Why You Should Own Gold Stocks Now... and the Smart Way to Do It
Listen to the 'Voice of Gold'... Gold to $3,000... The reason gold stocks soar after a crisis... Why you should own gold stocks now – and the smart way to do it... Don't trust Google... Join the insiders and pros today...
If you don't listen to the 'Voice of Gold,' that's your mistake...
Let me (Corey McLaughlin) set the scene...
It was a warm, sunny day in early March at Stansberry Research's annual Spring Editors' Conference in Florida – about a week before the widespread coronavirus quarantines began...
Inside a fairly large conference room, legendary gold investor and analyst John Doody and his business partner Garrett Goggin had just wrapped up a 45-minute presentation about why everyone should own gold...
And they'd just blown my mind with their evidence (gold has outperformed the S&P 500 Index over the past 50 years)... their track record of success in picking gold stocks (923% cumulative gains from 2001 to 2019)... and their conviction in their beliefs. As we wrote that day in the March 3 Digest, John said...
People ask me, "John, is all your money still in gold?" I say, yes. Why change? It's a hated asset. But it works.
During a break in our meetings, I spent some time talking with John, whom I like to call the "Voice of Gold" – given his gravitas and five decades of experience on the subject. He's one of those guys who's easy to believe because he's really not selling you anything that's not true.
So there we were, little old me the scribbler and the great gold investor, standing on an outdoor patio, overlooking a pool and a manmade lake... with a beautiful golf course at Streamsong Resort in the distance.
"Great presentation," I said, as if John needed to know. He'd done this a few times before.
"Thank you, thank you," he said. "It's the truth, but a lot of people don't like to hear the truth."
We beg to differ...
Earlier today, John dropped more truth about gold – and made a bold prediction...
John and his right-hand man of 10 years, Garrett, joined Stansberry Research Publisher Brett Aitken this morning for a "Gold Rally Kickoff Call" videoconference.
You can watch it for free right here...
During the call, John said he strongly believes that in the wake of the coronavirus crisis and resulting market shock, the price of gold will nearly double to $3,000 – and maybe more – in the not-too-distant future.
John laid out the many reasons why... and explained how he has seen this post-crisis gold story before... and how he has made a lot of money from staying a few chapters ahead of everyone else.
"I've seen a few of these cycles before," John explained. It goes like this...
A major crisis happens... Stocks and the value of many other assets crash... The Federal Reserve or other global central banks step in with unprecedented stimulus or stabilization measures, flooding the world with dollars, yen, or euros in the process.
Just today, for instance, in the latest news about global economic bailouts, the Bank of Japan said it will buy as many bonds as it needs to keep its economy afloat.
In these times, gold goes through an initial "confusion stage" with the broader market – which is what we saw last month, when it sold off along with almost everything else. But ultimately, the market responds appropriately.
Because suddenly, it takes more dollars, yen, or euros to buy the same amount of gold (or silver) that existed before, either above or below ground.
In the years following a crisis, the prices of gold and high-quality gold stocks soar...
It happened after the U.S. went off the gold standard in 1971... It happened again from 2001 to 2004 after the dot-com bubble burst... And it happened yet again after the financial crisis, when the Fed used bazookas that don't even compare to the trillion-dollar ones they've used this time around...
John put it this way in an e-mail to our editors a few weeks ago...
If gold's gain in 2008-2011 repeats, then gold will soar 123%, which will put it at $3,423/oz!
And he has reasons to believe it will. This type of incredible price behavior even happened after the severe acute respiratory syndrome ("SARS") pandemic in 2002 and 2003.
On today's call, John spoke about his more than 50 years tracking gold and gold stocks – first as a ("broke," as he says) economics professor at Boston University... and now as a world-renowned independent analyst who lives in a 10,000-square-foot waterfront home in Florida because of the money he made investing in gold. As John said on the call...
I've lived through this before... [What the Fed's doing] is unprecedented, it's insane, but it means good things are going to come for gold. Right now, you want to own gold, plain and simple.
Even more, the conditions are present for the next great gold bull market to unfold, one unlike anything we've seen since the 1970s.
Longtime Digest readers know many of our editors consider gold a "chaos hedge" for these very reasons... and have always recommended allocating at least a portion of your overall portfolio to gold and other precious metals.
