How to Participate in the Early Stages of a Gold Boom
Throughout history, gold has been the most secure, least volatile, most international, and least political form of money. It continues to offer the same utility today. And it won’t take long for gold to climb much, much higher…
Thank you for taking a look at this research presentation. Inside you’ll find:
- How to recognize the start of a gold bull market
- What it will take for gold and gold stocks to take off this year
- How to get immediate access to the №1 gold etf to own in 2022
Gold $3,000 Is Only the Beginning in 2022
The financial media likes to label precious metal investors as gloom-and-doomers… goldbugs… and doomsday preppers.
At least until gold starts heating up — and the economy looks dangerous.
That’s when gold investors start to hear from friends and family. For example, a few questions I’ve been asked in recent weeks:
“Should I be selling stocks and buying gold?”
“How do I buy gold? And… what should I buy?”
“Do you think gold will keep going up?”
Normally this level of interest might give me pause. After all, I’ve known these folks for years — and they never seemed to care about my thoughts on gold before. Could the trade be getting overheated? Is this a “sell” signal?
My bet is no. Not even close.
If you’ve been investing for long, you’ve probably heard plenty from gold’s detractors. The arguments are always the same… Gold doesn’t pay interest or dividends. It just sits there. It’s a “barbarous relic,” as legendary investor Warren Buffett has put it in the past, that has no place in today’s world. As Buffett said in a speech at Harvard in 1998…
Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.
But today, after what feels like nearly a decade of disappointing performance, I believe gold is on the cusp of a major bull market.
In fact, over the past six months, gold is already quietly outperforming the S&P500… the Dow… and the tech-heavy Nasdaq.
Some of the world’s smartest investors are jumping in, too.
Ken Fisher, founder of Fisher Investments, just added a gold position worth a quarter million dollars to his portfolio.
Billionaire bond king Jeffrey Gundlach told Yahoo Finance:
“Gold is going to go a lot higher.”
Egyptian billionaire Naguib Sawiris says a QUARTER of your portfolio should be in gold as inflation creeps higher…
But perhaps the most surprising to me was when I saw that real estate billionaire Sam Zell, who spent his career arguing AGAINST gold… is now buying gold as a hedge against inflation.
But it doesn’t stop there…
Billionaire hedge fund founder Ray Dalio told readers not long ago he sees a paradigm shift happening in the gold market. He compared today’s price movements with historical turning points like:
- Gold’s historic 2,300% leap in the 1970s from $35 to $850 per ounce after President Nixon took the U.S. off the gold standard…
- And in the early 2000s, when gold tripled in value — soaring from under $300 per ounce in 2000 to $1,000 by 2008.
Which might explain why his fund currently holds nearly $400 million worth of gold.
Today, many of the most powerful, well-connected, and smartest investors in the world are loading up on gold in unprecedented ways.
And while there are still plenty of staunch gold skeptics, my guess is that most folks fall into the same category as my friends and family. That is, they understand that gold holds some sort of importance but may not understand why.
That’s what I’d like to explain in brief today…
What Gold Really Means
The most important thing to realize about gold is that it’s the only real money. By that, I mean it’s the only currency that isn’t someone else’s liability. It stands on its own.
Gold has been used as a medium of exchange for more than 5,000 years. Meanwhile, every single fiat (paper) currency in the history of the world has failed. Governments simply cannot resist printing more and more of it until it becomes so watered down that it’s worthless.
But governments can’t print gold. That’s why they hate it as a form of currency. Gold’s value comes from its scarcity. And it takes an intense amount of capital, labor, and time to dig it out of the ground and process it.
Historically, during times of financial crisis or political uncertainty, gold has proven its value as a “safe haven” asset. That’s why today — perhaps more than ever — it’s critical that your portfolio has some exposure to gold.
The economic fallout from the COVID-19 pandemic and ensuing lockdowns is incalculable. And the Federal Reserve and the U.S. government did everything they could to prop up the markets. That means the printing presses ran hot.
The Fed pumped trillions into the markets, on top of the multitrillion stimulus package from Congress
Of course, none of this money was real. It wasn’t earned… It was created.
That doesn’t bode well for the value of the dollar. But it will be great for gold. That’s why it’s more important than ever to place a portion of your investment portfolio in gold… and soon.
The Real Price of Gold
As a personal rule, I rarely make bold predictions on a price target for gold. But I am confident that the price of gold will reach $3,000 over the next 12 to 18 months. Here’s why…
When we look at gold prices across history, we typically use the “nominal” price. That’s simply the number of U.S. dollars it would take to purchase an ounce of gold at that specific point in time.
But we also know that the purchasing power of the dollar has been inflated away over time. A dollar today doesn’t purchase what a dollar could buy decades ago.
Meanwhile, the purchasing power of gold has remained relatively constant. For example, throughout the last several hundred years, the price of a custom-tailored men’s suit could be purchased for about an ounce of gold.
That’s why I prefer to look at gold by using the real price. That means using inflation-adjusted dollars (today’s dollars) to value gold through history.
So for example, in 1980 the nominal price of gold was $800 per ounce. But in today’s inflation-adjusted dollars, the price would be $2,800 per ounce. That means that gold still hasn’t hit its all-time high in real terms. It still needs to climb quite a bit.
And it’s going to…
The #1 Gold ETF to Buy in 2022 to Participate in a Gold Boom
The best opportunities are in gold ETFs that stack the returns of gold on top of a dividend payout.
The Strategy Shares Gold Hedged Bond ETF (Ticker GLDB) pays a 2.25% distribution yield while tracking the price of gold.
The GLDB ETF has a full 100% exposure to gold that enables it to track the Solactive Gold Backed Bond Index. The Solactive Gold Backed Bond Index is comprised of a portfolio of investment grade corporate bonds that is fully hedged to the price of gold to protect against inflation. Since Solactive started tracking data on the Gold Backed Bond Index on Jan. 3, 2006, through its launch the total annualized return has been 14.57% annualized.