Those are the words I (Chris) used to kick off the August 27, 2018, issue of The Daily Cut.
One of our go-to gold experts here at Legacy Research, E.B. Tucker, had just made a major contrarian call on a turnaround in gold.
It’s our mission here at the Cut to help you profit from moneymaking trends like this. So we immediately put it on your radar.
As you can see, gold was trading at $1,211 at the time. Today, it trades at $1,615. That’s a 33% gain.
Folks in the mainstream press claim it’s due to fear over the spread of coronavirus.
Here are just a few examples of what I mean…
-
“Gold tops $1,600 for first time since 2013 as coronavirus fears spur haven demand” – MarketWatch (2/18/2020)
-
“Gold scales two-week high as coronavirus hits business” – Reuters (2/18/2020)
-
“Gold Nears Seven Year High But Could Hit $1,700 on Coronavirus Impact, Citi Says” – Barron’s (2/19/2020)
But, as usual, the financial press is missing the real story.
As you’ll see in today’s dispatch, gold isn’t surging because of the virus spreading out of China.
It’s surging as investors start realizing that a contagious spread of central-bank stimulus is on the way. And they’re taking shelter from this currency debasement – by buying gold.
If you don’t know him already, Tom is one of the cofounders of Palm Beach Research Group along with Mark Ford.
Before starting his career as a newsletter writer, he worked for Salomon Brothers and Citigroup in London on the “repo desk.”
Repo stands for “repurchase agreement.” Without getting bogged down in detail, repos are types of loans that are typically backed by government bonds.
Tom is one of the few people in the financial advisory business with firsthand knowledge of the “plumbing” of the fiat-money system.
And right now, he’s one of the biggest gold bulls here at Legacy Research due to what he sees coming.
In 2018, Tom and his ex-wife sold their cars, canceled their cell phone plans, and handed back the keys to their apartments. Then, they left Delray Beach with just their three kids and a suitcase in tow.
As Tom explained it to readers of his Postcards From the Fringe e-letter…
We gave away all our possessions and belongings two years ago, turned all our savings into gold, and have been traveling around the world like fugitives running from the law, living out of a suitcase and hopping from town to town every few days.
Somehow we have to survive like this until the Dow-to-Gold ratio hits 5 [when you can buy all 30 Dow stocks for five ounces of gold or less] and we’re able to turn our gold back into stocks and begin collecting dividends again. I’m hoping that’ll be in less than 10 years.
I’m not telling you this because you should follow and bet all your wealth on a rise in gold. For 99.99% of investors, gold should make up a portion of your portfolio, not the whole thing.
I’m telling you so you know Tom is fully committed to his bullish call on gold.
Central banks are flooding the economy with newly created cash.
Take a look for yourself. This next chart shows that central banks have injected over $20 trillion into the economy…
And Tom believes that’s just the start. In the next recession, he says central banks will flood markets with trillions of dollars more in “stimulus.” Tom…
When you consider the government’s obscene consumption of cash… its inability to fund itself in the public markets… the Fed’s willingness to bail it out… and the likelihood of a coming recession, it’s clear to me the Fed’s balance sheet is going to grow by trillions and trillions of dollars over the next few years.
Unless it changes the way it injects liquidity into the economy – and it might – this “money-printing” will support bond and stock prices and trigger rising inflation.
Tom says he expects gold will be around the $10,000-an-ounce mark by the time this cycle peaks.
As I showed you yesterday, legendary currency trader Andy Krieger is warning about an “unprecedented” and “dangerous” currency move.
It will be the result of the same forces Tom has identified.
Andy shot to fame in 1987 after he “broke” the New Zealand dollar (the kiwi). He was just 31 years old. He was working for top trading firm Bankers Trust at the time. And he sold so many overvalued kiwis, he crashed the currency.
This became headline news all over the world. It caused such a stir in New Zealand, the country’s central bank asked Bankers Trust to stop Andy from trading its currency.
Andy’s trade netted a $300 million profit for his firm.
Andy later netted $1 billion in profits for a client who was a private speculator. It paid off when Germany’s overvalued currency, the Deutschmark, plunged against the U.S. dollar.
In short, Andy is one of the greatest living traders… with 33 years of experience profiting from currency market moves. And like Tom, he’s worried about all the easy money sloshing around the system.
As he warned in yesterday’s dispatch, when the next recession hits, central banks will unleash a tidal wave of new cash…
The Fed will implement even more aggressive levels of quantitative easing. It will balloon the central bank’s balance sheet to almost unimaginable levels and pump trillions more newly created dollars into the system.
Tom believes the simplest way to profit from this surge in stimulus is to buy gold. And he wants to keep it simple.
If he’s right, and gold surges to $10,000, that’s going to roughly 6x his investment.
If you’re looking for a way to protect the buying power of your savings, buying some physical gold now is a great plan.
Andy is taking a different approach. He’s not buying gold. Instead, he plans to profit the way he did with the kiwi and the Deutschmark. He’ll target unprecedented moves in currencies against one another.
He reckons the trades he makes when this currency move hits will make 30x gains. That’s enough to turn every $1,000 into $30,000.
He’ll be revealing all the details of what he sees coming… and how you can profit… tomorrow night in a livestreaming event that kicks off at 8 p.m. ET.
If you haven’t already signed up to attend, you can do so now here.
Regards,
 |
Chris Lowe
February 19, 2020
Barcelona, Spain
Like what you’re reading? Send your thoughts to [email protected].