We heard from many of you amid the March panic about why gold prices were selling off with everything else. And our team of editors has addressed that point in the Digest over the past couple of months, as well as during our special "Town Hall" a few weeks ago.
Today, John and Garrett joined Brett to detail why that was the case again... making their plea with investors to get in on buying gold now before it takes off in value.
At a minimum, this is a great time to make sure you have some exposure to gold and precious metals. With that said, though, you don't want to carelessly start buying gold exchange-traded funds ("ETFs") or random gold stocks.
You see, there's a smart way to 'own' gold – and a dumb way...
And over the past few decades, John and Garrett have developed and fine-tuned a system that identifies the worthwhile plays in gold that are safe and also deliver big returns...
They're not talking about buying physical gold – which today, by the way, is sold out in many places where you would purchase actual bullion (a sign of the demand).
Instead, John and Garrett recommend a hand-picked group of high-quality gold stocks that they thoroughly vet, research, and compare with each other using a standard set of metrics.
These are companies that John and Garrett know intimately, unlike any other analysts we're aware of.
You're certainly not going to find their research in the mainstream media, which is why their recommendations are so exciting. And you're probably not going to have the time to put in the work that they do, either... even if you wanted to.
In other words, don't take John's 'gold to $3,000' prediction, head to Google, and buy the first gold stock that comes up...
As John explained during today's event with Garrett and Brett...
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.
Most gold stocks are terrible, John acknowledges, so you need to know exactly where to look. Excuse the imagery, but it's just like if you were looking for gold itself in the ground.
This sort of truth-telling is why John and Garrett's gold-stock research service is the most widely read of its kind on the planet, and is consumed by insiders and pros.
They're on a first-name basis with CEOs of the world's best gold companies and host an annual invite-only industry conference.
Now, you have the choice to be part of their circle and access all the same great information, research, legwork, and connections that they've shared with subscribers for years.
Click here to listen to John and Garrett explain in their own words exactly why you should own gold stocks today... and the simple method you can use to potentially make triple-digit gains in the sector over the next few years.
Understanding the gold market – and how best to "own" a part of it – is a critical piece of any bear market or recession-proof portfolio. It has been proven again and again.
One last thing...
Longtime readers know that last year, Stansberry Research acquired John and Garrett's Gold Stock Analyst and Silver Stock Analyst publications...
And truth be told, it kind of threw John's personal investing for a loop. He's an "eat your own cooking" kind of guy... which is another reason we trust his advice.
For all these years, he has put his own money into the stocks he recommends. But that practice doesn't fit with Stansberry's legal policies, so now John goes about buying broadly into gold instead of the stocks in his model portfolio.
I've heard him say multiple times how this bothers him. In fact, he wrote an e-mail to all the editors last month saying...
What can be more powerful and useful to subscribers than to tell them what we are doing now with our own money?
Without a doubt, John wishes he could simply buy the same stocks he's recommending to subscribers today. So, if for nothing else, make sure you hear John out and consider buying his recommendations so that his work is not done in vain.
Once again, click here to hear from the Voice of Gold himself.
New 52-week highs (as of 4/24/20): Alamos Gold (AGI), Amazon (AMZN), Digital Realty Trust (DLR), DocuSign (DOCU), Franco-Nevada (FNV), Barrick Gold (GOLD), Lonza (LZAGY), Novo Nordisk (NVO), Sprott Physical Gold Trust (PHYS), Sea Limited (SE), and Wheaton Precious Metals (WPM).
In today's mailbag, feedback on Porter's response on Friday to your e-mails about his "Big Lie" Digest. Do you have a question or comment? As usual, send them to feedback@stansberryresearch.com.
Porter, Thank you for speaking out. I wish others that had the platform you have would also have the courage you have to speak up.
"I agree with you entirely and have been saying similar things since mid-March when we were told to 'social distance' and 'stay at home.' As the wearing of 'face masks in public' and 'don't leave your home except for necessities' orders were given I became even more alarmed. To the few people I could reach, I asked the question 'How can we so willing give up our liberties? This is the United States of America, but it is as though we have willingly put ourselves under Marshall Law.'
"My heart breaks when I look around my town at the small businesses and restaurants that are closed and may never open again.
"We need to go back to work. We need to re-open America at once. None of this 'in stages' because the damage being done to our economy only gets worse day by day.
