Get Ready Now for the Next Gold Rush

Gold's spring is here... Why the next bull run is just getting started... Prepare now for the next gold rush... The legendary John Doody explains it all... Get a free report and hear all the details tomorrow...

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Back in January, we said gold's 'winter' was over – really...

I (Corey McLaughlin) added the "really" back then because for about two years, gold bulls had been waiting for the price to break out higher and higher...

Isn't gold supposed to be a "chaos hedge"? Haven't we seen enough chaos already? Isn't gold supposed to be an "inflation hedge"? Haven't we seen enough inflation already?

I think part of the frustration has been about expectations... because if you look at gold's price action, it has been doing just fine, thank you very much.

Gold spiked to more than $2,000 per ounce in the months after the onset of the COVID-19 pandemic... and it spiked again to that level when Russia invaded Ukraine in early 2022.

Even after the price pulled back during the year when "everything was down" because of a relatively stronger dollar and higher interest rates, gold stayed even. Gold's price was only $10 lower at the end of 2022 than it was at the start.

Since gold's lows in September, October, and November, its price is up 20% – 20%! – and has recently traded near new all-time highs again.

So, there has been some volatility in gold... but all in all, it has been doing its job in a well-diversified portfolio, rising or holding its value when it seems everything else is losing value. Winter is indeed over. Spring is here.

Now, our legendary Gold Stock Analyst editor John Doody – the smartest guy I know in the gold space – is saying gold may be set to do even better the rest of this year. According to John...

Gold's next long, lucrative bull run is just getting started...

John says 2023 is looking like a "perfect storm" for higher gold prices, which could spark one of the biggest gold bull markets ever... and I don't say that lightly.

For those who might not know, John is one of the most well-connected minds in the gold-mining industry. His research is read by gold-mining executives and more than 40 professional money managers at hedge funds, mutual funds, private asset managers, and brokers all around the world.

The renowned Jim Grant, publisher of Grant's Interest Rate Observer, calls John "the gold-mining authority."

He's a former economics professor who ditched that relatively low-paying job decades ago. He began writing Gold Stock Analyst in 1994. Back then, he printed and stapled the issues with help from a few local kids in Nantucket looking to make some money.

Since then, gold's price is up more than 400%, and readers of John's work have been treated to years of bigger gains in individual gold stocks, which provide a leveraged return to the price of gold. John has also moved on to a comfortable life in Florida.

The gold system John built has delivered a cumulative audited gain of 706% since 2001 – absolutely crushing the returns of gold itself, the returns of major gold funds, and more than doubling the U.S. benchmark S&P 500...

Importantly, John and analyst Garrett Goggin don't just give Gold Stock Analyst subscribers the names of stocks to buy. They provide amazing in-depth analysis of the gold industry and its top businesses. They explain why you ought to own these businesses... and warn about what risks to avoid.

Here's what they're saying now...

Get ready for the next gold rush...

Even with gold pulling back by about 4% in just the past two weeks, John and Garrett believe better times are ahead for the precious metal... and for the best gold companies that can make the most of higher prices for their businesses and shareholders.

The catalyst, according to John and Garrett, will be the Federal Reserve's next potential policy moves. As we've shared lately, Fed officials are now saying they might "skip" a rate hike next month, but they're being careful not to call this a "pause."

Semantics aside, the central bank is closer to the end of this rate-hike cycle than to the start of it, and John says that's because a recession is ahead.

One indicator John is looking at is the "inverted yield curve"… and specifically, the spread between 10-year Treasurys and the current fed-funds rate. As John wrote in the most recent issue of Gold Stock Analyst...

When short-term interest rates rise higher than long-term rates, it signals that a recession is on the horizon.

Right now, the short-term fed-funds rate is 5.25%, while the long-term 10-year Treasury rate is 3.80%, a difference of negative 1.45%.

Since 1971, the yield curve has inverted seven times. Each was followed by a recession (shaded in the above chart of the period since 2000). The current deep inversion will yield the eighth recession.

How does the Fed react to a recession? It lowers interest rates.

If a more painful recession is ahead, the likely outcome is for the Fed to cut rates to stimulate the economy.

We can't tell you exactly when that will happen, but John can certainly tell you what has historically happened with gold's price after the Fed has cut interest rates over the past two decades... It has skyrocketed.

Since 2000, the Fed starting rate cuts has brought on five gold bull markets, each with an average gain of more than 60% from start to finish.

Even better, John's Gold Stock Analyst Top 10 portfolio has soared an average of 309% during these multiyear periods. And as John wrote in his latest issue, "The sixth one is beginning now!"

The bank crisis and inflation are two major parts of the story...

