The Most Important Number in the Market Today

Just two days away... Have you reserved your spot?... Bill Gross: The most important number in the market today... Great news for Stansberry Research Resource Report subscribers... Big news for gold investors... 'We finally have what we're looking for'... Sjug says 'buy'...

We're just two days away from the biggest event in Stansberry Research history...

As you've likely seen by now, we're hosting a free, live event this Thursday to share all the details on our new Stansberry Portfolio Solutions product.

And if you're one of the countless folks we've heard from who hasn't been able to "put it all together" – if you've failed to achieve your investment goals year after year, despite your best intentions – you absolutely can't afford to miss it.

For the first time ever, Stansberry Portfolio Solutions will make following our research completely foolproof for virtually any investor. And you can learn all about it this Thursday, January 12 at 8 p.m. Eastern.

We're expecting a huge turnout. Click here to reserve your spot now.

Bond investors only need to watch one number in 2017...

So says "Bond King" Bill Gross, the former head of bond giant PIMCO, now with Janus Capital Group.

According to Gross, that number is the yield on the benchmark 10-year U.S. Treasury note.

In his latest monthly investment outlook, Gross notes that gauging where interest rates are heading may be more challenging than ever.

Here in the U.S., the Federal Reserve has begun to "tighten" monetary policy... Yet other major central banks continue to "stoke the fire" with quantitative easing and negative interest rates.

According to Gross, when the fundamentals are confusing, technical analysis or "chart reading" can be useful. And to Gross, it shows the three-decade bull market in bonds is in critical condition. From his letter...

It's obvious to most observers that 10-year yields have been moving downward since their secular peak in the early 1980s, and at a rather linear rate. 30 basis point declines on average for the past 30 years have lowered the 10-year from 10% in 1987 to the current 2.40%.

As you can see in the chart below, Gross notes the 30-year downtrend in rates has been contained by a downward channel...

If rates break out above the top of this channel – which sits just 20 basis points above today's yield – Gross believes it will signify the end of the long bull market...

This super strong, frequently tested downward trend line is at risk of being broken. 2.55% to 2.60% is the current "top" of this trend line, and over the past few weeks it has held and reversed lower by 15 basis points or so.

BUT... And this is my only forecast for the 10-year in 2017. If 2.60% is broken on the upside – if yields move higher than 2.60% – a secular bear bond market has begun. Watch the 2.6% level.

Stansberry Research Resource Report editor Matt Badiali has done it again...

Regular Digest readers may recall two different Stansberry Research Resource Report recommendations were bought out by larger mining firms last year.

In April, copper producer Nevsun Resources (NSU) agreed to buy small developer Reservoir Minerals. Matt's subscribers eventually closed the position for a 106% gain.

In July, gold-mining giant Goldcorp (GG) closed its deal to buy junior miner Kaminak Gold... handing subscribers a 245% gain in just 10 months.

Yesterday, it happened again...

On Monday, Goldcorp announced it is buying about 9.5 million shares of gold junior – and Stansberry Research Resource Report holding – Auryn Resources (AUG.TO). It will own 12.5% of the company after the deal.

Goldcorp is paying an average of C$3.67 per share... more than a 20% premium to Matt's maximum buy-up-to price. But many of Matt's subscribers are likely showing even bigger gains...

During the most recent gold-stock pullback, Auryn closed as low as C$2.19 on November 25. Those who entered or added to their positions at these prices are up as much as 67%.

Matt explained more about the deal in a special portfolio review for Stansberry Research Resource Report subscribers yesterday after market close. From that update...

Auryn just announced that gold major Goldcorp (GG) plans to buy 12.5% of its shares. This deal also increases the likelihood that Goldcorp could buy some more or all of Auryn in the future.

We like that possibility... we recently closed portfolio holding Kaminak Gold for a 245% gain when Goldcorp closed the deal to buy it in July 2016.

In today's press release, Auryn said the money raised from the recent financing will fund all of its 2017 exploration expenditures. This is important – this year Auryn is undertaking one of the largest exploration programs of a company its size...

In 2017, Auryn plans to drill a total of 55,000 meters (more than 180,000 feet). It will do most of the drilling (25,000 meters) at its flagship Committee Bay gold project in the Nunavut province of Canada (north of Manitoba). It will drill 15,000 meters at its Homestake Ridge project in northwestern British Columbia, and another 15,000 at three of its projects in southern Peru.

The exploration is aggressive, but that's Auryn management's style. It has already founded and monetized two junior mining companies. It sold one of those – Cayden Resources – for C$205 million in 2014. Auryn merged the other – Keegan Resources – into the West African gold producer now known as Asanko Gold (AKG).

Hold shares of Auryn at this price. You can buy shares up to C$3.

So... how has Matt already managed to find three of the top junior gold acquisitions since the new bull market began last year? He attributes most of his success to one factor in particular. As he explained in a private e-mail this morning...

One of the most important aspects of finding great companies is "know who." It's the million-dollar Rolodex. I've been in this sector for over a decade now, so I've met most of the players. And Auryn's Executive Chairman Ivan Bebek and President and CEO Shawn Wallace are high up on my list of people to know. They're experienced company builders who have created and sold two successful companies...

Bebek founded African development company Keegan Resources in 2005, which became Asanko Gold in 2013, reflecting the region in Ghana where it operates. Asanko just started producing last year... and is ramping up production to 400,000 ounces of gold per year.

This shows just how good Bebek and his team are... Remember, we just came through a severe bear market where many projects died. Yet Asanko not only survived, it advanced its project to production. That's a huge success.

This same team also founded junior developer Cayden Resources in 2010. Cayden sold its non-core land holdings to Goldcorp in 2013 for nearly C$16 million... and was then bought by Agnico Eagle Mines for C$205 million in 2014. We could see that type of quick outcome with Auryn, too.

