Get Ready for the Biggest Gold Move in Years

April 19, 2017 Justin Spittler Research Analyst     Make the trend your friend. Every investor has heard this advice. It means that you should swim with the tide, not against it. In other words, don’t buy stocks that are in free fall. And don’t bet against stocks that are soaring. After all, a trend in motion tends to stay in motion. With that said, bull markets don’t last forever. The same goes for bear markets. This is important because you can make an absolute fortune by buying an asset as it exits a bear market and enters a new bull market. One of the safest and most proven ways to do this is to buy an asset right after it “breaks out” of a downtrend. Just look at what uranium stocks did when they broke out of a multi-year downtrend in December. The Global X Uranium ETF (URA), which holds 22 uranium stocks, jumped 45% over the next couple months. Here’s another example. This chart shows the performance of the VanEck Vectors Coal ETF (KOL) since the start of 2011. KOL invests in 27 coal stocks. Like uranium stocks, coal stocks were in a downtrend for years. But they broke out of that last September. Since then, the average coal stock is up 35%. • These are big gains for such short periods… Unfortunately, most investors never take advantage of these situations. That’s because they don’t realize that an asset’s broken out until it’s already up 30%…40%…or even 50%. By then, it’s too … Continue reading

A Corporate Debt Crisis Is Underway… And Nobody Cares

A Corporate Debt Crisis Is Underway… And Nobody Cares By Justin Spittler Investors no longer give a damn. That might sound harsh, but when things are this backwards, you have to tell it like it is. You see, I read something recently that disturbed me. I had to pinch myself to make sure I wasn’t dreaming. It was an article I recently stumbled upon in Bloomberg. In it, the author explained how U.S. companies are issuing debt at breakneck speed. You see, U.S. companies have already issued more than $360 billion worth of investment-grade bonds just this year. Corporate America is now on pace to issue the most investment-grade debt in the first quarter since 1999. I don’t have to remind you how that ended… But here’s the really crazy part… Investors are lining up around the block to buy these bonds. If you read yesterday’s Dispatch, you know where I’m going with this. In short, the bond market is unraveling. This isn’t some conspiracy theory. It’s a fact. And yet, investors are buying bonds by the fistful. These people don’t understand how much danger they’re in. Hell, they don’t even know what they’re buying anymore. I’ll explain why in a second. But first, let’s be clear about what “investment-grade” means. • Investment-grade bonds are bonds issued by companies with good credit… They’re the best corporate bonds money can buy. Investors like them because they’re supposedly “safe.” Conventional wisdom says you can own them and sleep well at night. At least, … Continue reading

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies

This Sector Is Set to Deliver 20-to-1 Returns… and That’s Just From the “Bad” Companies By Nick Giambruno “It was the single most important financial event of my career.” That’s what my friend Rick Rule of Sprott Global recently told me of his experience in the uranium market. Rick was referring to Paladin Energy, a uranium company that leaped from one penny to $10 per share during uranium’s last bull market. That’s a 1,000-fold increase. In other words, a $1,000 investment could have exploded into $1 million. Even the worst-performing companies in the uranium sector delivered 20-to-1 returns. Uranium can deliver these almost unbelievable returns because of unique supply-and-demand quirks that create colossal bull and bear markets. Here’s a quick rundown… and a closer look at how uranium’s coming bull market could hand you these kinds of life-altering profits. The 1950s Uranium Bull Market Uranium cycled through its first bull market in the 1950s. This bull was mainly driven by the nuclear arms race between the US and the Soviet Union. Back then, the only practical way an investor could get exposure was through uranium exploration companies trading on small regional stock exchanges, like the one in Salt Lake City (which closed in 1986). Those who did made a bundle. The Late 1970s Uranium Bull Market The uranium price increased more than tenfold during this bull market… from $3 to $43. Some uranium stocks shot up by a factor of 100. Greater nuclear power use was the main driver. It … Continue reading

