Why Gold Is Going to $3,000
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| Day 2 of our virtual Stansberry Conference… Why gold is going to $3,000… John Doody’s bullish case… The only monopoly that Congress should break up now… Ron Paul: Politicians ‘always make things worse’… What it’s like being ‘Putin’s No. 1 foreign enemy’… |
‘This is the house that gold built’…
As we said in yesterday’s Digest, we wouldn’t mind being in Las Vegas today like usual for our annual Stansberry Conference. But we must admit that a fully virtual version of the event comes with some unintended extra benefits…
You can watch from wherever you want, whenever you want… You don’t need to travel… And you can see different sights – like where our editors and special guests live and work.
Take Gold Stock Analyst editor John Doody, for example… From his bright, spacious home in Fort Lauderdale, Florida, John delivered his presentation earlier today on why gold is going to $3,000 and how best to profit from the rise.
“This is the house that gold built,” he said.
At one point, John held up a single gold coin to help him tell the story…
John was studying for his MBA in finance at Boston University back in 1971, when he visited his grandfather, a retired schoolteacher, over Labor Day weekend in New Hampshire. During the trip, John’s grandfather gave the coin to him…
This was the same year that President Richard Nixon had taken the U.S. dollar off the gold standard for good. The coin was worth $20 back then, and his grandfather (a “tightwad,” John called him) said…
Hold on to this, John. It’s going to be worth something.
John’s grandfather, of course, was exactly right…
Today, the one-ounce gold coin is worth $2,000. John pointed that out as he showed it off for all conference attendees to see (and hear, when he put it down on his desk).
Few people know how to value gold and gold stocks better than John…
Longtime readers of financial newsletters know John’s work in the pages of his Gold Stock Analyst publication is legendary. He recommends a set of the finest gold stocks and gives amazing analysis of the industry every single month… as he has done for the past 26 years.
Since starting the publication in 1994 after leaving his job as a college professor, John has not only helped subscribers make incredible profits, but he also made enough money for himself to increase his net worth from five figures to eight figures today.
“That’s why I’m in this house,” he said.
The price of gold has risen dramatically over the past five decades… John calls it a 50-year bull market. And with what’s going on today – namely, politicians debasing the U.S. dollar more and more – he only sees the relative value of gold climbing much higher.
John believes gold is heading to $3,000 per ounce…
And he says that’s a very “reasonable” price. It will likely go higher in the years ahead. As John told attendees today, there’s one big reason why…
What keeps driving gold? Politicians. The politicians’ No. 1 goal is to get reelected. Nothing else matters more than that. They always promise more than the economy can deliver. They always try to get nine slices out of an eight-slice pizza.
As we’ve written in the Digest throughout this year, a “hard” asset like gold – which can’t be printed or created by the Fed or Congress – holds its value through all the meddling from politicians, while that of the U.S. dollar goes down.
And this year, that has been happening at an extreme level… We’ve seen record fiscal stimulus, as well as more of the same rock-bottom interest rate policy and new liquidity programs from the Fed.
The federal budget deficit is now more than our gross domestic product (“GDP”) for the first time since World War II… And the Congressional Budget Office predicts that U.S. government debt will be 195% of GDP by the year 2050.
John points to the last two big legs of the current bull market in gold to see what could happen to prices next…
From 2001 to 2004, following the dot-com bubble when the Fed slashed interest rates, the price of gold rose about 50% to around $425 per ounce… And from 2008 to 2011, the start of the quantitative easing (“QE”) era combined with low rates, gold prices rose from $821 to $1,883 – an incredible 129% gain in about three years.
If the price doubles from this year’s bottom of just less than $1,500 per ounce in March, it would hit $3,000.
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Here’s the important part, though…
As the price of gold rises, the value of gold stocks can rise exponentially, too… This is how John and his subscribers have made massive profits through the years.
John will be the first to tell you that a lot of gold stocks aren’t worth owning. They suffer from bad company management, bad mine locations, or any number of other flaws.
If you’re a believer in John’s thesis, you should own shares of the best gold stocks – the best cash-producing names in the business – so you can enjoy returns that are much more lucrative than if you owned gold itself or a broad gold stock index. As John said…
The reason is reserves in the ground. A typical mining company’s reserves is 10 times its annual production… If the price of gold goes up $1, [the value of its] reserves go up 10 times. That’s where you’ve got the leverage to the gold price.
John’s results speak for themselves…
Since 2000 through the end of 2019, his Gold Stock Analyst portfolio of high-quality gold stocks has returned an average of 23.7% per year. That’s twice the return of the S&P 500 in the same period… and seven times higher than the Philadelphia Gold and Silver Index (“XAU”).
As John spoke, he said the cumulative return of his recommended portfolio since 2000 was 1,211%. From this past March through September alone, the Gold Stock Analyst Top 10 is up 112%… And John projects an additional 170% upside if the price of gold hits his current targets.
We don’t see any reason why it shouldn’t, really…
We didn’t have to go far today to find more evidence…
A few hours before John’s presentation, American Consequences Executive Editor Buck Sexton interviewed former presidential candidate Ron Paul, who ran down the long list of reasons why the U.S. dollar continues to be debased.
Paul, who had a very visible health scare a few weeks ago, said “I’m feeling good.” He explained that he hoped this interview showed people “that I’m doing quite well.”
We agree.
