The New Gold Bull Market

Written by Nick Hodge
Posted March 27, 2019

Gold has been asleep at the wheel for seven or eight years.

Even its most ardent supporters are questioning their allegiance. I’ve talked to brokers who’ve gotten out of the space entirely. The cannabis commissions are easier, more plentiful, and the stocks have actually been going up.

There’s really been no reason for anyone to pay attention to gold after it did its thing post-2008. Free money from central banks has been enough to prop up the stock market and the economy such that everyone forgot about their pet rock.

Now, 10 years after the last major crash — and as we now ride the single-longest bull market in history — memories are starting to be restored in key areas.

For starters, Fed Chair Jerome Powell went on 60 Minutes a few weeks ago to tell the nation it could kiss 3% growth goodbye — a continuation of his dovish tone since stocks got whacked in December and an obvious indicator to anyone listening that there would be no rate raises this year as formerly planned.

And sure enough, the Fed met last week and said just that. It is essentially admitting that even after a decade of record stimulus and unprecedented tinkering with monetary policy, the economy will fall over without central bank training wheels.

At this point, the Fed has lost all credibility. Just a few months ago, it said all was well, the economy would be growing, and there would be multiple rate raises this year.

Now it's admitting the exact opposite is true. And central banks globally have realized they’ve painted themselves into a corner. I’m betting you see more rate cuts before any raises.

Central banks know the end game is approaching. The global elite have gluttoned themselves on rising stocks for 10 years, and the cycle is about to go the other way.

Which is why central banks bought more gold in 2018 than in any year since 1971 — when Nixon took us off the gold standard and gold went on an 1,800% run from $35 to over $675 per ounce.

Central banks purchased over 651 tonnes of gold last year. This comes at a time when global gold production only increased by 30 tonnes from 2017 to 2018.

Reach back deep to remember what happens when demand outstrips supply.

Prices rise.

That’s already happening. Gold prices have been breaking out since late 2018, and have touched their highest point since last May.

Major takeovers and jostling between gold mining giants like Barrick, Randgold, Newmont, and Goldcorp also point to major change afoot in the sector — especially as the pace of major new discoveries continues to fall, which will put further pressure on the price equation.

We are out with a forecast from Mr. James Dines — "The Original Gold Bug" — calling for a new bull market in gold that could take prices as high as $9,500 per ounce.

In it, he shares:

  • Five looming global events that are fueling an economic “Perfect Storm.”
  • The reasons why this storm could push gold up to $5,000, and perhaps even $9,500 an ounce on a spike, depending on how governments react.

He also has a list of 10 precious metals stocks that will perform even better than bullion, coins, or funds... and in past gold bull markets turned in profits as much as 42 times over.

See the full forecast here: Historic Gold Spike Ahead.

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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