"If I had a platform to speak from I would echo your comments and add my own. So, please, take my humble encouragement to heart and do not stop speaking out.
Thank you for listening to me." – Paid-up subscriber Kathleen P.
"I'm an 82 y/o retired MD who practiced full time until I turned 80. I'm in total agreement with Porter!!
"The time to prepare for any and all health threats is ALL YOUR LIFE by never using tobacco in any form, eating a good diet, regular exercising, using alcohol in moderation or not at all, sleeping 7-8 hrs a night (not always possible in my profession as a surgeon, unless you're an eye man), and having a firm belief in a higher power than yourself. Of course it helps greatly to pick the right parents so that you start out with good genetic material!
"Despite doing everything right including picking the right spouse there are still significant unavoidable risks and we are all destined to meet the same end, some way too young as I had to witness all too often as a combat surgeon in Vietnam. Open up the economy before we lose the dignity of honest labor and waste innumerable citizens to despair, premature death and suicides!" – Paid-up subscriber Frank B.
"Dear Porter: I'm glad you wrote the piece on April 17. I had been thinking similar thoughts. Whenever I see a talking head on TV gas bagging about how we are in this together, I think about their six or seven figure salaries while the restaurants and bars in our town are suffering.
"My gut has always told me something does not seem right about all this panic about the virus. Thank you for clarifying. Keep up the good work." – Paid-up subscriber Miles W.
"While I don't totally disagree with Porter's argument and line of thinking, one question at this time would be: if this is really just a 'bad flu season' as he states with around 23,000+ COVID-19 deaths (compared to almost 54,000 who die from 'regular old flu'), why is our healthcare system and medical personnel so overwhelmed by this event?
"Why are we building extra space to attend to patients? I don't recall ever hearing doctors, nurses, and other healthcare professionals talking about being so overwhelmed during any 'regular old flu' of the past." – Paid-up subscriber Steven M.
"You seem to be willfully missing the point of our criticisms.
"No one is arguing your main assumptions.
"Yes, the virus is vastly more present than previously thought, but still at most maybe 20% of the population. It takes 50% to stop the spread.
"Yes, it kills mostly the old and sick, but separating the old and sick from the rest of the population is not possible.
"Yes, there is no way to stop its spread, but slowing the spread is critical in order to buy time for the health system to respond.
"Yes, it's airborne, but way less contagious airborne than through contact. The experience in the hospitals demonstrates that, so distancing and handwashing does matter.
"You state that the lockdown isn't the reason for the slowing spread. I think it is. That's a disagreement among reasonable people. The stakes are high for being wrong on either side." – Paid-up subscriber Hugh M.
"You have somewhat missed the forest thru the trees; mortality is not the issue. Lethality is. Influenza killed 25,000 people in 6 months. Covid killed 45,000 in 6 weeks. In some places that overwhelms the medical system. Our BASIC medical care thus suffers, care we all expect to be there when we need it. Your 10-20% rate of infection is a far cry from the 80-90% needed for what is called 'Herd Immunity.'
"While our individual Rights are crucial, there are too many inconsiderates or ignorants that won't wear a mask or wash hands to help protect societies weakened and vulnerable. We need each other to recover." – Paid-up subscriber Art G.
"I agree with much of what you are saying. However, washing your hands certainly does help. The virus is airborne, but it is unlikely to become directly infected from droplets in the air.
"You become infected when you touch something with viral particles on it, and then give it entry by touching your face. So, washing your hands does help – a lot." – Paid-up subscriber Steve M.
"Your Friday commentaries are more poignant than even you might recognize. Why? The 'Big Lie' is the big excuse for big-government control, not just here, but all over the world.
"Too many of our US government servants have lost track. The US and state Constitutions do NOT govern us; they govern OUR government servants. Constitutions are 'We the people's' laws to them, which THEY must obey in all laws that govern us. Otherwise, their laws aren't laws.
"Therefore, I've forwarded this and last week's Friday commentaries to several family and friends (grassroots), hoping they recognize 'the Big Lie.'
"I suggest you send both week's commentaries to all governors so they have the chance to reconsider." – Paid-up subscriber Melvin P.
All the best,
Corey McLaughlin
Baltimore, Maryland
April 27, 2020