Wed, Jun 3, 2015|Justin Brill

Investors are returning to gold...

Investors are returning to gold... Why the bear market is likely over... A new bull could be starting now... How to make a fortune in gold in 2015... Meet the world's greatest resource investors...

"Investors are returning to gold..."

According to the Wall Street Journal, investors are now turning back to gold as a "safe haven" asset for the first time in years. From the article...

After shunning the precious metal for years in favor of bonds and stocks, which often pay a steady income, investors are returning to the gold market to safeguard their wealth...

In a sign that some investors are wading back into the market, the number of net bullish bets on gold reached an 11-week high on May 19, slipping slightly the week ended May 26, according to the latest data from the U.S. Commodity Futures Trading Commission.

The Journal cited reasons that will sound familiar to longtime Digest readers...

Easy-money policies from the Federal Reserve, the European Central Bank (ECB), and other central banks around the world have all but eliminated worries of deflation. And soaring debt levels and the ongoing "currency wars" – the global race by central banks to debase paper currencies – are making folks worry about inflation again.

In addition, zero-percent (and now even negative) interest rates have made gold more attractive.

As we've mentioned before, when bonds are expensive and paying next to nothing, and you can't earn anything on your money in the bank, gold – which also yields nothing but can't be devalued by central banks – starts to look attractive.

At Stansberry Research, we view gold first and foremost as "real money" – a form of savings – and always recommend holding a portion of your wealth in physical gold. (If you're new to the reasons for owning gold, be sure to check out our short introductions in the Stansberry Research Education Center, here and here.)

But we're particularly bullish on gold today...

In addition to the fundamental reasons we mentioned above, there are signs the long bear market in gold could be over... and a new bull market could now be starting...

As you may know, gold rallied from about $250 an ounce in 2001 to $1,900 in 2011... then fell nearly 40% to around $1,200 an ounce in 2013. As we noted in the February 10 Digest, gold has been holding steady ever since.

Despite the violent moves in the currency markets over the past year – including the U.S. dollar hitting its strongest level in 12 years – gold is still holding up near $1,200 an ounce...

DailyWealth Trader editors Brian Hunt and Ben Morris explained why this is important earlier this year...

There's been a major development in the gold market. You see, gold tends to act as the "anti-dollar"... Traditionally, when the dollar declines, gold advances. When the dollar advances, gold declines...

So why is gold holding steady now?

There's a special factor supporting the gold price today. Currencies all over the world are plummeting in value... This decline in global paper currencies is so big... so severe... and so broad... it has overwhelmed the traditional tendency for gold to decline when the dollar rallies.

This has allowed gold to hold steady in the face of the dollar rally. It is holding steady when it isn't "supposed to." And when an asset refuses to fall when it's supposed to, it's a very bullish sign.

We're not alone in our bullish stance. Several of our colleagues, including Porter himself, think gold is a good buy at these levels. But True Wealth Systems editor Steve Sjuggerud has gone one step further...

Steve is predicting that a brand-new bull market in gold is starting now. He explained why in a special report for True Wealth Systems subscribers last month...

A rare signal recently flashed "buy" in the gold sector... This signal doesn't happen often. Two different signals actually need to come together for this to work. But when these signals converge, history shows that gold prices can explode higher.

A convergence between these signals has happened before every major move in the gold market over the past four decades.

Today, our systems have converged again. In short, a new gold bull market is starting right now. This is something we have to take advantage of. It could lead to massive gains in gold in 2015.

Steve explained just how powerful this buy signal can be...

The first time these numbers converged was on November 30, 1971. Gold prices soared by more than 300% in the next three years...

It happened again in the late 1970s... these two systems converged on November 30, 1976 and gold prices soared... This time gold soared by more than 500% in just a few years...

Not surprisingly, these systems converged last decade, just as gold prices entered a decade-long bull market. On September 28, 2001, these systems converged. Gold prices spent the next 10 years moving higher... And eventually soared more than 500% before peaking in 2011...

