronnie just emailed me with the announcement of this year’s work, and he says it’s “our most in-depth and widely researched report ever, covering more than 400 pages of analysis.”
I haven’t been able to read the entire voluminous report yet, but I shared with Ronnie that just from the introduction, I could tell they completely nailed how this gold market is different from any we’ve yet seen.
Here’s how they introduce this year’s In Gold We Trust report:
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- The showdown in the gold price that we announced in our last In Gold We Trust report has come to pass. The gold price broke through its long-term resistances and has set new all-time highs. Gold is now entering terra incognita.
- According to the old gold playbook, the gold price should have fallen significantly in an environment of sharply rising real interest rates. This and several other laws seem to have been suspended recently.
- In the new gold playbook, Western financial investors are no longer the marginal buyers. Central banks and the steadily growing demand from emerging markets – especially China – have for the first time been able to more than compensate for weak demand from the West.
- While there was a gold drain to the US in the 1960s, the global East is currently experiencing a veritable gold gain.
- The new gold playbook is a consequence of the seismic shifts that are taking place in macroeconomics, geopolitics, and increasingly also in the world’s monetary architecture.
- While central banks and investors in the emerging markets are increasingly learning to appreciate gold, Western financial investors continue to act according to the old playbook. A second wave of inflation or the overdue US recession could prompt them to rethink their approach.
- In view of the reorganization of the international economic and geopolitical structure, the reaching of the limits of debt sustainability, and possible further waves of inflation, we are convinced that it is advisable to consider increasing the percentage of both safe-haven gold and performance gold in portfolios.
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| That last point echoes my oft-expressed view that investors need to hold gold always as insurance, and occasionally as investments.
The time to hold it as an investment is now, and the In Gold We Trust report proves it with the most compelling and comprehensive analyses you’ll find anywhere.
I urge you to click on the link below to get your copy at no charge.
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| The Metals Markets Are Moving Now...
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| I’ll close with some quick comments on the remarkable developments now ongoing in the metals and mining stocks.
Last Friday (as I reported in a Gold Newsletter Alert entitled “Up, Up And Away!”) gold and silver exploded higher, bursting through key resistance levels.
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| Gold jumped nearly $40 to easily break through the important $2,400 benchmark, while silver catapulted over 6.5% to not only clear $30, but right through $31 as well!
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| This morning in overseas trading, both metals added significantly to those gains, but were beaten back just as New York trading commenced.
That was typical but, again, things are different these days. In this new normal for gold, the price is set in Asia, not New York, and bear attacks during Western trading are habitually beaten back.
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| That’s occurring as I write, as you can see above, with both gold and silver recovering their losses and once again advancing strongly.
Back to my original point: This time is different.
Of course, we will eventually reach a point of euphoria and experience a sell-off in the metals.
The thing to remember is that we’ve experienced a four-decades-plus trend of ever-easier money and that cycle — with all its attendant repercussions — is coming to a close. This is a long-term, multi-year trend...with many ups and downs along the way.
Make sure you’re ready by holding metals and miners.
In addition to reading the In Gold We Trust report linked below, I urge you to ensure that you’re also subscribed to Gold Newsletter or Gold Newsletter Alert (You can do so by clicking here.)
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| All the best,
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| Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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| CLICK HERE
To Download The 2024
In Gold We Trust
Report
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| 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.
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