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Dear Fellow Investor,
Something we haven’t seen since 2001 just happened.
And if past form holds true, you now have the chance to multiply your money 20 times over.
Or more.
Sounds like hype doesn’t it? Well, before you judge, consider this:
The “large speculators” tracked by the Commodity Futures Trading Commission just went net short on gold for the first time since December 2001.
Gold was $275 back then — but it then took off on a multi-year tear during which its price multiplied seven times over.
But our readers in Gold Newsletter did much better.
They enjoyed gains like 1,476% in Pacific Minerals...1,438% in Bear Creek Mining...1,180% in Altius Minerals...831% in Kirkland Lake Gold...1,919% in Northern Dynasty...1,868% in Anatolia Minerals...3,660% in NovaGold...
...4,767% in Rare Element Resources...794% in Keegan Resources...1,659% in Bankers Petroleum...1,500% in Western Silver...2,787% in Silvercorp Metals...and 8,004% in Silver Standard (yes, they could’ve multiplied their money 80 times over in that one).
And more — I’m just scratching the surface of the multi-baggers that we enjoyed during that historic stretch.
But those gains were much, much greater than even this might indicate. We had so many multi-baggers that we could reap gains of 400% or more in one stock...then roll those gains into one that might rise “only” 300%...then roll those winnings into a 10-bagger.
And then those really big winners that rose 15, 20 or more times in price...well, you do the math.
Absolute fortunes were made.
The next big bull market could be starting again — within days.
Yes, the negativity in the gold market has gotten to extremes not seen since those early days of this century, right at the beginning of gold’s most profitable bull run in history.
So is it about to happen again?
Well, in some respects it already is. Over the past couple of weeks, Gold Newsletter readers have been reaping huge gains as our recommended mining companies have announced take-overs or great drill results.
I’ll tell you more about that in a moment...including how you can get all of my hottest picks with a couple of clicks of your mouse.
But first, let me stress that the massive short position that the speculators have built up in gold is a rock-solid indicator that gold is about to turn higher — but it is far from the only thing arguing for much, much higher metals prices.
Let’s look at the powerful factors that are about to turn in gold’s favor.
The Trade War Is About To End
President Trump’s hard-nosed trade policy has dominated the headlines over the past few months. In the wake of his calls for unilateral tariffs, some of the biggest victims have been precious and base metals.
I’ve argued since the beginning that this will be a passing issue. Both sides have to reach a new trade agreement, because it’s too costly not to. But in the meantime, I told readers that this issue was creating tremendous bargains in junior mining stocks.
Still, the market fretted...and speculators piled on more short positions in the metals.
Then, a few weeks ago, Trump and European Commission President Jean-Claude Juncker reached a deal to negotiate a reformed trade deal with Europe.
But the bigger issue — China — remained. And this kept the pressure on the metals.
Then came the news late last week that China was sending a delegation to the U.S. later this month to resume talks.
Gold immediately rose $10 in response.
If there’s actually a resolution with China in a few weeks, you can bet that gold’s going to take off. And when the speculators are forced to start covering their huge short positions, their buying is going to throw gasoline on the fire.
Again, this could happen within days.
The Emerging Market Crisis
Trump’s hard line with Turkey over the imprisoned U.S. pastor also took a potentially nasty turn when the U.S. dollar soared against emerging market currencies, threatening a new global financial crisis.
But the dollar — which had finally broken through stubborn resistance at the 95 level on the Dollar Index — has already halted its advance as the emerging markets issue has faded away.
In any event, this issue was a net positive for gold: A resolution would send the dollar back down (which it’s already done)...but an escalation would have sent the Fed back into bail-out mode.
And that would’ve sent gold up hundreds of dollars in quick fashion. Which brings me to my next point...
The Fed Will Bail Out The Stock Market
The old saying that “the stock market isn’t the economy” doesn’t hold true any longer.
That’s because the Fed’s entire goal with zero interest rates and quantitative easing was to create a “wealth effect” by inflating the values of stocks and other assets.
They’ve succeeded. To the point where the stock market is still near historic highs...and in fact now represents a substantial portion of household wealth and the economy.
