4 Trillion Reasons to Own Gold Right Now

Written by Luke Burgess
Posted March 17, 2021

Gold is set to experience one of its greatest and most powerful bull markets in history.

Forget the run-up in prices back in 2011 — that was just an appetizer.

And forget the bull market of the 1970s.

The 2021 gold market is positioned to blow all others out of the water.

There's little doubt you've heard gold analysts in the past calling for $5,000... $10,000... or even $50,000 gold prices.

Heck, I remember back in 2011 there were guys even predicting $100,000 gold.

Of course, none of those forecasts ever materialized.

BUT market conditions have never been more strongly aligned to send gold prices absolutely screaming higher.

$50,000 an ounce for gold might not be unrealistic.

Just think, Bitcoin is at $60,000.

But gold prices won't just shoot up on their own. This is the catalyst...

Mo' Money, Mo' Problems

To pay for its economic stimulus packages up to this point, the U.S. government engaged in a policy of quantitative easing (aka monetizing debt). This is simply a policy whereby the government creates new debt in the form of bonds and sells it to the Federal Reserve with freshly created money, which is authorized by Congress.

What it all results in is more debt and a greater supply of U.S. dollars, and thus inflation. Back in 2008 the government and Federal Reserve began putting quantitative easing measures into place to address the housing crisis — which eventually caused gold to soar to an all-time price high.

But this time it's much different.

The quantitative easing measures the government just took in response to the COVID-19 pandemic are on a completely different level.

More than 25% of all U.S. dollars in circulation right now were printed in the past 12 months, as measured by M2!

At the height of the printing, the Federal Reserve was creating over $425,000 in new U.S. currency per second.

And they did that every second for nine weeks straight!

We're talking about a total of over $4 trillion — that's $4,000,000,000,000 — being almost immediately introduced in the market.

Despite this massive influx of new cash, however, the value of the U.S. dollar and long-term inflation rates have remained relatively stable throughout.

But that won't last long.

One of the reasons we haven't seen inflation rise across the board is due to the shutdowns and restrictions, which stopped people from spending money and driving up the price of goods and services.

In fact, Americans actually saved money during the pandemic. According to the U.S. Bureau of Economic Analysis, the U.S. personal saving rate skyrocketed to a record 32.2% back in April. Compare that with the 7.6% American personal saving rate in 2019. At the same time in April, consumer spending fell 12.6% as the economy slowed down and unemployment increased.

In short, fewer people were out and about spending money, so inflation in things like gasoline prices has remained low.

HOWEVER, states all around the country are quickly returning to normal as local restrictions are repealed. More and more people are going to be going out and spending money like they did pre-COVID.

And what's more, they now even have savings to spend.

What I'm getting at is a significant rise in inflation is written on the wall. The Fed can use clever wording to keep the market calm about it for now, but serious inflation is coming.

Will gold go to $5,000? $10,000? $50,000 an ounce?

It's honestly hard to tell how high gold will go. Fact is, the market has never been in quite this position.

However high gold prices do go from here, it's an easy bet for investors going forward.

But not all gold investments are created equal.

Some gold investments are better than others.

Investing in physical gold bullion is a safe option. But physical gold isn't always immediately liquid, and it has limited upside potential.

Let's say gold does go to $10,000 and you buy a bunch of gold at $1,750. That would net you a 470% gain, which is great. But it's nothing compared with the quadruple-digit gains investors can make in the right gold stocks in the right market.

Back in 2006, there was company named Aurelian Resources that owned a high-grade project in Ecuador. After releasing impressive drill results, shares of Aurelian went from about $0.70 to nearly $40.00 — that's a 5,600% gain. Every $1,000 invested would have turned into $57,000.

Last year, a group of mining and finance guys from Canada put together a new company, hoping to repeat that kind of success. They set out to explore a large gold project in Newfoundland with an ambitious drill program. They started drilling in August, and in October they reported the first drill results.

What they found was nothing less than incredible — amazingly high-grade gold intersected at substantial widths. The initial grades were as high at 93 grams per tonne (g/t) of gold.

To give that grade some perspective, gold ore for mining is generally considered high-grade if it has at least 10 grams per tonne. So what this company found right off the bat was super-high-grade material.

Then it did it again...

And again...

And again.

Through November and December, this company released news of several very high-grade drill results that ranged between 20 and 40 g/t gold.

Just a few days ago, it announced it's hit a hole that graded over 200 g/t gold!

This small company is, without a doubt, the most exciting gold explorer on the planet right now. It's still finding high-grade gold material, and it's doing it at a time when gold prices are set to explode.

The problem right this second, though, is the gold market. There's little interest in gold stocks right now. But as I mentioned, all that's temporary.

In short, it's the perfect time to start investing in gold — and this is the best-positioned gold stock on the market for massive gains.

By the way, some of the drill holes that helped the other company, Aurelian Resources, shoot 5,600% higher in 2006 included grades like:

  • 38 g/t over 11 meters
  • 97 g/t over 15 meters
  • 149 g/t over 12 meters
  • 24 g/t over 189 meters

So you can see why I'm so excited about this new small company now. I have recently put together a complete report that gives all the details of this small exploration company. You can access it here.

Gold is positioned to make its biggest moves in history. It's an opportunity you'll not want to miss.

Check out my new report, which could help you make the absolute most of this historic rally.

Until next time,
Luke Burgess Signature
Luke Burgess
Editor, Junior Mining Trader

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