Why Now Is The Time For Gold
I know one thing is certain. Some big things are starting to happen in the financial world right now and the end result is going to be that a few people are going to make fortunes while many miss out. In fact I am worried that if the time of troubles that everyone feels is coming hits then not only may you miss out, but you may end up losing your nest egg too. For those positioned correctly though the crisis may prove to be bring their greatest opportunity. You see in every big financial event there are always a few with the foresight to make an absolute killing.
Over the next few years I believe inflation is going to pick up and drive gold prices higher to the substantial benefit of gold investors.
Now I do not think the US stock market is on the verge of crashing just yet. But I do think that eventually in a few years we are going to see interest rates jump to the detriment of US stock market investors in a response to inflationary pressures.
Look the US government is running trillion dollar deficits and the Fed is being forced to print money out of thin air to help finance them. Ten years ago China financed most of the deficit, but the deficit is so big now that they just don't have the money to finance it anymore and neither does anyone else. So Bernanke is printing money out of thin air to bridge the gap. He calls it quantitative easing, but that's just a fancy term to sugar coat the fact that it is nothing but a Federal government debt money printing operation and once too much money chases too few goods you get inflation.
We are already seeing inflation in our daily lives at the gas pump and the grocery store. The government uses statistical games to hide what we know is real in their so called consumer price inflation numbers, but eventually the inflation will show up in there too - people will buy gold to protect themselves. Eventually the Federal debt is going to get so big that foreign investors will begin to see risks in it ever getting paid. They will then demand higher interest rate payments in return for buying US Treasury bonds. Once that happens bond prices will drop, interest rates will spike, the economy will slow again, and the stock market will crash. People will buy gold in panic.
Now we aren't at that point yet. I don't want to scare you, because you don't need to be scared. I think the time of troubles is still a few years off. And if you are in gold you won't need to worry, because you will only benefit if the shit hits the fan. A few people on Wall Street made fortunes by betting against mortgage securities in 2008. They did complicated stuff to do this. But to make money in this next crisis you just have to know how to invest in gold - and do so the right way.
Gold is also more than simply a way to make money. Gold is a fortress that can protect you in times of financial crisis. Gold is real money. Every single currency in the history of man has suffered from inflationary pressures. If you paid a dollar for something in 1950 it would cost you $9.54 today. That's inflation. I own a house, a bunch of land, foreign stocks, and exchange traded funds, but I consider my gold bullion position my personal Fort Knox, because no one can take it away from me and inflation only makes it go up in value. I cannot adequately describe to you the peace of mind that comes from just owning a little bit of gold. You need to experience it for yourself.
Ok, now there is a big reason why despite having made tons of money in the US stock market over the years I am now telling people to forget about US stocks and look at gold. It's important for you to understand this so you will know why now is the time for gold. It has to do with repeating long-term cycles in financial markets that are going to have a huge impact on gold and the stock market over the next few years.
In financial markets you see important market trends. In bull markets a market goes up year after year and in bear markets it drops. These are bull and bear market trends.
Now you also have long-term bull and bear trends that last ten years or longer. They are called secular trends. Inside of those secular trends you get smaller bull and bear market trends that can last 1-5 years. These are called cyclical trends.
This is important because during the 1970's the US stock market was in a secular bear market. It was the time of Jimmy Carter, oil price shocks, and inflation. When that bear market ended it the DOW went straight up for 20 years with a few short cyclical bear market pause periods during that time. It's now in a secular bear market once again.
Now the stock market has gone up for the past few years, but that's a cyclical bull market that started in 2009 within a secular bear market that started in 2000. The US market averages as a whole have not gone up in any meaningful way above the highs they set in 2000. The US stock market has in fact had two devastating bear markets since then and will likely have at least one more before this secular bear market trend is over.
Gold on the other hand made a major secular bear market bottom in 2001. Since that bottom it has gone up year after to new highs with three short-term one year plus pauses that started in 2006, 2008 and in 2011. After each pause gold took off like a rocket.
The moment to buy gold is now, because gold is in a cyclical bear market pausing time right now. Once this pausing time comes to an end, and I think it will within a few months, gold prices will begin to rocket up again to new highs and make another huge leg up in its secular bull market. That means that gold prices can easily double or even triple from current levels once this new bull leg starts. That's why this moment in time as you are reading this is so critical. It's why you are smart to know to be reading this now and why I'm spending a lot of time talking to you about gold right now.
Secular bear markets end by causing stocks to get so cheap on a fundamental basis that they get in a position to go up for years. Now what is important for you to realize when it comes to gold is that secular bull markets end in a mania. At a top you can see things get so expensive that people literally will pay any price to be a part of the market. This is what happened to Internet stocks in 1999.
Now if you are old enough to remember the 1970's than you'll know that gold also had a manic period back then that coincided with the end of its last secular bull market.
During the 1970's secular bull market in gold, gold prices went from $35 an ounce to $850 an ounce in ten years. In 1979 gold was $350 and more than doubled in six months. Straight up moves like that happen at the end of a secular bull market.
We have yet to see such a straight up move happen in this secular bull market for gold, but it will. In fact I think this next cyclical bull market once it starts has a good chance of ending in such a giant climatic rally in a few years. This next move could be the start of the big one.
Now can you see why I'm telling people to forget about the US stock market right now? It's not so much that I think the stock market is going to crash overnight, but I just don't think there is a big potential to profit in it when you compare it to the potential investing in gold can give you. Imagine what it would have been like to have made money in the Internet stock mania. Gold provides us with the same opportunity right now.
I want to thank you for having enough interest in gold and faith in me to follow my website. This is not just a one shot deal for me. I promise to you that over the coming months and into the future I will send you updates to alert you to important developments in the gold market - and moves I make. This is just the start. This gold boom is going to go on for the next few years and we are going to be in it together.
If you want to start to build your own position in gold by taking some gold bullion positions than you should send for the Regal Assets free gold investment kit. To get your kit just fill out this form:
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