It’s Time to Get Your Gold On

Written by Nick Hodge
Posted July 1, 2020

Gold touched $1,800 for the first time in eight years. 

Many of the largest gold mining stocks — Barrick, Newmont, FrancoNevada, Wheaton Precious — are up 60% to 90% in the past year. 

Gold Mining Stocks June 2020

That means they’re moving 2X to 3X higher than the “record setting” NASDAQ. 

And this is only the beginning. 

Now that gold is at $1,800, a few new factors come into play…

First, from a technical perspective, if they can hold this level then gold prices can quickly move toward all-time highs north of $1,900 per ounce. (Gold prices are of course already at all-time highs in many other currencies that don’t have a Fed to fight.)

Second, gold is starting to gain mainstream attention and recognition. Gold Ultra Wealthy

In a mid-June article, Reuters reported that: 

As stock markets roar back from the coronavirus-led rout, advisers to the world’s wealthy are urging them to hold more gold, questioning the strength of the rally and the long-term impact of global central banks’ cash splurge.

Before the COVID-19 pandemic, most private banks recommended their clients hold none or just a tiny amount of gold.

Now some are channelling up to 10% of their clients’ portfolios into the yellow metal as the massive central bank stimulus reduces bond yields - making non-yielding gold more attractive — and raises the risk of inflation that would devalue other assets and currencies.

While gold prices have already risen 14% since the start of the year to $1,730 an ounce, many private bankers bet that gold — a hedge for both inflation and deflation — has further to run.

The mainstream media recognizing gold as a hedge against both inflation and deflation?

Who woulda thunk it? 

And look at how much these banks are recommending their clients hold in gold: 10%!

According to the article:

Nine private banks spoken to by Reuters, which collectively oversee around $6 trillion in assets for the world’s ultra-rich, said they had advised clients to increase their allocation to gold.

Now, let’s do some rough math. 

Ten percent of $6 trillion is $600 billion. 

And that’s just from nine banks. 

Now consider that the total combined market capitalization of the top 25 global mining companies is not much more than that — something like $800 billion. 

When money comes rushing into the gold space like is starting to happen… there are simply only so many places for it to go. 

And that’s why you get the drastic upward price moves in gold stocks. Or what Doug Casey has famously referred to as “trying to siphon the Hoover Dam through a garden hose.”

That’s the sort of rush we’ve been calling for. And that’s what is happening now. 

Just in the past three months, many gold stocks we have financed or recommended are up 100% to 500%. 

Gold Junior Mining Stocks June 2020

We expect new all-time highs in gold prices. 

And we expect multiples of the returns we’ve already earned. 

It’s time to get your gold on. 

Call it like you see it,

Nick Hodge Signature

Nick Hodge

follow basic@nickchodge on Twitter

Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

*Follow Outsider Club on Facebook and Twitter.

Heal Your Ailing Portfolio Body