Caution: Bond Crash and Gold Spike Ahead

Written by Nick Hodge
Posted January 11, 2017 at 8:38PM

Dear Reader,

I have a very special interview for you today. It’s with Mr. James Dines, long-time editor of The Dines Letter and widely regarded as the father of the financial newsletter industry. Over the years he’s made many correct calls across many markets and commodities. He began pounding the table on gold when it was at $35 per ounce.

Mr. Dines has been warning about the detriments of fiat currencies for years. Now, he’s out with a new warning based on our current debt levels and monetary policy insanity. But that’s not all, in the interview Mr. Dines calls for $5,000 gold, a new uranium bull market, a bond crash, and discusses ways to profit and protect yourself from each. It’s well worth the read. Enjoy. And if you like what he has to say, you can check out how to get a free copy of his latest edition of Goldbug! for free by clicking here.

To your wealth,

Nick Hodge
Publisher, Outsider Club


This interview was conducted on 12/12/2016.

Gerardo Del Real: I have a real treat for you today. Joining me today is the legendary Mr. James Dines. Mr. Dines is the editor of The Dines Letter. He's also authored several books including Goldbug! (Get a free copy here!), Technical Analysis, Secrets of High States, and Mass Psychology. Mr. Dines has a legendary record in the investment community. His contrarian approach to investment analysis has led Mr. Dines to accurately forecast trends for many decades, from the unexpected gold boom of 1974, to the internet revolution of 1996, Mr. Dines has consistently gone against the grain and delivered gains that have been passed down for generations. Now Mr. Dines is “The Original Goldbug", of course he's the original "The Silver Bug", one of the original founders of technical analysis. He also predicted the internet boom, the uranium boom, the rare earth crisis, and as the original "Pot Bug" he recognized the profit potential at it's earliest stages. Mr. Dines most recently called the bottom in gold and silver stocks. Mr. Dines, it's a real pleasure, thank you so much for your time today.

Mr. James Dines: Oh, I'm looking forward to it.

Gerardo Del Real: Now, I briefly recited a few of your better known accomplishments and I only recited a few because I could go on for a while. I really believe we are in a unique time in history for hard assets and as I mentioned, you recently called the bottom in gold and silver stocks and I'd like to get your take on precious metals and the potential for a powerful and sustainable bull run. Before that, I'd like to start by asking you about a topic that I know you're passionate about which is your career long struggle to reinstate a link between gold and paper money. Why is that so important to you?

Mr. James Dines: Well, many people want to change the world for the better – to give back – but I wanted to contribute the biggest possible change I could. I immediately perceived that severing the link between gold and paper money would lead to inflations, depressions, and uncontrollable debt. And that's always resulted in a calamity. You can see Venezuela's currency crashing toward oblivion, ruining many of the helpless and nonchalant. It's only those who own the biggest asset in the world – gold – who are surviving. Venezuela's crashing despite the largest oil reserves in the world, so a currency crash really trumps all other considerations in understanding the future. I'm driven to warn the rest of the world that there is a debt crisis because it is unpayable. At $20 trillion there's no way it can be repaid.

This has happened before in history, often, and it's always ended the same way. Knowledge of currency is crucial to survival and also having some preparation for it happening, because it always happens suddenly. I feel sorry for the people in Venezuela, Zimbabwe, anywhere there's a currency crisis. Currencies are crucial, there's nothing immutable about them.

Gerardo Del Real: Now, you mentioned Venezuela, the most recent example, what's happening there's absolutely catastrophic and it underscores, I believe, the importance of your point. I see why that's so important to you. Now you've stated publicly that the next wave ahead in gold will take prices much higher. How high do you see gold prices going? How long do you see the bull market running and where are we in that process?

Mr. James Dines: Well, when they severed the price of gold from paper, I started The Dines Letter because I had to work to try to forestall it. It was at $35 an ounce and I foresaw a great gold and silver boom in at least three phases. The first one took gold up to $850, the second $1,800 approximately, and my next targets are between $3,000 to $5,000 an ounce. That depends on the folly of the world's leaders but the end will be tragic. Please understand that gold is not rising, the value of our paper money is shrinking, by oversupply – supply and demand. Government banks are not only printing too much money, they're bragging about it, they're proud of it. They're competing with other government banks. There's a cycle in currencies, they move up and then they move down to correct the excesses.

This interview was orginally published at Resource Stock Digest. Please click here to continue reading there.

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