Simply buying gold today could be a fantastic trade. But as Steve explained in Monday's DailyWealth, he thinks investors can do much better...

In July 2005, I recommended three small gold stocks in my high-priced, speculative newsletter back then called Sjuggerud Confidential. (That letter was a predecessor to True Wealth Systems... without the systems.)

At the time, gold-exploration companies were dirt-cheap and completely ignored. Nobody wanted anything to do with them.

My top recommendation went on to return a 995% gain. That's the largest gain of any recommendation in the history of my publisher, Stansberry Research...

But Steve thinks the opportunity in gold stocks today is even better...

Gold-exploration companies have been decimated over the past four years. They're down [more than 80%] since April 2011. Take a look...

After a crash like that, gold explorers are cheaper today than they were in 2005 (based on how much gold you control when you buy a share of their stock). And they're more hated than I can ever remember. Nobody wants anything to do with them.

And Steve says the "big picture" for gold stocks is just as bullish...

This next chart is a ratio of a gold-stock index to the price of gold. Today, you can see that this ratio is right at its all-time lows...

The only time this ratio got this low in the past was in late 2000 – and gold stocks soared by 300% in two years after that.

Right now, we have one of the best opportunities in history to buy gold stocks.

Steve says all gold stocks could perform well over the next few years. But he expects the biggest the gains will come from following the "blueprint" he laid out in 2005.

This was the same strategy responsible for his record-breaking 995% gain. You'll find that at the bottom of every Digest in the Stansberry Research Hall of Fame. If you're interested in learning more about Steve's gold stock strategy, click here.

One last note to end today's Digest...

As regular readers know, some of the biggest, safest gains in the market can come from buying beaten-down, hated assets when nobody else wants to.

Today, that's not just gold... but the entire commodities sector...

Despite recent rises in the prices of copper, silver, and crude oil, all three commodities are still in the red over the last 12 months.

The point of maximum pessimism often marks a bottom in cyclical markets like commodities. And while we aren't in the business of trying to pick bottoms, we know many investors have lost all interest in the resource sector today.

In short, we believe this year could be one of the best times ever to invest in precious metals and resources... That's why we're co-hosting the Sprott/Stansberry Natural Resource Symposium in Vancouver this summer.

The symposium will feature the world's foremost experts on gold and natural resources, including top CEOs, hedge-fund managers, mining and exploration experts, and other executives from some of the highest-quality resource firms in the world. You'll also hear from our own Porter Stansberry, Sprott U.S. Holdings Chairman Rick Rule, Casey Research founder Doug Casey, billionaire resource investor Eric Sprott, and many more.

We hope you'll join us. Click here for the details.

New 52-week highs (as of 6/2/15): Prestige Brands Holdings (PBH).

Many of you wrote in praising Porter for his discussion of insurance firm Markel. If you haven't read it yet, be sure to check it out here. Porter will answer some of your questions in the Friday Digest. In the meantime, send your e-mails to feedback@stansberryresearch.com.

"Brand new subscriber. It's fantastic that you take the time to educate your clients instead of just throwing info at them – asking them to invest in something without knowing WHY they should invest in it." – Paid-up subscriber Ray H.

"Thank you so much, Porter, for the outstanding lesson on Markel's valuation. My own judging on Markel did show sort of a mixed outcome and now it's clear why. I have read previous lessons from you on company valuation but always missed a piece. This time, I believe, the penny has finally dropped." – Paid-up subscriber Ulrich W.

"I missed the original challenge post but so enjoyed reading about it. Please, please, please create some tool so that your members can take this value Challenge more often! Please offer us the option to force ourselves to put this into practice." – Paid-up subscriber Sam

"Keep up the short exercises. It's nice to see if one has learned or not learned." – Paid-up subscriber Robert M.

Regards,

Justin Brill
Baltimore, Maryland
June 3, 2015