Donald Trump, Saudi Arabia, and the Petrodollar

Donald Trump, Saudi Arabia, and the Petrodollar By Nick Giambruno February 22, 2017 Obama pulled out his veto pen 12 times during his presidency. Congress only overrode him once… In late 2016, Obama vetoed the Justice Against Sponsors of Terrorism Act (JASTA). The bill would allow 9/11 victims to sue Saudi Arabia in US courts. With only months left in office, Obama wasn’t worried about the political price of opposing the bill. It was worth protecting Saudi Arabia and the petrodollar system, which underpins the US dollar’s role as the world’s premier currency. Congress didn’t see it that way though. Those up for reelection couldn’t afford to side with Saudi Arabia over US victims. So Congress voted to override Obama’s veto, and JASTA became the law of the land. The Saudis, quite correctly, see this as a huge threat. If they can be sued in US courts, their vast holdings of US assets are at risk of being frozen or seized. The Saudi foreign minister promptly threatened to sell all of the country’s US assets. Basically, Saudi Arabia was threatening to rip up the petrodollar arrangement, which underpins the US dollar’s role as the world’s premier currency. Donald Trump and the Saudis Unlike every president since the petrodollar’s birth, Donald Trump is openly hostile to Saudi Arabia. Recently he put this out on Twitter: Dopey Prince @Alwaleed_Talal wants to control our U.S. politicians with daddy’s money. Can’t do it when I get elected. The dopey prince that Trump is referring … Continue reading

How to Double Your Money 94% of the Time…

How to Double Your Money 94% of the Time… By Justin Spittler Editor’s note: Today, we’re taking a break from our usual commentary to share a must-read piece with you. In the essay below, International Speculator editor Louis James pulls the curtain back on a money-making phenomenon. As you’ll see, this strategy has generated average gains of 133%. More impressively, it works almost 100% of the time. This is the first time we’ve shared this powerful secret with our readers. We hope you find this essay as eye-opening as we did. What would you say if I told you of an investment strategy that more than doubled your money within two years, 94% of the time? First, a confession. I’m about to tell you something that’s rather obvious. The phenomenon is well known. Despite that, I never did the math before. To my knowledge, no one has ever bothered, but that’s no excuse. So, while I knew it was a factor—I’ve even made recommendations to profit from it—I didn’t realize just how powerful this approach is at generating maximum gains for minimum risk. Albert Einstein was famous for urging us to question everything. He once said, “I have no special talents. I am only passionately curious.” The strategy I’m about to describe has been “hiding in plain sight.” Doug Casey told me about it when I first started working for Casey Research. But I never asked: “What’s the average gain?” My apologies. Now, let me explain. Do you remember the … Continue reading

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits

This Super Bubble Is About to Burst… Here’s How to Make Huge Profits By Nick Giambruno Italian government bonds are in a super bubble. They are primed to collapse soon. Italy has one of the most indebted governments in the world. It’s borrowed over $2.4 trillion, and its debt-to-GDP ratio is north of 130%. (For comparison, the US debt-to-GDP ratio is 104%.) But the situation is actually much worse. GDP measures a country’s economic output. However, it’s highly misleading. Mainstream economists count government spending as a positive when calculating GDP. A more honest approach would count government spending as a big negative. In Italy, government spending accounts for a whopping 50%-plus of GDP. A more accurate debt-to-GDP ratio would exclude government spending from economic output. I suspect that figure would reveal the Italian government’s hopeless insolvency. I don’t see how it’s possible for the Italian government to extract enough in taxes from the productive part of the economy to ever pay back what it’s borrowed. Yet Italian government bonds are trading near record-low yields. It’s a bizarre and perverse situation. Over a $1 trillion worth of Italian bonds actually have negative yields. That’s completely insane. Given the huge risks associated with lending money to the bankrupt Italian government, the yields on Italian sovereign bonds should be near record highs, not record lows. Source: Zero Hedge Italian government bonds are, without a doubt, in super-bubble territory. It won’t be long before a pin pricks it and… pop. A critical vote in … Continue reading

This Will Be The Catalyst For Higher Gold Prices – Rick Rule | Kitco News

Published on Oct 3, 2016 With gold prices wavering ahead of the U.S. election and a potential interest rate hike by the end of the year, investors are trying to decipher where the metal is headed next; according to famed investor Rick Rule, bullion is moving higher. “The catalyst for it going higher is simple: zero interest rates and negative interest rates,” the chairman of Sprott U.S. Holdings told Kitco News at the Mines & Money event. “Frankly, I think interest rates will be more important to the gold market than either Clinton or Trump.” He noted that the Fed is “trapped” and continues to be “addicted” to low rates, which will bode well for gold. … Continue reading

Weekly Bulletin: The Rally of 2016—Over or Just Getting Going?