These guys are the next generation of fantastic value creators in mining. We don't see many. People like Ross Beaty (of Pan American Silver, among many), Bob Quartermain (of Pretium), and Lukas Lundin (of Lundin Mining, among many).

Those three are older now. Bebek and Wallace are decades younger. They are among the new group of names to watch... like Eira Thomas (formerly of Kaminak), Morgan Poliquin (of Almaden Minerals), and Miles Thompson (of Lara Exploration). These are names that should get your attention and your investment dollars. They won't always make you money, but your odds are much better backing them rather than 99% of the "storytellers" in Vancouver.

Speaking of gold, we have big news from our colleague Steve Sjuggerud...

Regular readers know Steve originally turned super-bullish on precious metals early last year – like several other Stansberry Research editors – when gold stocks were as hated as they had ever been.

But he then turned cautious on the sector last summer. He noted sentiment had flipped from super-bearish to super-bullish, and he told his True Wealth subscribers to sell half their position in gold stocks to lock in a 95% gain.

Of course, we know now Steve's call was nearly perfect... Precious metals topped just weeks later, and moved lower for the rest of the year.

Since then, folks have been asking Steve if it's time to get back in.

Today, for the first time in months, we're happy to report his answer is "yes." As Steve explained in today's edition of our free DailyWealth e-letter, this summer's super-bullish sentiment has finally flipped back to bearish...

When people asked me to tell them when to get back in, I said I was waiting for investors to give up on gold. But darn it, gold investors were stubborn... It took them many months to give up.

Meanwhile, Steve says gold also appears to be starting a new move higher...

If you've been a DailyWealth reader for a while, you know what I look for... I want gold to be HATED and in the start of an UPTREND... My friends, here at the beginning of 2017, we finally have what we're looking for... Gold is no longer as loved as it was... AND we have the start of an uptrend.

If you've been waiting since this summer for my "permission" to buy gold... you did the right thing. Gold went nowhere but down for months. However, things have changed in 2017... So my opinion has to change...

If you were waiting for my permission, now you have it!

New 52-week highs (as of 1/9/17): Apple (AAPL), Auryn Resources (AUG.TO), and PureFunds ISE Mobile Payments Fund (IPAY).

In today's mailbag, more praise for the latest from bestselling satirist and Digest contributor P.J. O'Rourke... a timely question from a new Stansberry Alliance member... and more subscribers tell us how they fared in 2016. Send your notes to feedback@stansberryresearch.com.

"PJ's recent articles about regulation and economics are so spot on – he has made me sit up and take serious notice." – Paid-up subscriber Dale S.

"Being a new Alliance Member, I feel like I would be better suited to invest with your timely recommendations from your publications. I have been investing since 1986 and have not done as well as I would have liked. However, with all the information given, from all of your publications, how does one truly decide which publication and recommendations they should follow? All of your publications have great reviews and reasons for investing in the current recommendation, but I can't invest in all of them. I know you can't give any financial advice personally, but how does one really start to choose and decide which publication to follow? Thank you in advance for any comments." – Paid-up Stansberry Alliance member Joe G.

Brill comment: Joe, you're not alone... For years, we've received countless questions (and complaints) just like yours. Unfortunately, we simply didn't have a great solution... Until now.

As we mentioned earlier, we're launching Stansberry Portfolio Solutions to make following our advice absolutely foolproof... This service will provide completely built-out portfolios, using our best research, that any investor can follow. Again, we're hosting a free, live event this Thursday evening, January 12 at 8 p.m. Eastern time to explain it all. Click here to reserve your spot now.

"Porter, I'm an 'all in' believer of you and your products. Why? Because they work! I became a lifetime Alliance member in September 2015, and then a lifetime TradeStops subscriber in January 2016. The 2016 total return on investments I've made based on your and other Stansberry analysts' recommendations was 18.4%.

"I have infinitely more actionable knowledge than when I began and feel secure that I am uniquely positioned to take advantage of whatever investment situations might present themselves in 2017 and beyond. I can't speak for others, but becoming a lifetime Alliance member is the BEST investment I've ever made... " – Paid-up Stansberry Alliance member Ed Brink

"Looking forward to Thursday. As an Alliance member I am thankful for your research. This new Solutions approach is something I was hoping you would offer one day. Looks like that day has come." – Paid-up Stansberry Alliance member Gary Finch

"Sounds like [Stansberry Portfolio Solutions] will be the kind of service I really need. I've been a member for years but still having problems with incorporating all the ideas into a portfolio that makes sense or performs well for me. I seem to pick out the less stellar investments and leave others on the table that do really well. Cannot buy everything. However, I have not lost money – or very little money – thru corrections probably due to balance or luck maybe. Anyway, I so hope this will be affordable enough that I can participate in this one of kind service." – Paid-up subscriber Debra W.

"I honestly do not know how long I have subscribed. I sat on the sidelines just watching till this year. The last half of the year is the first time that I put money in on your recommendations. However, I have not done as you have directed. After putting money in I have watched it somewhat aggressively. I go long on what you go long on and short what you short. And then I get out on reversals. Got bit a little on Tesla, GM, and gold/silver. Did well in AutoZone and Hertz. Avis is coming around. Missed Fannie Mae altogether because I had to pay extra to get that market and just didn't want to yet. Because you always tell why you do things I can understand why directions change and do not wait for the word to get out. I've lost money in the markets before. I do not like to lose 30% on something before moving on. Much better at cutting losses and holding winners than I used to be. Love your direction. Your forecasting is a whole lot better than mine. I'm a happy camper. Thanks for what you do." – Paid-up subscriber Robert C.

Regards,

Justin Brill
Baltimore, Maryland
January 10, 2017