The Golden Cycle Reemerges

Written by Nick Hodge
Posted June 10, 2020

You know the video promotions we send out? 

The ones that sell our premium research letters? 

Of course you do. 

They always cite the biggest gains possible for whatever sector is being discussed. 

All publishers do it. But some do it differently than others.

Take technology promos, for example. They tell you it’ll be like getting into Microsoft when Bill Gates still ran it out of his garage. 

Or in a biotech promo, they’ll tell you it will be like getting into Merck when it was founded.

Two things…

One, have you or anyone you know ever gotten in on the actual ground floor of what became a Silicon Valley giant — or any other giant for that matter? 

Two, Merck was founded in 1668. Were you investing then?

I’ve noticed something different about resource and precious metals promotions in particular…

Most of the gains cited in those promos usually center around specific windows of time.

You might think that’s because there are no household mining names. And you’d be partially right. Kinross doesn’t have the name recognition of Microsoft or Amazon. 

But the bigger reason is that gold stock gains come in cycles. You wouldn’t want to hold them for the periods necessary to deliver the same returns as a Microsoft. 

And you don’t need to… because when the cycle starts, gold stocks deliver similar type returns in much shorter windows of time. 

Take Kinross. Right now it trades at $6.00. It also traded at $6.00 in 1997. Big whoop. 

Kinross Historic Chart

But in between those times, it went as low as $0.37. And after hitting that low went straight up to $27.40. 

Kinross Historic Chart 2


That’s a gain over 7,300%. On a major U.S.-listed stock. In seven years. 

You didn’t need to be Bill Gates' friend. 

You didn’t need to time travel to the 1600s. 

You just have to buy quality gold stocks at the beginning of a gold bull cycle. Not "the" bull cycle, "a" gold bull cycle. There have been several in the past and there will be several more in the future.

And guess what? 

We just happen to be at the beginning of a gold bull cycle. Look at that first chart. It's not hard to see Kinross is on its way back to the $20s.

When they’re making gold newsletter promotions in 20 years… they’re going to be quoting today’s prices as the lows. 

Especially for gold stocks like these. 

Now is the beginning of the cycle when thousands of percent are made. 

Call it like you see it,

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Nick Hodge

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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.

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