It's finally time to buy gold... Three of our analysts agree... Why gold is competitive with cash today... Steve believes 200% gains are likely...
If you didn't read last Friday's Digest, I'd urge you to do so. We shared one of the most controversial recommendations Porter and his team have ever made... They call it "the most hated stock in America."
While most analysts are bearish on this company, Porter's team thinks the stock could be worth triple its current price based simply on the value of its assets. And while everyone else thinks this company is failing, we believe it's selectively liquidating and spinning off assets to create huge value for shareholders.
It's a great story with world-class analysis. You can read it right here.
Also, if you look at the new highs from last Friday and today, you'll see that safety is "sexy" right now...
Municipal bonds and Treasurys both hit new highs. So did blue-chip companies Hershey (chocolate), Constellation Brands and Anheuser-Busch InBev (booze), and Altria (cigarettes). People will always want safe income, candy, alcohol, and cigarettes.
Another safe-haven asset that has been left for dead in recent years is about to soar: gold.
One more Stansberry Research analyst just turned bullish on the precious metal...
In the January 12 Digest, we explained why Stansberry Resource Report editor Matt Badiali is now bullish on junior mining stocks. He wrote...
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Longtime readers know when junior miners rally, they soar... making investors five or 10 times their money.
Then, in the January 15 Digest, we shared Stansberry Short Report editor Jeff Clark's research explaining gold's technical strength...
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When several of our analysts are making the same call, you should pay attention.
In the latest issue of True Wealth, Steve Sjuggerud proclaimed, "It's finally time to buy gold stocks."
Again, Steve looks for assets that have three characteristics: They're cheap, hated, and in an uptrend.
With the U.S. dollar hitting record highs, people have been poking fun at gold bugs. Lots of gold stocks are trading for absurdly low valuations compared with the price of gold. (While gold stocks are down 63% from their 2011 peak, gold itself is down just 37% over the same period.) So they're definitely cheap and hated.
And Steve says gold stocks have bottomed and begun an uptrend. In short, it's time to back up the truck.
In the latest issue of True Wealth, Steve outlined the reasons you should buy gold today...
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One reason Steve is bullish on gold is because the dollar is so popular right now. Bullish sentiment toward the dollar is at an all-time high. And speculators have more bullish bets on the dollar than ever.
Everyone is buying dollars. The move has been parabolic...
And after the Swiss National Bank (SNB) shocked the market by unpegging its currency from the euro, we may have seen the last group of buyers rushing into the safety of "King Dollar." After such a parabolic move in an asset, there's usually a correction.
But what happens when investors pull money out of the dollar? Where will that money go? It's not going into the euro... The SNB signaled its loss of faith in the euro with its surprise move. Switzerland is betting on further weakness.
And in a speech to business owners today, French President Francoise Hollande echoed the SNB's sentiment. The Wall Street Journal reported...
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Money isn't moving into the Japanese yen, either. Interest rates are at record lows around the world... You're earning zero interest in German government bonds. And you're actually paying to hold Swiss bonds.
When interest rates are at zero, gold becomes highly competitive with money in the bank. As Steve explained...
Governments can print more money, but they can't print more gold. So when you're given the choice between earning zero percent over the next five years in government-printed paper dollars, or earning zero-percent interest in a hard asset (like gold) that can't be printed, which one makes more sense for you to hold?
Steve's "investment script" since the Federal Reserve began quantitative easing has been dead on.
He called the "Bernanke Asset Bubble" when former Fed Chairman Ben Bernanke starting printing money... Steve correctly predicted asset prices would soar across the board.
He urged his True Wealth subscribers to buy a house (before real estate prices soared). And he recommended shares of Blackstone Group, the private-equity firm that is now the nation's largest owner of single-family homes... True Wealth subscribers are up 172% on the recommendation in just more than two years.
Steve's subscribers are also sitting on big gains in health care stocks (388%), Berkshire Hathaway (153%), and technology stocks (132%), to name a few.
He believes gold is the newest addition to the script. And he has recommended a fund that holds 25 of the world's best gold-mining companies. The fund follows a certain set of criteria when selecting its holdings.
The last time gold rallied – from late 2008 until the end of 2010 – the index this fund tracks soared 242%. Steve thinks we could see 200%-plus gains this time around, too.
