The Next Great Gold Bull Market Is Coming

Listening to the 'Voice of Gold'... Don't go changin'... The next great gold bull market is coming... Why gold should be in your portfolio now... How to do it... John Doody explains it all...

It feels like yesterday – but it was two years ago...

I (Corey McLaughlin) stepped out of an air-conditioned conference room, into the warm central Florida air, and onto a beautiful patio overlooking a pond and world-class golf course...

And right there, enjoying the beautiful weather, was the sun-tanned man who just addressed an enormous room of Stansberry Research editors, analysts, and some of our closest associates, with a compelling investing idea...

It was the "Voice of Gold"... a former economics professor who, as he would tell you, wised up, ditched his low salary, and went into investing full time in the industry he found the most appealing for growing wealth in the long run.

He's John Doody, the legendary gold investor and analyst, whose longtime Gold Stock Analyst newsletter – respected around the world – had recently come under the Stansberry Research umbrella.

Because of that, I was fortunate to meet John at a reception a night earlier at the Streamsong Resort in Florida and soaked up his wisdom. "Don't cherry-pick," he said, talking about his gold stock recommendations. "Buy them all."

The next day, in a large conference room with a trio of giant screens behind them, John and his business partner Garrett Goggin, talked much more about gold and gold stocks for roughly 45 minutes... And they blew my mind...

They showed how gold had outperformed the benchmark S&P 500 Index over the past 50 years... and why you always want to own gold in a negative "real interest rate" environment – if you're interested in protecting and growing your wealth, that is...

And they shared their amazing track record of success at picking gold stocks (a 923% return from 2001 to 2019 – now a 1,033% gain through 2021)... and presented a compelling case for owning gold in an investment portfolio that easily passed my "sniff test."

In short, he made a compelling case for owning gold... while sharing insightful commentary on the state of the global financial system... When I walked into the refreshing warm, Florida air after his talk and saw John, my first instinct was to thank him, which I did.

John said... "It's the truth, but a lot of people don't like to hear the truth."

Since then, a lot has changed in our world...

But at least two things have not... No. 1: A lot of people still don't like to hear the truth... and No. 2: The bullish case for gold.

Today, we'll talk about the latter...

It has been two years since I first heard John make the bull argument for gold and a little less than that since we shared his call for $3,000-per-ounce gold here in the Digest, but the case for the price of gold soar soon has never been stronger... The pieces are coming together for a major run.

We have inflation numbers not seen in decades... equally large amounts of market "fear"… and major unresolved geopolitical conflicts… The pieces are coming together for a major run in gold that may be longer and stronger than many people imagine...

In a new video, John and Garrett sat down to explain precisely how... shared why now is the time you need to have gold in your investment portfolio... and, most important, how best to do it. You can watch the video or read a transcript of it here.

I suggest you do it for yourself, but here's the big point I want to make sure nobody misses... John says we could be on the verge of one of the biggest gold bull markets we've ever seen... And that's saying something – because he has seen a few.

The first was in the 1970s – the last time inflation measures were as high as they are today... That happened after President Richard Nixon essentially ended the gold standard in 1971.

With the dollar's value now free to be defined by central bankers rather than be tied to a physical ounce of gold, by early 1980, the price of the precious metal soared from its previous $35-per-ounce peg to roughly $850, a more than 2,300% increase...

Then there was the 2000s gold bull market... which occurred before, during, and after the financial crisis...

Gold's price was around $255 at the turn of the century, and a decade later, after the term "quantitative easing" entered the investing lexicon and the U.S. government printed more dollars than it ever had before – gold reached $1,895 per ounce.

That's a 640% gain...

And then there's today...

The next great gold bull market could just be beginning...

As John sees it, based on his roughly five decades of experience in the gold industry, he says we are at the start of another great gold bull market that could go down in the same chapter as the previous two.

We probably don't need to tell you why... Many trillions of dollars have been printed into existence over the last two years alone... and the Federal Reserve's balance sheet is near an all-time high of $9 trillion.

