Gold’s Telling Us Something Dangerous and Exciting Is Happening Right Now
Friday, 7 August 2020
By James Woodburn
‘Do you hold gold?’
It was a WhatsApp message I woke up to one morning a few weeks back.
It was from Giles, one of my old school mates from back home in the UK.
Funny question, I thought. Usually our texts are purely to share memes that would easily offend many a PC Warrior.
I could tell he was serious this time, though (excuse the language in advance)…
‘Thinking of getting some.
‘Sh*t is about to get mental in the markets.
‘Next 2-5 years are gonna be IV 1,000 clusterf**ks.’
Not sure exactly what he meant by that last one, but it’s telling especially considering he works for one of the huge investment banks in the City of London.
He’s not a trader or managing money directly, but he’s right there in the team dealing face-to-face with clients.
And while he and I agree on many things, one thing we’ve always had in depth (but wholly respectful and non-judgmental) chats about is the government’s role in the economy.
While I’m in no way an economics expert, my natural inclination is that that the markets and the monetary system are probably best left alone as much as is humanly possible.
Whereas Giles…he’s always been pretty adamant that the financial system needs help to move along. He’s a proper Keynesian. The key to preventing depression is to pump in more liquidity — no matter what.
But now even he is starting to question this…
‘Governments will do EVERYTHING to stop it, but they are running out of ways to intervene.’
I think we all know that’s the case. But they are too far in now to turn back. The system is now so dependent on central bank intervention that if you take it away, a collapse is certain.
Damned if you do, damned if you don’t. Either way, we’re damned.
Anyway, there are those who believe in the ability of governments to keep the economy going, like my mate Giles. Politicians will provide just enough stimulus and debt dodging opportunities to keep things looking good.
But the gold price says otherwise, busting through all-time record highs faster than even our own gold stock picker Shae Russell could hope for.
Gold knows something is going awry.
It could be an attempt to impose epic austerity to get the budget under control. Or a misguided stimulus package. Perhaps a mega onslaught of inflation (Greg, Murray and I discuss this a bit further down).
Whatever it is, it could be an opportunity in gold stocks that you’ll unlikely see again in your lifetime.
That’s what Shae believes. But she’s not got blinkers on. She believes a correction is due. And when that happens, get ready to buy.
This is why, right before the official Stage 4 lockdown on Wednesday, I jumped on camera here in my home office to announce the rebroadcast of a special presentation Shae and I delivered in mid-July on the gold market.
I decided to do this largely in response to a huge influx of emails we’ve received from Shae’s readers since
Here’s a quick glimpse of them here:
‘MAU 186% and still going! NML — 57% Kzr — took profits missed BC8 Gives me a great topic for friend get-togethers.’
‘Currently up/down as follows: CAI up 27% ERM up 7% ENR up 0.7% KZR up 136% S2R down 4% All good so far. Happy with the research and advise Shae.’
‘I really enjoy Shae’s service it is the best I have subscribed to. I find it educational and profitable. I am up over 30% on Shae’s recommendations.’
‘Shae Russel is thorough in her research, accurate with her predictions, very open and says it as it is. Her talks and interviews are always insightful and teach me a lot. The stocks that worked well for me are currently KLA 66%, KZR 80%, NML 26% and CAI 28% and some keep on giving!’
‘Hi Shae, love your video’s, your enthusiasm and energy just makes my day. I currently hold 8 of your recommendations all except one in profit, outstanding ones are CAI up over 30 % in 2 months and NES up close to 50% in 6 weeks. I am also holding Gold and Silver bullion up over 25% today. I have 2 of your Hard Rock recommendations, GOR and SAR both up over 50%. Keep up the good work.’
‘BC8 +125%; KLA +147%; KZR +426%; MRZ. -22%; NCM+87%. I don’t invest large amounts but getting into more gold shares at this time has allowed our total portfolio not to suffer as much during the recent downturn. Very pleased with the overall advice. Thank you.’
‘Shae is great. I sat in a daydream looking at a gold chart a year ago after watching her discuss the gold price. After about an hour the realisation hit me … she’s right! Big move up on the way! I’m about 10% up after her last 3 recommendations and I wish I had dived in sooner.’
‘Shae and James have alerted me to the world situation which allowed me to move money into gold which has given me much relief and also made me some money and possibly more yet to come also I have invested into some of the mineral resources company’s which are on Shae’s recommended list. All together your company has caused me to look at the current world situation and recognise that what Jim has said is correct and Shae has given me the tools and information to take advantage of the coming situation where as without this information I most likely would have been economically much worse off after the coming distraction. My thanks to you both.’
I’m not kidding. There were 53 letters in total. All praising Shae’s service, her gold trades and commentary on the gold market.
And then this week gold breaks the pivotal US$2,000 level!
You may remember Shae’s broadcast. It was a detailed presentation on the gold exploration boom taking place around Australia right now. It’s one of the few sectors alight at the moment.
Anyway, the info in that presentation is more pressing now than ever. So, at the last minute this week I decided to make it available again. If you didn’t catch it the first time round, this is your second chance.
Hit the play button below. It goes offline again on Monday night:
But Shae’s not the only one trying to figure out what the heck’s going on.
Our whole team of editors have been hard at it.
Catherine Cashmore is currently working on a real estate strategy course to help people take advantage of what she’s calling the mid-cycle slowdown, and the best opportunity to invest in residential real estate in years.
Ryan Dinse, as you saw last week, has already made a number of trades for his new readers of Small-Cap Momentum Alert. They are coming thick and fast, and predominantly in the resources sector. Membership to that service is now closed, but I’m hoping to reopen it soon (if you’re interested let me know here: firstname.lastname@example.org).
And Callum’s Catalyst Trader service is firing, too. He’s closed out of a number of trades in the last two weeks. The latest was on Tuesday. He took profits on a company called Family Zone Cyber Safety. He recommended it on 1 July when it traded for 20 cents. He sold out completely at 50 cents. That’s a 150% rise in the space of a month for those that acted on the advice.
It’s a tasty looking chart, too:
Callum is also getting some great praise from his current readers. And I hope to bring you more on his strategy for trading the markets in the weeks to come.
But for now, it’s time to look at the markets and see what’s going on. Yesterday, I checked in with Greg Canavan and Murray Dawes to do just that.
I asked them for their take on the move in gold, the prospect of a huge inflationary shock in the wake of all this money printing and whether the all-time highs in the S&P500 and NASDAQ are sustainable, or not.
As always, it was a fascinating chat. Simply click here, or on the play button below to watch it.
Have a great weekend.