|
Dear Fellow Investor,
It’s not common to see the Dow give up 1,400 points over 48 hours. And these days, it’s even more uncommon to see gold rocket higher in response.
But that’s precisely what we saw last week.
During the Dow’s first, 832-point free-fall last Wednesday, gold only managed to gain about $5.00. Still, considering how it was sold off during the deepest days of the 2008 crisis, any gain was impressive.
The important difference this time is that gold isn’t widely held by speculators these days, so they couldn’t sell the metal to raise cash for their margin calls.
Quite the contrary: The large speculators in the “paper gold” futures and options markets are actually net short gold. And this is not an ordinary turn of events — the last time it happened was 2001.
If you remember what happened back then, gold took off on a run that forced the speculators to cover their shorts...and that desperate buying spree put rocket fuel under the rally.
It didn’t end for a decade, with the gold price having increased by more than five times...and junior mining stocks multiplying investors’ wealth much, much more.
Perhaps that’s why, on the second day of the stock market’s decline, gold leaped $30 higher. Importantly, even during the worst of the stock market carnage, the gold stocks were rising...and silver generally performed very well.
That shows that investors were buying into the metals and mining sector not only as safe havens, but as a way to make money as events unfold.
In short, the best is yet to come.
We’re Already Seeing Our Picks Multiplying
Awhile back I mentioned how one of our recent picks, Great Bear Resources (GBR.V; C$2.70) had nearly quadrupled in price after our recommendation in the August issue of Gold Newsletter.
I also mentioned that the price had come back a bit, and that you should consider buying it at that time.
Well, since that recommendation, it’s as much as doubled in price. And that run put it up more than six times higher than our August recommendation.
Another one of our picks has more than tripled in that time span.
The bottom line: We could be seeing the first stages of the next historic, fortune-building bull market in gold.
Long-term, of course, the out-of-control federal debt, combined with rising interest rates, means that the dollar will have to be devalued.
Nearer-term, investors around the world are beginning to realize that the Fed is in the process of winding down its rate hike campaign...while all the other central banks are about to begin their rate hikes.
That means money is increasingly shifting toward the euro and the pound, and out of the dollar.
Add in the stock market turmoil that could force the Fed to stop its tightening far sooner than anyone expected, and you have a recipe for much higher gold prices.
What To Do Now
The good news is that gold has only gained a few more dollars since last week’s amazing rally. It hasn’t continued to catapult higher...but neither has it given up its gains.
It’s the pause that refreshes — and a pause that we need to take advantage of.
Of course, the world’s top experts in metals and mining stocks will be at our annual New Orleans Investment Conference in a few weeks. If you hope to seize this rare opportunity, you need to be there.
CLICK HERE to learn more and save up to $400 on your registration.
And also, you should subscribe to Gold Newsletter to get my on-going coverage of the sector, along with our top recommendations. I’m confident we have many more money-mulitplying picks coming up, and you need to join the party while you still can.
CLICK HERE to subscribe to Gold Newsletter now.
But regardless of whether you can make it to New Orleans or decide to join the Gold Newsletter family, make sure you have your foundational holding in physical precious metals...and that you’re positioned in the best of the mining stocks.
This type of opportunity rarely comes our way. The last time was in 2001, and you don’t want to miss out on this one.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
|
