A Terrifying Threat Too Real to Ignore

Written by Jason Simpkins
Posted January 13, 2017

Publisher’s Note: To learn more about the legend of Mr. James Dines, simply read our updated resource page.


Nick Hodge

Publisher, Outsider Club

Back in the 1950s James Dines walked into his office at 18 Wall Street, New York, NY, and was promptly told to pack his things.

He’d been fired for making bullish gold predictions.

You see, Mr. Dines firmly believed the U.S. dollar would be devalued. This view was widely considered "treasonous" in the era of Joseph McCarthy. But he talked about it incessantly in the newsletter he wrote for financial brokerage AM Kidder & Co.

Furthermore, Mr. Dines predicted that gold would enter into a "historic bull market," rising from government-fixed levels of $35 to "over $400."

This was another unacceptable opinion of the day. It was ludicrous. It was contemptible. It was crazy. It got him fired from his job.am kidder cropped

But it was right.

Over the next decade and a half, gold prices soared from $35 per ounce to a peak of $486. The yellow metal never again fell below $272. Silver, meanwhile, skyrocketed from 92 cents per ounce to more than $20.

James Dines was right. The man who Barron’s would one day call "The Original Goldbug" proved the doubters wrong.

He made a lot of people rich in the process, too.

And that was just the beginning…

An Astonishing Track Record

After being fired from his job at AM Kidder in 1960, Mr. Dines struck out on his own, self-publishing his investment newsletter.

He used the space to tell anyone who cared to listen that a crisis was coming, that gold would rise, and that it’d take silver with it. Subscribers who listened profited from a 2,025% rise in gold prices in just seven years and 1,639% surge in silver.

However, after the meteoric rise gold experienced in the 1970s and 80s, prices slipped back under $300 per ounce in the 90s.

Almost overnight, goldbugs like Mr. Dines went from being right, to an object of derision and scorn once more.

It would have been easy for James Dines to take his fortune and disappear to some obscure island in the Caribbean, but that’s not what he did.

Ever faithful to his mission as a self-described “reporter,” Mr. Dines continued to make his silly gold predictions.

“Buy,” he insisted in 2001, when gold was trading at $288.

Once more, the metal rose, peaking at $1,917.90 in 2011.

Now, I know there are skeptics out there.

There are critics (some of the same people that called Mr. Dines crazy to begin with) that will argue this was all luck. After all, if you predict gold prices will rise for more than 50 years, you’ll eventually be right at some point… Right?

But it’s not just gold and silver that James Dines has been right about. His insight extends far beyond that.

Just to give you an idea...

In 1977, James Dines predicted China would be a “major new economic force” and come to “dominate the 21st century,” making it the “The Chinese Century.”

Predictions like that these days are rote. But when Mr. Dines made such a bold claim, China’s GDP was just $175 billion, a mere fraction of the $11 trillion dragon we see today.

Indeed, Mr. Dines’ China warning was laughed at and dismissed just like his gold predictions.

Another case study…

From the First Edition of his 1975 book, The Invisible Crash:

“A truth of financial reality is that any prosperity build on paper money has usually been fun for a while, but has always ended in catastrophe. In the 1920s (as in the 1960s) the stock market was fueled by surplus paper spilling over from banks, which borrowed it from the U.S. Treasury, which had borrowed it from itself. It is inconceivable that the same unwise mistakes made in the 1920s were repeated in the 1960s. The question that remains is, will I be able, in some slight way help prevent it in the year 2008.”

Yes, James Dines predicted an overabundance of paper money (i.e. excess liquidity from the Federal Reserve and banks) would create a bubble that would inevitably burst in 2008… and he did it in 1975.

Not only that, but on January 14, 2005, Mr. Dines warned explicitly of “The Coming Real Estate Crash of 2007” saying it would teach a lesson in illiquidity and shake the mortgage market to its roots.

This prediction, yet again, proved to be devastatingly accurate.Invisible Crash

Mr. Dines was even the first prominent analyst to get his followers into the still-illegal marijuana market.

He predicted that the use of medical marijuana would be legalized by many states. It’s now legal in half the country.

At some point, you have to stop laughing at an oracle and start adhering to its wisdom.

That’s why I don’t laugh when Mr. Dines speaks, I listen.

And right now, the Great Mr. Dines is issuing another urgent warning

As you no doubt know, America is saddled with nearly $20 trillion of debt.

And that figure doesn’t even take into account our “unfunded liabilities” like Medicare, Medicaid, Social Security, and student loans.

Nor does it take into account the massive spending programs the incoming Trump administration already has in the works.

We’re talking about trillions in infrastructure spending on roads, bridges, and walls. We’re talking about a complete overhaul of the health care system. And we’re talking about massive tax cuts that will reduce federal income.

It’s all coming, and faster than you can imagine.

Our debt is huge and growing (by nearly a trillion dollars a year). And there’s no possible way to pay it down. World trade is such that we could not possibly earn that much money exporting to other nations, particularly since they are more interested in exporting into our market.

Before long, payments on the debt will become the third largest item in the federal budget. Something is going to break…

This is the concern of every American, but Mr. Dines especially.

For decades, he’s described all paper currencies as “a bunch of staggering drunks holding each other up.” And now more than ever he believes that a massive currency crisis is on the horizon.

That, too, will happen sooner than you think.

Given his track record, I’d encourage every investor to heed this warning.

I’d also encourage you to check out our latest report on the subject.

It tells you everything you need to know about Mr. Dines, the coming currency crisis, and most importantly how to protect yourself.

You can access that here.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of The Wealth Warrior, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

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