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What happens to gold when you combine all of the following …
- Hundreds of millions of U.S. savers earning a pittance on their cash — even less than they lose each year to inflation …
- Countless bond investors overseas who don’t even make THAT much; their yield is BELOW zero (even before inflation) …
- The highest recession probability in more than a decade …
- Stable supply for gold and rapidly rising investor demand, plus …
- A huge surge in gold buying by central banks!
I’ll tell you what happens …
You get the most powerful gold
bull market of modern times!
This is not just a forecast of the future.
It’s already happening. And it’s barely in the first inning.
Look, I’m not a traditional gold bug.
There are times when I recommend you sell. And there are times I just prefer to recommend other investments.
But starting more than a year ago, I warned of more challenging times in the equity and risky bond markets ... and laid out a very bullish case for gold. See here, here, and here for examples.
If you followed that road map, you’ve done very well for yourself. Consider: In the last 12 months, just owning the SPDR Gold Shares (GLD) could’ve made you about 20%.
That’s more than TWICE the 8.5% you’d have earned owning the SPDR S&P 500 ETF (SPY).
And in another recent period this year, gold bullion absolutely crushed the S&P 500 — by 21 to one!
That’s bullion! In gold mining stocks, which can go up many times more than the underlying metal, the potential gains are MANY times greater.
Hopefully, you’ve enjoyed the fruits of those moves. But if I’m right about the overall market backdrop, you haven’t seen anything yet.
The overwhelming majority of potential buyers have NOT yet gotten on board with metals and miners.
There are still hordes of investors who think recession risk is off the table and that “chaos insurance” in the form of gold isn’t required.
My word to them: “Good luck with that!”
Until next time,
Mike Larson