In short, the Fed simply won’t allow a major stock market decline like we saw in 2000. They’ll rush in with all the liquidity they can muster.
With interest rates still too low, they’ll go directly to QE. And because the patient has built up a tolerance to that drug, they’ll have to ramp up the QE to much higher, seemingly inconceivable levels.
Of course, that would mean record-high prices for gold, silver...and our favorite mining stocks.
Granted, this is a hypothetical factor. I’m not predicting a stock market crash in the near future.
But here’s what I am predicting....
The Fed Rate Hikes Are Going
To End Soon In Any Case
If you have to point to one single factor that has kept gold at bay over the last month, it would be the Fed’s campaign of interest rate hikes.
The Fed is desperate to get rates high enough so they’ll have room to cut them when the inevitable recession comes around.
But here’s what other analysts are forgetting: The Fed will be forced to halt their rate hikes when the Fed funds rate gets between 2.5%-3.0%. That’s because our debt is so high, at over $20 trillion and growing, that we simply can’t afford to pay higher rates on the debt.
Consider this: If interest rates rose only to historically normal levels of 5%-6%, just the interest on our national debt would amount to between $800 billion-$1 trillion.
That means that over half of our personal income taxes will go just toward interest on the debt. With much of that going directly to China.
Impossible. The American public simply won’t allow it. So it won’t happen...and we’ll never again see “normal” interest rates.
But back to my original point: The fed funds rate is now 2.0%. If the upper limit on the Fed funds rate is somewhere between 2.5%-3.0% (as the Fed itself has admitted)...
...Then the Fed could be done hiking rates by the end of this year!
Hardly anyone is watching this. But I’ve been warning my readers that the markets look ahead, and they’re about to start factoring in the end of the Fed’s tightening.
When they do, gold’s going to soar.
But here’s the final factor I’d like you to consider...one that’s changing at this very moment.
Summer Is Ending
I’ve been watching gold on a daily basis for a third of a century, and I’ve watched the metal swoon in one summertime correction after another.
It doesn’t always happen. And it hardly ever happens in an identical fashion. But in my experience, gold typically bottoms anytime from mid-July to mid-August.
Which means it’s already knocking against the end of what I perceive to be a typical summer slow-down.
Frankly, I think the spat with Turkey helped extend gold’s downturn this year. And it seems that just as this issue begins to fade, all of the other factors I’ve just mentioned are coming to the fore.
In other words, it’s very likely that we’ve seen the lows in gold. If not right at this moment, then within the next couple of weeks.
But we’re already making big gains in our exploration stocks...and there’s more to come.
We’re Already Banking Huge Profits
As I hinted earlier, our Gold Newsletter readers are already enjoying huge gains.
A few weeks ago, they learned that one of our favorite companies, Northern Empire Resources, had accepted a big buy-out offer. That gave them a quick 60% profit from our original recommendation.
Then, a couple of weeks ago, I recommended in our August issue that readers buy Aben Resources because “good news may be around the corner.”
Sure enough, Aben announced tremendous drill results that sent its stock soaring as much as 95% higher than my recommended price. A near double for our readers within days.
Now another one of our recommended stocks is about to release news on its high-potential exploration ground in the fabled Red Lake district.
I’ve just sent an urgent Alert to my readers recommending them to buy it now...before these results come in.
I fully expect this gold exploration stock to be our next big winner. And you can discover all the details on this company — as well as nine more of my hottest mining stock recommendations — in my Money Multipliers special report.
That report is just a few clicks away (you can get it immediately) by subscribing to Gold Newsletter right now.
To recap: This appears to be a once-in-17-year opportunity in gold, silver and top-quality mining stocks. If past form holds true, it could be the beginning of a multi-year bull run.
It’s an opportunity that you simply must take advantage of.
So I want to make it absolutely irresistible for you: If you subscribe within the next 48 hours, I’ll give you a year of Gold Newsletter at half-price.
That’s just $99 for a full year...including my Money Multipliers — Top Resource Stocks Posed To Triple special report...which you can get immediately.
That report alone sells for $79 a copy!
You simply won’t find a better deal than this...or a better opportunity in metals and mining stocks.
I strongly recommend that you take advantage of it by CLICKING HERE now.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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