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Dear Fellow Investor,
Gold has been responding to the headlines, for better or worse.
Lately, it’s been for the better. But “better” isn’t “best.”
Allow me to explain....
Until last Friday, gold had been consolidating its recent gains. It had sold off from its recent peak around $1,550 early this month, and had spent the following two weeks oscillating around the key $1,500 level.
It was losing momentum, and I was worried that a deeper sell-off was in store. More ominously, the price had begun to rise and fall according to the latest headlines and, too often, the most recent tweet.
Forgotten, at least temporarily, were the foundational monetary concerns — including an explosion in negative-yielding bonds around the world. As you know, these are the key reasons why I believe this gold bull market will last many years and take us to record price levels.
We’ll Take What We Can Get
Instead, gold broke out of that trading range on Friday, thanks to news that China was cancelling a goodwill tour of U.S. farms.
Then, today, it took off on news that Speaker Pelosi is planning to announce formal impeachment proceedings against President Trump. That’s lifted gold by over $11 in this session and, at around $1,533, it’s beginning to threaten the recent highs.
Now, don’t get me wrong — as a long-suffering gold bug with lots invested in junior mining stocks, I’ll gladly take higher gold prices for just about any reason.
But if I had my druthers, I’d prefer if worries over the long-term value of fiat currencies were driving this rally.
I think they will, as 5,000-year lows in interest rates have led to unmanageable debt loads — debts so large that they’ll require significant devaluation of the underlying currencies.
This is what will drive gold to new heights over the coming years.
In the meantime, our junior mining stocks continue to take off. I’ve already told you how Great Bear Resources (GBR) recently soared to over 26 times our entry price.
Well, just today, New Pacific Metals (NUAG.V; NUPMF) leaped about 50% in price — it’s now up over 90% from its level when it was mentioned in these pages on June 20th.
If you want to find the next winners, you need to subscriber to Gold Newsletter here (I’m revealing two new recommendations in this week’s issue)...
...And register for this year’s New Orleans Investment Conference here.
In the meantime, watch the headlines — and watch gold!
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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