The ensuing inflation caused by colossal money printing that we've warned about is now in full force, making its way through the "real" economy... You'll hear people say it's because of the war in Ukraine, or any other number of reasons.

But it's not... According to John, who taught economics for 20 years, the reason is simple. As he says in his new presentation...

It's Economics 101: Inflation inevitably follows an increase in the money supply. And that's the real reason why we're seeing inflation today.

Here's another basic idea...

Inflation of the U.S. dollar makes the relative value of things, priced in dollars, rise... And as we've explained, this is why it can be such a great idea to seriously consider owning assets whose values are tied to tangible, in-demand goods.

Real estate is a big one. Things like timber or any number of commodities can be too. The same can be said for gold (or silver), which has been a "store of value" for thousands of years. We're seeing it again right now...

We're almost three months into 2022... Stocks are down across the board... Bonds are off too... And bitcoin, which has been called "digital gold," given its inflation-protection features and capped supply, is down as well, below its November peak.

At the same time, amid high inflation and growing geopolitical uncertainties around the world... like the possibility of World War III... the price of gold is going up, as John showed in his Masters Series essay on Saturday...

Gold traded around $1,935 today, and it is beating virtually every asset right now, up about 7% year to date...

In times of "fear," this is to be expected. It's why many of our editors consider gold a reliable "chaos hedge" and why they recommend folks always have at least a small percentage of their portfolio allocated to the precious metal.

John takes things to another level...

He doesn't simply suggest you own gold when market fear is high...

When John joined Stansberry Research in 2019, his entire personal portfolio matched the approach of his Gold Stock Analyst newsletter, meaning "all gold"...

I can't tell you if "all gold" is the right move for you, but I can say that everyone with money in the market should at least consider having an allocation of gold today. It's proven to be the ultimate inflation hedge over the years, and certainly in last several decades.

As Garrett says in the presentation with John...

Gold is doing exactly what it has always done for the past 5,000 years in a time of crisis: It's maintaining its value.

And when there's geopolitical uncertainty and rising inflation like we're seeing today – the price of gold quickly takes off.

That's what happened in the last two big gold bull markets... Plus, John and Garrett note another market indicator – that we've talked about here in recent weeks – as a sign for a higher gold price in the future...

We're talking about the 'inverted yield curve'...

As we've explained before, this is when the yield of longer-term U.S. Treasury bonds eclipses those of short-term bonds, because of growing short-term uncertainty about the market.

We're getting closer to seeing this inversion on the "10-2 curve" each day...

Today, the difference between yields on 10-year and two-year Treasurys is down to only 0.17, the lowest reading since March 9, 2020... during the freefall of the COVID-19 crash.

This behavior typically proceeds a recession, which typically coincides with a "bear market" in stocks. Turns out, an inverted yield curve also has a strong correlation with a significantly higher gold price.

Check out this chart from John and Garrett's new video...

These numbers show that on average, the price of gold has historically shot up 140% after the yield curve inverted... in less than two years.

The 1980 inversion is not included, John says, because he doesn't think there is a risk today of the Federal Reserve hiking interest rates to 20% to stop inflation – which stopped the gold bull market, too – like it did back then when the country faced runaway inflation...

That said, no matter what the Fed does this time, John believes, it's going to be great for gold. Based on the yield curve indicator alone, gold is due to double from its roughly $2,000-per-ounce price in the next year or two...

For reasons like these, John says, "Don't panic, buy gold"...

I think now is one of the best times in decades to own gold... It starts with the fear we're seeing. But you want to get in now.

Don't wait for things to get even worse. Don't wait for gold to hit $3,000... or even $2,500. Get in now. Today, if you can.

Because even when this fear subsides – and it will at some point – it could be a year from now, could be several years – but even when the fear subsides... I believe these higher gold prices will stay.

So what's the best way to 'buy gold'?...

While owning physical gold is a good start, John recommends taking another approach if you really want to take advantage of all the bullish trends to protect and grow your wealth...

