An Urgent Reminder on Gold
An urgent reminder on gold... The biggest reason to own gold and silver today... An astonishing fact about negative interest rates... The central banks won't stop...
Tonight, we begin with an urgent reminder...
By now, most Digest readers know we're incredibly bullish on gold. Several Stansberry Research analysts believe we could be in the early innings of one of the biggest gold bull markets in history. In fact, Porter believes gold could ultimately reach $10,000 an ounce before it ends.
Because Porter believes the opportunities in gold and silver are so great today, he has done something he has never done before in the 17-year history of our business...
He just put his name on a brand-new gold- and silver-focused advisory: Stansberry Gold Investor.
The response to this new service has been fantastic... We've already received hundreds of letters from readers thanking us for this work.
And the early results have been just as remarkable... The average return on Porter's original recommendations is 17% since we launched the service less than two weeks ago.
Short-term returns like these are extraordinary... But we believe a new bull market in gold and silver is just getting started. If you missed this rally, it isn't too late to join us.
But if you've been on the fence about trying our new gold service, there's something you need to know...
Your last chance to become a charter member of Stansberry Gold Investor ends tonight at midnight Eastern time. You must act now.
The fact is, some of Porter's favorite ideas are small-cap gold and silver stocks that are simply too small to recommend to large numbers of subscribers without causing huge price spikes.
Unfortunately, this means we must limit the number of subscribers we bring on board. So we'll be closing Stansberry Gold Investor to new members tonight at midnight Eastern time.
If market conditions allow, we hope to be able to accept new members in the future. But we can't guarantee it... And if we do, it will have to be at a significantly higher price than we're offering today.
If you've considered joining, we urge you to take advantage of this special charter offer. But again, you must act now... This offer will close forever at midnight Eastern time tonight.
Claim your charter membership to Stansberry Gold Investor (without having to watch a long promotional video) by clicking here.
Speaking of gold, one of the biggest reasons to own precious metals today is the spread of negative interest rate policy (or "NIRP") around the world. As Porter explained in the April 5 Digest...
The reason is easy to understand: Gold is the ultimate hedge against the loss of purchasing power in paper currencies. If governments can't offer a real rate of return for holding their bonds, then investors aren't being protected against inflation. And as a result, they flee to gold.
In other words, as our colleague Steve Sjuggerud likes to say, "When both gold and paper pay you zero-percent interest, you should prefer gold over paper." And according to the latest data, a mind-blowing amount of the world's paper is already paying zero percent or less.
In its recent market update, the World Gold Council reported that an incredible $8.7 trillion worth of government bonds currently have negative interest rates today – approximately one out of every four outstanding bonds.
But even that figure doesn't tell the whole story. When you account for inflation, that number increases to $15 trillion worth of government bonds.
This means more than half of the world's outstanding government bonds offer negative real interest rates today. Is it any wonder gold and silver have been soaring?
In the meantime, there's no sign the trend toward more easing and lower interest rates is slowing down...
Sweden's central bank – known as the Riksbank – has already slashed short-term rates to -0.05%, among the most negative in the world. This morning, it unexpectedly announced it was increasing the size of its already-large quantitative easing ("QE") program.
The bank said it would buy an additional 45 billion kronor ($5.6 billion) in assets this year, representing an increase of 20% from its previous QE plan. It also said it was "highly prepared" to increase it again and push rates further into negative territory if necessary.
The European Central Bank ("ECB") also met this morning...
While it made no changes to rates or its QE program today, ECB President Mario Draghi also said the bank would not hesitate to use "all instruments available" in the future.
When asked if that included pushing negative rates even lower, Draghi said yes. He also noted that the ECB's experience with negative rates has been "broadly positive" so far (though we suspect some of Europe's biggest banks might disagree).
Draghi did admit there is a likely a limit to how much further negative rates could be slashed. But of course, he declined to say what that limit might be.
The Bank of Japan ("BOJ") is scheduled to meet next Thursday. As we mentioned last week, despite the country's aggressive easing programs and negative rates, its currency (the yen) has been soaring against the U.S. dollar. But don't expect the BOJ to simply give up...
Like Draghi, BOJ Governor Haruhiko Kuroda has long promised to do "whatever it takes" to increase inflation. Some analysts believe he could be planning another big move next week – such as massively increasing the bank's QE program, or slashing rates even further into negative territory.
Of course, we can't say what he'll do... or how markets will react in the short term. As we've explained, even the central banks don't know.
But the long-term trend is clear: These policies are incredibly bullish for gold. As they continue – and become more extreme – more and more folks will flee paper currencies into the safety of gold.
Make sure you're there first.
New 52-week highs (as of 4/20/16): Aflac (AFL), Ciner Resources (CINR), Johnson & Johnson (JNJ), Nuveen Municipal Value Fund (NUV), Prestige Brands Holdings (PBH), and Pretium Resources (PVG).
Several subscribers share their thoughts on our new Stansberry Gold Investor service. As always, send your comments and questions to feedback@stansberryresearch.com.
"You are absolutely right, I bought a large stake of GDX in December and quite frankly it's been a fantastic investment. I'm up over 60%, and staying with it." – Paid-up subscriber John F.
"I am a charter member [of Stansberry Gold Investor] and could not be more happy. I invested $30,000, which is 8% of my stock portfolio, and have seen your picks grow 15% in the few weeks since my investment. I feel that you have given me the hedge against stock market losses as well as the potential of making a killing if and when the monetary system collapses. Thank you." – Paid-up subscriber Dave S.
"Hi Porter (and team), That was a great synopsis of gold in the mailbag section of the [April 18] Digest. I'm gonna send that nice succinct writeup to some friends who ask 'why gold,' and inherently see gold as an investment rather than as money, or money insurance... I enjoy you and your team's analysis, and your thoughts are definitely helping me prepare for the upcoming wealth transfer. Thanks." – Paid-up subscriber Wayne
"Mr. Stansberry is a great source for what is going on... I have been watching and studying mining since 1996, even back in 1975-80. Porter is right, it will be a big move for silver and gold investments. Thanks." – Paid-up subscriber Bob M.
"I'm in my late 30's and after years of watching my retirement accounts meander along unimpressively in mutual funds, I decided to take control and invest myself. I read Stansberry Investment Advisory for about a year before I worked up the courage to get a Flex membership and open an online brokerage account. It's been a little over two months, and so far, so good. I'm fully aware that I am incredibly fortunate that I happened to get into the game right as this latest upturn in the market took off.
"However, I've kept track of my old mutual funds, which were considered aggressive, and my returns have more than doubled theirs. I've also tracked my parents more conservative, actively managed accounts, and my returns are even higher yet. I want to say thank you because about 95% of my positions have been direct recommendations from the various newsletters in my Flex account. I'm not getting too far ahead of myself and am remaining very cautious, but the 'learning' I'm receiving has been invaluable..." – Paid-up subscriber Chris S.
Regards,
Justin Brill
Baltimore, Maryland
April 21, 2016
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