By Nick Giambruno, chief analyst, The Casey Report For over 5,000 years, gold has been mankind’s most enduring form of wealth. Throughout history, many different civilizations around the world have all come to the same conclusion: gold is money. That didn’t happen by accident. It happened because gold has a set of characteristics that make it uniquely suitable as money. It is durable, divisible, consistent, convenient, and most important, it has strict scarcity. Physical gold that you store securely in your possession represents wealth that criminals, thieves, and governments cannot easily steal, confiscate, freeze, sanction, or devalue. But for the last 50 years, governments and their lapdogs in academia and media have tried to minimize the importance of gold in favor of their inferior paper currencies – which they can, of course, create unlimited quantities of whenever they want. Ron Paul put it best when he said, “Gold is honest money disliked by dishonest men.” Paper money and all the ills it brings amount to the scam of the century… and you are the victim. But here’s the good news… It’s all going to change sooner than most people think. Not only that, but if you position yourself right now, you could make huge profits. | Recommended Link | | Brace for an "aftershock" of the crash The man who called the 2020 market crash has an urgent new warning. "The coming days will be a financial disaster." Keep in mind: He also called the 2008 crash, months before it happened. Along the way, you could have doubled your money 10 different times. He made 10 times his money just before Black Monday 1987. And during the dot-com meltdown in 2000, you could have made 14 times your money in just over 2 months by hearing him out. | | | -- | The Biggest Gold Bull Market Ever About a year ago, after putting together the pieces to see the big economic and political picture, it became apparent to me that we were on the cusp of something truly historic. I said we had just entered the biggest gold bull market in history. A few weeks later, the price of gold broke out of its six-year trading range and rocketed higher. 
The trends that pushed gold higher last year are only getting stronger. Plus, now there’s a new trend that’s adding rocket fuel for higher gold prices – the government’s misguided reactions to the coronavirus and ensuing stock market crash. Governments are destroying their currencies at breakneck speed. Following the outbreak of the coronavirus, which popped the “everything bubble,” governments have thrown out the last semblance of fiscal and monetary sanity. The U.S. federal government is bailing out just about everything – the airlines, the tourist industry, the shale-oil industry. It’s even sending just about every citizen more than $1,000 each. In a matter of days, central banks have fired up the printing presses and created more currency units out of thin air than they have for most of their existence. To call this reckless would be a severe understatement. As governments race to destroy their currencies, it will only make gold more attractive. Have a look at this chart of the gold price this year plotted against the S&P 500… 
So far this year, gold has risen 16%. And the S&P 500 is down 13%. The bull market of 2008-2011 saw gold rise 166%. That could pale in comparison to what will happen with the unprecedented torrent of money printing global central banks are unleashing right now. It is all pushing towards the ultimate end game – the re-monetization of gold. We could easily see gold breach $5,000 an ounce. And that’s conservative. This gold bull run will not only be a historic one. I think it will be the biggest bull run ever. | Recommended Link | | 597x more powerful than iPhone technology? You're looking at a new chip that's 597x more powerful than the one in the iPhone X. And it will soon unlock some amazing new "apps" on your phone or tablet. Like "virtual" assistants that are almost identical to humans… and can book your restaurant reservation while you play a round of golf. One expert says it could be "the biggest breakthrough since the microchip in 1959." For investors, it means an incredible new opportunity… A chance to participate in a $15.7 trillion boom. Alongside Google, Amazon, Oracle, and just about every major company in America. | | | -- | How to Play This Historic Gold Run You may question why gold plays have underperformed gold over the past month. Others may wonder why the metal itself has whipsawed in price. Let me explain. While it’s true that gold is a disaster hedge, it’s not always that simple. The financial crisis in 2008 illustrates this point. It saw gold fall 31% with the overall market before bottoming out nine months later. The yellow metal then swiftly swung into a full-blown bull market, touching its 2011 high of around $1,900. I expect this time to be no different. 
As for gold stocks’ relative underperformance versus the metal, gold miners as a group have trailed gold. It shouldn’t be surprising. Gold mining stocks usually amplify the movements of gold. After all, their profits are highly leveraged to the gold price. That’s why we hold them in our portfolio. Of course, unlike the physical metal, gold miners are real companies with flesh-and-blood employees. If the virus hits the miners and they can’t work, this could result in less gold extracted. Lower revenue and diminished earnings may follow. But the sell-off in the gold space looks overdone. It’s the most significant opportunity I see at present. As gold continues to strengthen, I expect its price, and associated stocks, to go much, much higher from here. In the meantime, I recommend that you continue to put your money in safe havens, like physical gold and the best precious metals stocks. Until next time, Nick Giambruno
Chief Analyst, The Casey Report
Editor’s note: If you don’t want to miss out on this historic gold bull market that Nick describes above, we urge you to check out our “Gold Investor’s Guide.” It’s our free primer on gold… and a great resource for readers who want to start building their exposure to the metal. Go here to check it out.
Reader Mailbag Today in the mailbag, more readers share their thoughts on the government’s response to the coronavirus, after Doug Casey claimed the stimulus program will be disastrous for our economy. John and David both believe that there’s no such thing as “free” money: I've said it before and I'll say it again. The cheese is always free in the trap. Anyone who has hunted, or knows someone who has hunted, understands how a bait pile works. Created money debases all the rest. – John In a crisis, this "handout" may be justified, provided it is just a "one-off" and provided that there was a plan to bring the deficit under control and reduce the debt. Unfortunately, neither of the last two exist or are even planned! I've put "government" in quotation marks because governments have no money of their own, as Margaret Thatcher reminded us here in the UK in the 1980s. So this "free" money WILL be paid for by the taxpayers in some way, at some stage in the future! – David Another reader living in South America shares why he’s not expecting any assistance: I live in South America and have lived here for 50 years. We are following all the procedures – staying at home, wearing masks, gloves, etc. When will this be over? Probably in two months. I do not need government free money, and I am not expecting any. I am sure many people in the USA, who live paycheck to paycheck, are in a hell of a bind. Everything in the USA is overpriced. Airlines and many others should not be bailed out. However, banks should not fail, and no person or business should wake up to zero money in their account. – William And Larry wonders if the way out of this is to focus on American industries – and practice more compassion… We need the production of goods returned to America. Then there will be no need for a giveaway, as all can and must contribute to the nation. Rights should be respected and protected. Lower Congress and corporate salaries and other benefits to what average citizens receive. Teach compassion, acceptance, forgiveness, and gratitude toward others by habit. – Larry Is government money really free? Is the stimulus program necessary, or is it just hurting our economy? Let us know at feedback@caseyresearch.com.
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