You can access Steve's latest issue with a subscription to True Wealth. Considering the quality of Steve's research (and how profitable his recommendations have been), we believe True Wealth is one of the best investment-research bargains in the world... You can purchase a one-year subscription for only $39. Plus, you have the next four months to review Steve's research to decide if it's right for you. If not, we're offering a 100% money-back guarantee. Click here to sign up.
One last note... We're bringing you the annual Report Card this week, but we're doing something we've never done before...
Longtime readers know that Porter personally annually reviews every service we publish. He shares his thoughts on their performance, then assigns each publication a letter grade.
It's one thing we do to make sure we're as transparent as possible with you... We want you to know exactly where each of our services stands. And if we're underperforming, we want you to know.
We don't know of any other publishing companies that produce this type of extensive annual review.
And for the first time ever, Porter is going to present the annual Report Card live. It's taking place Thursday at 2 p.m. Eastern time.
If you'd like to sign up for our VIP reminder service to make sure you don't miss this presentation, you can do so for free right here.
New 52-week highs (as of 1/16/15): Brookfield Property Partners (BPY), Anheuser-Busch InBev ( Lots of you wrote in with your thoughts on electric carmaker Tesla and responding to paid-up subscriber Tom Parker's argument that Porter isn't considering all of the facts. Let us know what's on your mind at feedback@stansberryresearch.com.
"I'm with Porter on this one, and I DO have a degree in Electrical Engineering. I think we all know that the really big problem is the batteries. Gasoline has a high specific energy per unit volume (and thus weight); batteries do not. Research is ongoing, but it has been ongoing since the days of Nicola Tesla himself. There are still no really big breakthroughs on the horizon.
"Environmentally conscious? Unfortunately, the Greenies have a habit of not looking at the entire lifecycle of any product, only the part that they are directly involved with. So the real question is what is the environmental cost of producing, and eventually disposing, of all those batteries. If standard auto batteries are considered "hazardous household waste", what would millions of Tesla batteries, batteries that are a known fire hazard, sitting in junkyards be?
Finally, Porter is absolutely right that if I've got a spare $100,000 to blow on a toy to impress the Greenies, I'd rather stick with my cheap sub-compact and do something else for my family." – Paid-up subscriber Edward S.
"Were I to invest in Tesla today, there is no doubt about it. I would be SHORT. About 8 or 9 months ago, I shorted Tesla. I lost a bundle. I was ahead of my time. I forget Porter's advice, "don't short a company simply because it is obscenely overvalued." Or words to that effect." – Paid-up subscriber Sy Richards
"I would short Tesla's stock for the foreseeable future because the car is a glitzy, over-priced toy driven mostly by people wanting to flaunt their wealth. How can Tom Parker pretend that Tesla drivers are "environmentally conscious consumers" when they completely ignore how electricity used to recharge Tesla's batteries is generating primarily by burning coal, not by the sun or the wind?" – Paid-up subscriber Bob Maxwell
"Dear Tom, I believe as you do that electric cars will be the norm in our 21st century transportation system, but only after it makes economic sense. After the recent drop in oil, those economics just got pushed even further out. Things get really depressing for the economics of Tesla if you consider the vast reserves of clean burning natural gas that can easily be used in existing combustion engines with little retrofitting.
"I recommend that you do some research into the true cradle-to-grave economic impacts of electric vehicles. Current combustion engines are extremely clean burning and efficient and are mandated for decades into the future to become even more so. There is also a very efficient recycling stream where old cars are almost completely reused to make new ones. The various rare earth elements found in electric cars require tremendous amounts of energy to mine, smelt and refine. The environmental impact of the huge mines is not insignificant with massive dozers, dump trucks and heavy equipment that belch huge amounts of carbon into the atmosphere at 2 mpg.
"My bet is that, for the reasons above and others, electric cars will not become mainstream until a new highly efficient and environmentally friendly battery is developed, say, one made of graphene, for which patterns already exist. The $5 billion lithium battery plant that Elon is building seems even shakier than his car investment. Full disclosure, I have never owned any car company stock due to the horrible business they are in, but if I did, Tesla would be in a dead last tie with GM. I truly wish you and anyone else invested in Tesla the best of luck. Unfortunately, I think you will need a lot of it to do well in Tesla." – Paid-up subscriber John P.
Regards,
Sean Goldsmith
January 19, 2015