  BULLETIN October 10, 2016 Weekly Bulletin: The Rally of 2016—Over or Just Getting Going? Dear Speculators, Last week’s 4.5% retreat in gold prices hit gold stocks hard. The VanEck Vectors Gold Miners ETF (GDX) dropped about 11.5% and the VanEck Vectors Junior Gold Miners ETF (GDXJ) about 13.5%. This share price action is normal: Resource stocks always move with high leverage to the underlying commodities. What may seem abnormal, but has been par for the course for some years, is for the paper gold market to overreact to verbal testing of the waters by the Fed. Nothing has actually changed. Still, paper traders in New York reacted to a few hints from Fed members as though they’d dropped a hornet’s nest in their midst. We’ve seen this so many times it’s no surprise, but it still makes us shake our heads. Remember: Initial rate hike target for this year: 4 Revised rate hike target for this year: 2 Actual rate hikes this year: 0 And what happened when the Fed did raise interest rates, ever so timidly, last December? Mainstream markets tanked in January. Precious Metals took off for what is still one of their best years in recent memory. So if I say I see the current correction as a buying opportunity, don’t dismiss it as me just being a perma-bull on precious metals. I’m not. I’ve been warning of the potential for near-term weakness for some time. I’ve been insisting that we take profits and go risk-free whenever we can … Continue reading

Doug Casey on the Self-Identified Elite

Doug Casey on the Self-Identified Elite By Justin Spittler Editor’s note: Today, we’re sharing an eye-opening essay from Casey Research founder Doug Casey that sheds light on what the disillusioned “elite” are thinking right now…and what it means for the future of America. As Doug explains, it’s more proof that we’re near “the trailing edge of the gigantic financial hurricane we entered in 2007.” [This piece was originally published in last month’s issue of The Casey Report.] By Doug Casey, founder, Casey Research Mark Twain said, “If you don’t read the papers you’re uninformed. If you do read them, you’re misinformed.” That’s why I want to draw your attention to an article called “The Isolationist Temptation,” in The Wall Street Journal on August 7, written by Richard Haass, the president of the Council on Foreign Relations. The piece wasn’t worth reading—except that it offers some real insight into what the “elite” are thinking. The CFR is one of about a dozen groups, like Bilderberg, Bohemian Grove, and Davos, where the self-identified elite gather. These groups don’t have political power, per se. But their members are members of governments, large corporations, universities, the military, and the media. They all went to the same schools, belong to the same clubs, socialize together and, most important, share the same worldview. What might that be? They believe in the State—not the market—as the best way to organize the world. Believe it or not (I still don’t…) I’ve been invited to one of these conclaves later this … Continue reading

Doug Casey on the Migrant Crisis

Doug Casey on the Migrant Crisis By Nick Giambruno Nick Giambruno: The migrant crisis is tearing Europe apart. What’s your take Doug? Doug Casey: I’m all for immigration and completely open borders to enable opportunity seekers from anyplace to move anyplace else. With two big, critically important, caveats: 1) there can be no welfare or free government services, so everyone has to pay his own way, and no freeloaders are attracted 2) all property is privately owned, to minimize the possibility of squatter camps full of beggars. In the absence of welfare benefits, immigrants are usually the best of people because you get mobile, aggressive, and opportunity-seeking people that want to leave a dead old culture for a vibrant new one. The millions of immigrants who came to the U.S. in the late 19th and early 20th centuries had zero in the way of state support. But what is going on in Europe today is entirely different. The migrants coming to Europe aren’t being attracted by opportunity in the new land so much as the welfare benefits and the soft life. For the most part they are unskilled and poorly educated. What we’re talking about here is the migration of millions of people of different language, different race, different religion, different culture, different mode of living. If you’re an alien and you’re 1 out of 10,000, or 1,000, or 100, you’re a curiosity, an interesting outsider. But an influx of millions of migrants is only going to destroy the old … Continue reading