And what Paul said today only makes too much sense for anyone in Washington to understand…
While Congress is worried about whether Big Tech companies like Amazon (AMZN) or Apple (AAPL) are monopolies, it fails to realize – or acknowledge – that the government is running its own monopoly over our financial system and our money. As Paul said…
Everyone in Washington has been taught not about Austrian economics or sound money… [Instead] they’ve been taught about Keynesian economics and a lot of socialist economics, and that’s what they do.
Just today, Fed Chair Jerome Powell again urged Congress to pass more fiscal stimulus, saying the rewards outweighed the risks.
Politicians ‘always make things worse,’ Paul said…
This is why he has been heavily invested in gold for decades. When he was a congressman, as much as 90% of his portfolio was in precious metals, according to disclosures.
And it’s also why he supports the idea of cryptocurrencies like bitcoin. As Paul explained today…
Anything you want to use as money you should be allowed, it should be legal. I don’t want the government to have a monopoly on money…
We have to have freedom to go to something else, like cryptocurrency, or gold, or real estate. You have to have this freedom. People have to have their liberties to figure this out, because the politicians can’t. They always make things worse.
I (Corey McLaughlin) wonder what Paul’s son, Rand, who is still in Congress, thinks about that comment… In any case, Paul went on, explaining why he’s not a fan of Modern Monetary Theory (“MMT”) and similar macroeconomic policies over the last century.
Paul said we’re in the “greatest bubble in the history of mankind, and we keep adding to it” because…
The only thing [politicians] have to offer is more depreciation of our dollar. It seems like it will never end, but the truth is, it will end. I think we’re seeing the end stage of an experiment that has gone crazy…
The problem is that, for 100 years, we gave up on the notion and the understanding on what the role of government ought to be if you want to live in a free society.
Right now, I don’t think the majority of the American people are banging the doors and saying we want to live in a free society. No, they want their check…
That last statement reminded us of a scene we saw recently here in Baltimore…
This photo sums up a lot of the discussion of what’s happening on our streets today. It was taken by a reporter for a local TV station near where I used to live in the city…
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Today, we also heard from a man who calls himself ‘Putin’s No. 1 foreign enemy’…
If you think what you’ve heard about government corruption before was bad… or if you’ve been curious about what really goes on behind-the-scenes in Vladimir Putin’s Russia… today’s presentation from Bill Browder is a must-watch.
It was fascinating from beginning to end.
Browder is the grandson of the former head of the American Communist party. And in the 1970s, as a teenager looking to rebel against his own family, he thought of the wildest way to do it… become the biggest capitalist in Eastern Europe.
So began a series of events that took Browder to Moscow, where he created a wildly successful but short-lived hedge fund that blew up in 1998 as the Russian government defaulted on its bonds. Browder’s clients lost 90% of their money, and he wanted to make sure they didn’t lose the rest…
That’s when the real ‘stranger than fiction’ story began…
Browder left Russia, but later became caught up in the largest-ever tax scheme in the country… one that ultimately led to the murder of his friend… a nine-year jail sentence in absentia from a Russian court… and his campaign today to spread the truth of what’s really going on in the country.
Browder even revealed that the Russian lawyer who infamously visited Trump Tower in 2016 was sent there directly because of Browder’s story and actions. He spoke to our conference attendees from London, where he lives today, and it was well worth the watch. Among other things, Browder said…
In Vladimir Putin’s Russia, there are no good guys. In his government, there’s only bad guys.
But please don’t just take our word for it on everything we’ve talked about today.
We urge you to check out all the action from the conference yourself…
There’s so much valuable content that we simply can’t cover in the Digest. We promise you… we’re only scratching the surface of what John, Ron, and Bill said today – and all the great stories and investing ideas that have been shared throughout this year’s event.
Today’s lineup also included a conversation with former Secretary of Energy Rick Perry, as well as insightful presentations from Cambria Investment Management co-founder Meb Faber on “tail” risk and nationally syndicated radio host Jesse Kelly on why our country is so divided.
Retirement Millionaire editor Dr. David “Doc” Eifrig also interviewed bestselling author Nigel Marsh. He has written books on the ideas of life balance – like Overworked and Underlaid and most recently, Fit, Fifty and Fired-Up.
If you haven’t checked out our conference already, what are you waiting for? Click here to learn how you can access everything today – including all the replays. Watch whenever and wherever you want, too. Like we said, there are definitely some benefits to being at home.
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New 52-week highs (as of 10/5/20): American Homes 4 Rent (AMH), Autohome (ATHM), Dollar General (DG), McDonald’s (MCD), and The Trade Desk (TTD).
In today’s mailbag, a question from an Alliance partner looking to watch the conference. Do you have a question or comment? Let us know what’s on your mind by e-mailing feedback@stansberryresearch.
“I am living in Thailand. I have paid my fee for this event. How do I sign in and view both in real time and later?” – Stansberry Alliance partner Al S.
Corey McLaughlin comment: If you’re having trouble accessing the conference, the best thing to do is call our customer service team. One of our representatives will be more than happy to help you (or anyone else) get everything set up to watch the presentations.
Since you’re in Thailand, call our number for international subscribers at 443-839-0986. And for anyone in the U.S., you can call 888-261-2693. Reps are available Monday through Friday, 9 a.m. to 5 p.m. Eastern time. You can also send a written message at any time through our Help Center page here.
All the best,
Corey McLaughlin
Baltimore, Maryland
October 6, 2020
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