He suggests gold stocks because, in short, when the price of gold goes up, the shares of the best companies in the gold industry, usually grow by even more...

From 2001 to 2006, gold shot up 177%... and gold stocks did better. From 2008 to 2011, gold rose 163%, and gold stocks did better, because of "leverage," but not the kind of leverage that puts folks in debt.

As John says...

Gold stocks have a unique feature that amplifies the return of gold. When gold is gearing up to double... gold stocks are usually ready to jump even higher.

There's a fundamental reason why gold stocks can do 10X, sometimes even 20X more than the return of gold itself. It all comes down to profit.

The thing is, though, John admits most gold stocks are terrible...

So you need to know exactly where to look. Here, we remember the sage advice John gave two years ago once again...

Mark Twain said a gold stock is a hole in the ground with a liar standing next to it. And that can be too often the case. Randomly buying a gold stock is a recipe for disaster.

As we mentioned, John's Gold Stock Analyst portfolio has returned more than 1,000% from 2001 through the end of last year. In the same span, gold's price has only gone up 560%... while the S&P 500 is up even less (443%)...

Year to date, the Gold Stock Analyst portfolio is up almost 14%, compared to gold's 7% gain and the S&P 500's roughly 7% loss... Similarly, the portfolio has historically beaten the pants off widely used gold exchange-traded funds ("ETFs") or indexes over the years.

If you are new to John's work, as you might have picked up in his pair of Masters Series essays on Saturday and Sunday, he is a legend in the gold industry... and I can tell you he's extremely well-connected.

Every year, he hosts the Gold Stock Analyst Investor Day – which he did again just last month in Florida – which attracts the biggest names in the gold industry for a few days under one roof.

John is on a first-name basis with the CEOs of the biggest companies in the industry... He makes site visits – even throughout the pandemic... and provides detailed analysis of all his recommendations each month in his newsletter.

Given the opportunity he sees in gold right now, in his new presentation, John decided to open up his "playbook"... and reveal how he goes about narrowing a universe of about 600 gold stocks to a small handful of the best, highest-upside gold stocks to target at any given time.

John reveals how he's able to eliminate roughly 90% of gold stocks from consideration almost immediately... and how he does the same for subscribers... and much more detail about why the next great gold bull market is right around the corner.

Check out this must-watch video right here. And existing Gold Stock Analyst subscribers and Stansberry Research Alliance members, you can find John's latest work in Gold Stock Analyst right here. Just remember, don't cherry-pick... Buy them all.

Why the Fed Doesn't Want You Owning Gold

E.B. Tucker, bestselling author of Why Gold, Why Now?, covers a lot of ground in his latest interview with our editor-at-large Daniela Cambone... including why the Federal Reserve doesn't want you owning gold (which is precisely why you should)...

Click here to watch this video right now. For more free video content, subscribe to our Stansberry Research YouTube channel... and don't forget to follow us on Facebook, Instagram, LinkedIn, and Twitter.

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In today's mailbag, feedback on Dan Ferris' latest Friday Digest... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.

"Dan, Thank you for making me laugh on a cold, miserable, rainy, east Alabama day. Because you write with knowledge and humor, I always look forward to your musings, and really appreciate your Extreme Value letter." – Paid-up subscriber Jay D.

"Dan, Awesome Digest! You pulled the comedy of the reality we are living to the forefront. It was great. I needed a good laugh.

"Now maybe Steve can use that data (when crazy investing turns to irrationally stupid), to plug into his computer some way to predict when sane investing and monetary system will return from the criminal base on the moon?

"It might be a predictor of market highs. Or something we can bet on with the bookies, like how many criminals are going to jail." – Paid-up subscriber Daniel A.

"Hello Dan, Great Digest. Parts of it reminded me of the 'Letters from the G.M. chairman' that Porter used to write." – Paid-up subscriber Neil S.

All the best,

Corey McLaughlin
Baltimore, Maryland
March 21, 2022