John says many banks are "sick," with their portfolios in trouble in the higher-interest-rate environment. This is what we saw with the failures of Silicon Valley Bank and others... Any more widespread trouble could also lead the Fed to cut rates. That would raise bond prices, boost bank portfolios, and allow banks to keep lending.

Inflation coming down – but still remaining higher than many folks expected – is another variable that could help send gold's price to new highs, should the central bank start making moves to stimulate a down U.S. economy.

My colleague Dan Ferris and I recently had John and Garrett on an episode of the Stansberry Investor Hour podcast, and they made some great points...

We spoke about today's "fake money" world, the value of gold in the ground, and how inflation and the value of the U.S. dollar have a lot to do with pushing the price of a scarce, desired asset like gold higher and higher over hundreds of years.

It was a refreshing conversation to have... real value about real things.

The debt-ceiling drama dragging on could also be a tailwind for chaos hedges like gold. In any case, a weaker dollar and higher inflation is a recipe for higher prices... and potentially higher returns for the top gold-related companies that John and Garrett recommend.

To learn much more...

Existing Gold Stock Analyst subscribers and Stansberry Alliance members can check out the latest issue here.

If you're not yet a subscriber and are interested in learning more about Gold Stock Analyst and where its recommendations may fit in your portfolio, now is a perfect time.

Tomorrow, at 10 a.m. Eastern time, John and Garrett are sitting down for an interview with our editor-at-large Daniela Cambone to get into much more detail about the coming gold rush. You can sign up here to watch it for free.

They're planning to talk about the right way to invest in gold... share the inner workings of the system John started three decades ago... and how high they think gold's price could go... They'll also give a few warnings about the wrong way to invest in gold and why doing so could lead to a retirement disaster.

Just for signing up to watch the interview, John and Garrett are offering access to a free special report, "Why 2023 is a Perfect Storm for Gold." All you have to do is register to watch the interview before it goes live tomorrow morning.

So sign up here right now to get the free report and catch the entire story from John and Garrett. Whether you're new to gold or already a seasoned gold investor... I think you'll find the information enlightening.

New 52-week highs (as of 5/23/23): Broadcom (AVGO) and Vericel (VCEL).

In today's mailbag, we reply to a criticism about part of yesterday's Digest... Do you have a comment, a question, praise, rage, or a bone to pick? As always, send your notes to feedback@stansberryresearch.com.

"[In yesterday's Digest, you wrote:] 'Notably, Americans are racking up record credit-card debt...

"'Data from the Federal Reserve Bank of New York published recently showed that U.S. credit-card holders now owe $986 billion in debt. That's nearly $60 billion higher than the record set in the fourth quarter of 2019...'

"OMG! Credit card debit is up 6% since 2019?

"Hardly evidence that the economy is doomed, as has been cited many times recently.

"(I would expect a sky-is-falling angle from CNN or Fox – as click-bait or serving a political agenda – but would also expect Stansberry to offer a more pragmatic analysis.)" – Paid-up subscriber D.M.

Corey McLaughlin comment: I appreciate the sentiments – and use of "OMG!" in making a point – but please allow me to clarify a few things...

We weren't suggesting that record credit-card debt numbers are reason alone to say the "economy is doomed," although that might still be the case... thanks to credit-card debt and myriad other reasons put together – like, most notably, "fiat currency." In fact, we said...

This might sound like bad news for the economy, and it's not great for industries that may rely on discretionary spending to make profits. But for the right business, the trend toward more expensive money can be bullish.

More credit-card debt can be a positive for consumer-staples businesses because people are still spending on "needs" sold by those companies, even if it's with "cash" they don't have. As we wrote...

It's a large reason why businesses like Walmart (WMT), which we wrote about last week, can be "recession proof." They sell the things that people buy no matter what's going on in the economy...

With that said, here's the nonpolitical falling-sky part of the story, which is also worth noting...

Credit-card interest rates are the highest they've been since at least 1994, when the Federal Reserve started tracking data. Inflation is still high. I'm inclined to think higher balances and a higher debt load combined with higher prices for millions of everyday Americans will compound and lead to delinquent loans and other consequences for the economy... especially if unemployment ticks up from record lows.

So I'd argue that noting the 6% increase in credit-card debt from 2019 is less significant than thinking about what's ahead... and to prepare for an economy where Americans owe a much higher cumulative debt over the next year or so as interest payments pile up and wage increases likely don't keep up with the compounding costs of money...

When the credit-card debt owed goes north of $1 trillion (a shiny, even number made for mainstream headlines), perhaps starting this quarter, you'll start to hear more about it... which might have its own set of consequences on the markets.

All the best,

Corey McLaughlin
Baltimore, Maryland
May 24, 2023