Mr. Dines: Gold's Next Great Upwave

Written by James Dines
Posted June 15, 2019

Publisher's Note: The precious metals sector is heating up and poised to break out. As "The Original Gold Bug," no one has the depth of experience and knowledge that Mr. James Dines has.

Read on for an excerpt from The Dines Letter for his latest analysis.

Call it like you see it,

Nick Hodge Signature

Nick Hodge


"Well begin is half done"
                  —Aristotle

When stock markets decline, our strategy has been to seek areas that could weather the storm. Frightened investors look for “safe haven” areas, which could become profitable during downturns.

We have already seen some havens rising: as examples, U.S. T-Bonds, utilities (the only leading average having made new all-time highs recently), pot stocks, and cryptos. Contrasted with declines in real estate, crude oil, base metals, and junk bonds, the picture suggests a gathering economic storm; only buy carefully.

There are also surely some currency storms ahead. Trump announced tariffs on nations that had purportedly suppressed the value of their currencies to undercut the U.S. dollar. Actually, that scam has been going on since the 1960s — Japan pioneered it with a purposefully cheap yen, plus the subsequent manipulations of other currencies, enabling the unseating of America’s then-world dominant automotive industry.

The current paper-money system is hopelessly corrupt, with governments printing paper currency in unlimited amounts, backed by no substance of value. The truth is, this ruse is headed for its end, which might not be entirely pleasant especially for those not owning some assets with proven currency value, such as gold.

Nobody should look forward to those times, as the subsequent restructuring would be more of a problem than current tariff upheavals. Even government economists are openly frustrated that they have been unable to control what they call “inflation” any more. For example, unprecedented in modern times, economists recently called for the general public to submit new ideas regarding monetary policy. If Keynesian economics does not work, they seem to tremble at what “might” replace it. Indeed, the very widespread interest in socialism these days is a manifestation of the troubles of a flawed currency system.

However, we are confident that the next currency would work fine to the extent it is based on something of value — anything — gold, barrels of oil, or land.

The answer economists now won’t even consider is a link to gold, but when their moment of comprehension at last emerges, the torrent of paper money gushing into havens will be epic. Gold and silver are the ultimate havens, historically accepted worldwide.

We had been puzzled by their flatness for a while, although they are just now beginning to move up! With Gold’s Upside Breakout, things are going much as predicted. We already have been urging you to invest in precious metals, as a hedge, but now buying in gold and silver shares should be expanded.

As “The Original Gold Bug,” we’ve seen many upwaves in our time. Gold miners have been “highgrading,” and stingy with paying for exploration and development, as we have seen before all previous gold upcycles. When gold demand inevitably rises, miners need years to ramp up production shortages, adding to the biggest gold upcycle of them all!

We have long predicted the upcoming one would be bigger than any of the previous ones; adding to your gold and silver positions would enable you to benefit even more when it arrives.

Our challenge is how to lead loyal, long-term readers through the minefields ahead.

The truth is we still view pot and hemp as exceptions, since reasonably-priced pleasure and wellness substances during the penny-pinching times that might be ahead might still be bought — as with liquor during what we call the “First Great Depression.”

Above all, control your emotions. Rereading your Secrets of High States book is your light, as calm planning is always a good beginning.


James Dines is legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He is the author of five highly regarded books, including "Goldbug!," in addition to his popular newsletter, The Dines Letter, and videotaped educational series. Dines' highly successful investment strategies have been praised by Barron's, Financial Times, Forbes, Moneyline, and The New York Times, among others.

Investing in Marijuana Without Getting Burned