When Everyone Was Scared... They Bought Gold

Written by Nick Hodge
Posted February 7, 2018 at 12:06PM

I’ve been telling you a few things…

Primarily, I’ve been telling you about a small gold mining stock that I think has an incredible future.

But I’ve also been warning you about cryptocurrencies. You’ll remember last week I declared the whole crypto thing had “gotten out of hand.”

On December 14, 2017 — two days before Bitcoin topped out — a video was released in which I warned about Bitcoin's steep ascent, and that it had not yet been tested the way gold has for thousands of years. 

Let’s check in, shall we.

If you bought Bitcoin any time after November 20, 2017 and still hold it — you have lost money. In that same time, the gold stock I won’t shut up about has gone up 38%.

Nicks Gold Stock 90(Click to Enlarge)

But that’s not really fair since I didn’t start telling you about this gold stock until January 10. 

Since that day, my gold stock is up 68% and Bitcoin has lost 45% of its value.

Nicks Gold Stock 98(Click to Enlarge)

A few points…

Think back over the past few months and think of how many newsletter gurus urged you to buy Bitcoin and other cryptos. Not only were they late… but they’ve probably cost you money. My main questions were:

- Where were these guys when Bitcoin was under $1,000, i.e., before 2017?

- How are they all of a sudden experts in something that is so new and evolving every day?

This is not meant to rag on cryptos and folks who got sucked into the hype.

Rather, this is to illustrate that cryptos are still really new. Really exciting. Really volatile. And it’s really hard to figure out what they’re worth because — let’s face it — they have no inherent value by themselves.

Their trading action this week proves that cryptos are not a store of value. They are merely a way to expedite and make transparent transactions.

But gold has been tested as a store of value and as fungible money for thousands of years. It maintains while everything else fluctuates. That’s what gold does throughout generations.

So when all hell broke loose this month, sending markets on their biggest one-day point plunge ever, gold just sat there. In fact, on February 5th, gold went slightly higher.

When push came to shove… when markets were going down further and faster than they ever have before…

What did people buy?

They bought gold.

They sold computer stocks and streaming video stocks and virtual reality stocks and weed stocks and cryptos because…

Gold is the true store of value.

That’s why I’ve been telling you so much about this gold company.

I think it’s found what could be the biggest gold resource in the country.

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.

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