Sabtu, 03 Oktober 2020

Money-Printing Won’t Last, But This Will

Jeff Clark's Market Minute

Mike’s note: Lately, there’s been a lot of talk about gold. With October being known as a volatile period for markets, it’s no surprise…

But if you ask founder of Casey Research Doug Casey, he thinks we’re in the early innings of the biggest gold bull market in history.

And right now, he’s revealing the method that made him a multimillionaire from buying gold stocks. He believes it could help you make 50 times your money, or more, during this gold rally.

Also, keep reading to find out what Casey Research’s commodity expert David Forest says about why gold is still the best way to protect your wealth...


Money-Printing Won't Last, But This Will

By David Forest, editor, Strategic Investor

My regular readers know I believe we’re in the early innings of a historic gold bull market.

And there are many reasons why I think the precious metal will soar to new highs.

It recently took out its all-time high of around $1,914 an ounce and shot past $2,000.

And the feds continue unleashing a wave of money-printing unlike any we’ve seen. It’s trying to paper over the market's insanity… but it can’t prop up the economy forever.

And as the dollar’s value continues to decline, people will rush out of inferior fiat currencies… and into gold.

But it likely won’t be a straight shot higher. There will be surges and dips along the way.

I understand this can be unsettling for those with positions in gold. And I get a lot of questions from readers wondering what to expect in the months ahead, like this one from Daniel:

Hi, Casey gang. I really, really appreciate you guys. Will gold stocks sink as deep as they did in March if we have another crash? Why or why not?

Since the corona crash in March, the Fed has pumped out $3 trillion in new money supply. There’ll be more coming.

[URGENT] Special Warning to President Trump

Intuitively, made-up money shouldn’t solve real economic problems. But it worked in 2008. It might get us through the current crisis as well.

Stock markets could glide on and continue rising. In fact, stock prices might rise faster than ever because of all the new money sloshing around.

But these are uncharted waters. No one knows what’s going to happen. Common sense dictates the Fed can’t prop up the economy forever. If the music stops, it’s going to be ugly.

This is especially important as we near the third quarter. October, especially, is a historical “witching season” for market crashes. It’s almost a self-fulfilling prophecy. Everyone worries, and selling can quickly accelerate into a runaway collapse.

It pays to be ready in case that happens during the coming months.

What does this mean for your resource portfolio? After all, aren’t gold stocks and precious metals supposed to protect us against these black swans?

If we do get a major crash, physical gold likely will offer protection. Historically, gold prices fall less than other assets during financial panics.

But here’s the critical point: Gold will fall initially if we get a crash. During crises, people sell everything. That includes physical gold.

Past Crashes Show What Lies Ahead

As for what could happen in the months ahead, I’d like to point to a couple of historical examples...

In 2008, gold bullion dropped from $1,000 per ounce to $700.

It quickly rebounded. By September 2009, it was back to $1,000. It then soared to a record $1,927.70 in 2011 – triggering a massive bull market in gold stocks.

Many people don’t realize, but the 1930s were the same. Gold mining was one of the few industries that prospered.

Again, it wasn’t a straight line up. The initial shock in 1929 wiped out many investors and companies. And a second collapse clobbered more investors in 1930. You can see that in this chart below…

But here’s the surprising thing. That collapse triggered big gains for gold stocks.

Here’s another chart, showing major gold miner Homestake through the 1930s. Notice how the gold major took flight starting in 1931, when the big crash was in full swing.

Gold stocks like Homestake got a big lift in 1934, when President Roosevelt raised the gold price nearly 70% to $35 per ounce. That touched off a gold mining bull market that lasted through much of the Great Depression.

Although we’re now off a gold standard… and presidents can’t revalue gold… over the past 15 months, gold prices have already risen 37%. So I think we could see something similar unfold.

That’s why I’ve been telling readers that this could be a gold bull market for the ages.

And it’s not too late to get in.

The first step is owning physical gold. After that, consider taking a position in VanEck Vectors Gold Miners ETF (GDX). As the price of gold rises, gold miners could skyrocket even higher.

But if you’re looking for the best way to invest in gold, my colleague Doug Casey recently sat down and revealed how he built his gold fortune.

He’ll tell you all about the method that’s made him a millionaire… and reveal five gold plays set for 10x… 20x… even 50x gains. Just go right here for all the details.

Keep walking the path,

David Forest
Editor, Strategic Investor

In Case You Missed It…

You Don't Need Gold Coins to Profit From This Gold Boom

Want to make money from gold but don’t own any?

Then you’ll want to watch this short video.

In the first few minutes, multi-millionaire Doug Casey shares his #1 Gold Secret

Yes, YOU – and everyone – can profit from gold… without owning a single ounce.

And you can get started with as little as $5…

Yes! Show Me Doug's #1 Gold Secret.

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