This is what we’ve been waiting for: The next phase of the gold bull market has begun.
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I’m talking about the long-anticipated entrance of Western investors into the gold and mining share market.
As you know, this new gold bull market was launched with furious buying from central banks and Chinese citizens.
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Central banks want to reduce dependence from the U.S.-dominated global financial system, while Chinese savers and investors are not only culturally attached to gold, but have also been attracted to the metal’s performance relative to their stock and real estate markets.
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These have been powerful drivers for gold, but they were nothing that Western investors/traders have been able to place much confidence in.
But Fed rate cutting? Well...that’s something they can sink their teeth into. It’s a trend they can project forward for years. And it’s the trend that will take gold to far, far higher levels.
It’s already begun. As you can see, Western investors are starting to price-in the Fed pivot, and that has fueled the rise to new record levels.
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You’ll also notice the latest run, one that was sparked by Fed Chairman Jerome Powell’s announcement in his Friday comments from Jackson Hole, that the first rate cut will come at its September 18th meeting.
This has also added more fuel to the fire that’s already growing in gold mining stocks:
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The chart above shows the ratio of the GDX mining stock index to gold itself. As you can see, this ratio began to take off a couple of weeks ago as gold stocks began to outperform gold.
This is only the start of what’s to come. We are finally seeing investors recognizing how severely undervalued gold stocks are at these gold-price levels.
As I’ve been saying, gold at $2,500 changes everything for the gold stocks. When gold was at $2,000 just a few months ago, there were many companies with large gold resources that were trading for a quarter or less of where they would historically have been valued in just a normal gold market.
Now — at these gold prices — those companies could be 10-baggers or better.
In fact, I’ve found two of them that I’m about to unveil in a few days...
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- The first company is developing a multi-million-ounce gold deposit where a pre-feasibility study has projected a net present value of about five times its current market valuation. But get this: That study is based on a $1,650 gold price!
At today’s prices, the already stellar economics will explode off the page and attract hordes of investors...once they discover this hidden gem.
- My second new recommendation is a company that is about to reveal a resource estimate for its large project in Nevada. Looking at the data, I’m confident it will show about 1.5 million ounces of open-pittable gold at an eye-popping average grade above 2 g/t gold.
Those would be amazing numbers for a project in Nevada. But the truly shocking number is this: The company’s market valuation is still under US$9 million!
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I think you can see why I’m so excited about these two bargains and why I believe they could provide 10x returns as this gold bull market progresses.
In fact, I’m so excited about the generational profit opportunity now facing us, that I’m going to do whatever I can to get more savvy investors, like you, on board.
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To cut to the chase, I’m going to offer you one of my seldom-seen 30% discounts on Gold Newsletter.
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If you click on the link below and subscribe now, you’ll save big on a full year of Gold Newsletter and enjoy my on-going coverage of the macroeconomic outlook, the gold market and the highest-potential gold stocks.
You’ll also discover the two new exciting gold-stock recommendations I’ve outlined above, when our September issue is published this Thursday.
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But note that we are only offering this deep discount through close of business on this Friday, August 30th.
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We don’t often encounter potentially life-changing opportunities like these. As I’ve noted, it’s been over 20 years since we saw anything similar...and that last gold bull market created absolute fortunes for many investors.
Don’t delay. Click on the link below to get onboard while this opportunity lasts.
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Brien Lundin
Publisher, Gold Newsletter
CEO, the New Orleans Investment Conference
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