Gold prices are now getting comfortable in their new record territory north of $1,950 per ounce.
The flimsy foundation of global markets built on debt and low interest rates is getting battered by the winds of COVID-19.
Already weak, with corporate earnings slowing since 2018, the abrupt halt in business and the jobless devastation that came with it has forced government and central banks to provide protection to Wall Street and Main Street in the form of free money.
Like putting a new roof on a shaky shack, the weight of this new protection is proving too much for the entire foundation to bear.
All the pieces were already falling into place for a record gold bull market run before the virus. The virus simply expedited their alignment, lit a match, and poured some gas on it.
You can see that gas running down this chart of the dollar since the new money printing and stimulus began a few months ago:
I didn't get a first stimulus check... I won't get a second one... And I don't want one.
Those free dollars are now purchasing less. It now takes more dollars to buy groceries and many other things.
It now takes more dollars to buy corn and soy and copper and tech shares and, yes, gold. Are their prices rising or is the value of a dollar shrinking?
Yes.
And I don't believe we've seen the full extent of the upward move in gold prices. We certainly haven't seen it in gold stocks.
All the fundamental reasons will continue to strengthen and compound as the free money continues to flow like the salmon of Capistrano.
Remember, gold went to just over $1,900 in 2011 on the back of the last bailouts from self-inflicted Wall Street wounds.
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Several times more money has been printed this time.
As the fundamentals merge with mounting fear and greed... not only will we see more record gold gains...
But we will see record gold stock gains as well.
The kind that go from pennies to several dollars like you see in all the newsletter promotions.
Those penny gold stocks are going up now.
Fast.
I and my subscribers own a significant amount of them and have already done incredibly well this year.
The go-to gold mining ETF - VanEck Vectors Gold Miners ETF (NYSE: GDX) - is up 50% this year. You could simply own that and be outperforming the record-setting NASDAQ the hollow suits on TV can't get enough of.
But if you have the right info... you can buy individual gold stocks and do a whole lot better than that.
I have that info. I have done better.
And I don't plan on stopping.
This gold bull market has been a long time coming.
I'm loaded up on quality gold shares like this.
And I'm going to ride them until their natural conclusion at much higher prices.
Call it like you see it,
Nick Hodge
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.