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Latest from Brien Lundin
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Gold Rides Higher On Renewed Market Turmoil
Once again, a global stock sell-off is propelling gold higher.
Dear Fellow Investor,
It’s déjà vu all over again.
Over the last couple of weeks we’ve seen a number of severe declines in the U.S. and global stock markets. The good news for us gold bulls: Investors flocked to gold in every case, sending the price significantly higher.
That happened again today. As the U.S. stock market took a nose-dive that took the Dow down more than 500 points at one point, gold soared as much as $19 higher.
As I write gold has given up about half of its gains as stocks have come off of their lows, but the point remains: Gold is now viewed as a safe haven.
In fact, it’s now the safe haven of choice. In the previous stock routs this month, the dollar has risen along with gold as investors also sought shelter in the greenback. The fact that gold could rise along with the dollar has been impressive, but it’s probably even more noteworthy to see the dollar falling and gold rising.
That’s because our ideal resolution is to see these short-term, safe-haven rallies transform into longer-term trends based on monetary policies.
And as you know, I’m convinced the dollar is headed lower over the longer term, as our huge — and rapidly growing — federal debt will demand a steady and steep depreciation of the currency in which this debt is denominated.
Also, at some point next year the Fed will end its campaign of rate hikes, either as it reaches a wall at 3.00%-3.25% on the fed funds rate or when economic or stock market weakness demands it.
Which brings me to my next point...
Golden Opportunities continues below...
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Sponsor:
AgroNosotros (AgN) is a pioneering effort to vertically integrate the specialty coffee and fine flavor cacao industries, beginning with International Coffee Farms (ICFC) in Panama in 2014 and Belize Cacao Consortium (BCC) in Belize in 2016.
The business model is to acquire under-performing, under-capitalized, commercial coffee and cacao farms, and suitable raw land, in areas surrounding Boquete, Panama and in the Toledo District of Belize and turn those farms/raw land into very productive specialty coffee and cacao farms.
AgroNosotros currently operates 10 specialty coffee farms and 3 fine flavor cacao farms.
Once acquired, depending on the farm itself, a specific plan is put in place to repurpose the farm by adding capital and know-how (coffee or cacao science) to fully develop the farm and get it operating to its maximum potential.
Shade crops will be managed, water systems implemented, and soil and leaf improvements conducted. Old trees that are past their peak will be cut down and replaced by saplings of new, healthier, more in-demand varietals from our own nurseries. And the coffee and cacao will be processed and analyzed for quality in state-of-the-art, on-site wet & dry processing plants and proprietary laboratories.
Once implemented, these plans need time to mature…. to “harvest” the extra rewards. These extra rewards will provide increased profits in the form of increased coffee and cacao quantity, higher quality and higher sales prices.
A key part of the business model is to be able to supply micro-lots of single-origin, traceable, specialty coffee and fine flavor cacao worldwide to buyers of these in-demand specialty products.
What does this mean to you? We afford individual investors the opportunity to acquire 1/2-acre parcels of land within our network of farms and to participate in the profits. Offering a completely passive, turnkey managed, international agricultural real estate ownership opportunity with a legacy income.
By participating in this opportunity with AgroNosotros we will all be helping to improve the lives of hundreds of subsistence coffee and cacao farmers and their families through fair and sustainable direct trade.
To find out more visit: www.agronosotros.com
To learn more about AgroNosotros, listen to their appearance on the Gold Newsletter Podcast by clicking here.
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The Stock Market And The Economy Are Now Inseparable
Remember the old days, when everyone knew that “the stock market isn’t the economy”?
Well, that’s simply not true anymore. And you have Greenspan, Bernanke and Yellen to thank for it.
These three Fed chairs used their powers of monetary easing and money printing to inflate financial bubbles that would simultaneously inflate household wealth...or at least create the impression of wealth.
And this new-found wealth would prompt consumers to spend, which in their view (or at least Bernanke’s and Yellen’s) is the bedrock of economic growth.
Give ’em credit — instead of the retail price inflation of the 1970s, the Fed was able to fuel an equally impressive inflation in equities, bonds and real estate.
Of course, the experiment had a hiccup in 2008, but nothing that a more-concerted effort, along with the use of some newfangled tools like quantitative easing, couldn’t overcome.
The result: Household wealth today is represented not by savings, but equity and real estate values. So any significant decrease in those values will crater the economy.
Which is why the Fed won’t allow it to happen. Or at least not too much.
You get where I’m going with this: If/when we see a major sell-off in the stock market, the Fed will quickly halt its rate hikes...and perhaps revert back to easing.
The former will send gold much higher; the latter would send it to new record levels.
The bottom line is that there are so many paths for higher gold prices right now. If the economy keeps chugging along, we’ll see rising inflation that will push the price of gold, silver and other metals steadily higher. If the economy falters, the Fed will renew its massive easing programs, and that would quickly catapult gold and silver to dizzying levels.
Either way, you win — if you’re positioned in the right metals and mining stocks, and using the right strategies to maximize your returns.
Of course, the world’s top experts in the sector 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.
The conference begins next week, but there’s still time for you to reserve your place and save up to $400. CLICK HERE to learn more.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
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