More reasons to be bullish on gold...
Editor's note: Yesterday, we planned to continue with more insight from rare-coin expert Van Simmons. But the bull market in gold is one of the most important trends in the market today... And given the scope of today's Digest, we wanted to provide further insight into the gold market to Digest Premium readers from our friend Paul Mampilly, a former hedge-fund analyst.
Sentiment against gold is at a short- to medium-term high. This is good if you own gold. But it's bad if you're betting on gold to go down.
Look at this chart of gold...
I doubt gold is going to fall much more from here. This price action is telling me there aren't many gold sellers left at these prices. I (Paul) have seen this situation before... I bought gold near the bottom in 2000 for $300 an ounce, when everyone thought I was stupid to own.
Just as the price action on gold is showing all the signs of a medium-term bottom, you have accumulation starting up in gold futures... Data from the U.S. Commodity Futures Trading Commission, a government agency, show bullish wagers are rising to their highest level since mid-November. In my experience, this is not a negative. This is accumulation that precedes a rally, rather than a sign of over-optimism.
And if you look at gold analytically, it also looks like a buy. I believe two things drive gold prices: Fear of inflation and fear of additional monetary stimulus.
– Paul Mampilly
More reasons to be bullish on gold...
In today's Digest Premium, a former hedge-fund analyst who bought gold at $300 an ounce explains why he's bullish on the precious metal today.
To continue reading, scroll down or click here.
Stansberry & Associates Top 10 Open Recommendations
(Top 10 highest-returning open positions across all S&A portfolios)
As of 01/21/2014
| Stock | Symbol | Buy Date | Return | Publication | Editor |
| Rite Aid 8.5% | 767754BU7 | 02/06/09 | 674.3% | True Income | Williams |
| Prestige Brands | PBH | 05/13/09 | 414.0% | Extreme Value | Ferris |
| Constellation Brands | STZ | 06/02/11 | 273.6% | Extreme Value | Ferris |
| Enterprise | EPD | 10/15/08 | 253.4% | The 12% Letter | Dyson |
| Ultra Health Care | RXL | 03/17/11 | 229.1% | True Wealth | Sjuggerud |
| Ultra Nasdaq Biotech | BIB | 12/05/12 | 215.7% | True Wealth Sys | Sjuggerud |
| Ultra Health Care | RXL | 01/04/12 | 187.5% | True Wealth Sys | Sjuggerud |
| GenMark Diagnostics | GNMK | 08/04/11 | 186.9% | Phase 1 | Curzio |
| Altria | MO | 11/19/08 | 183.6% | The 12% Letter | Dyson |
| Fluidigm | FLDM | 08/04/11 | 182.7% | Phase 1 | Curzio |
Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any S&A publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio.
| Top 10 Totals |
| 1 | True Income | Williams |
| 2 | Extreme Value | Ferris |
| 2 | The 12% Letter | Dyson |
| 1 | True Wealth | Sjuggerud |
| 2 | True Wealth Sys | Sjuggerud |
| 2 | Phase 1 | Curzio |
Stansberry & Associates Hall of Fame
(Top 10 all-time, highest-returning closed positions across all S&A portfolios)
| Investment | Sym | Holding Period | Gain | Publication | Editor |
| Seabridge Gold | SA | 4 years, 73 days | 995% | Sjug Conf. | Sjuggerud |
| ATAC Resources | ATC | 313 days | 597% | Phase 1 | Badiali |
| JDS Uniphase | JDSU | 1 year, 266 days | 592% | SIA | Stansberry |
| Silver Wheaton | SLW | 1 year, 185 days | 345% | Resource Rpt | Badiali |
| Jinshan Gold Mines | JIN | 290 days | 339% | Resource Rpt | Badiali |
| Medis Tech | MDTL | 4 years, 110 days | 333% | Diligence | Ferris |
| ID Biomedical | IDBE | 5 years, 38 days | 331% | Diligence | Lashmet |
| Northern Dynasty | NAK | 1 year, 343 days | 322% | Resource Rpt | Badiali |
| Texas Instr. | TXN | 270 days | 301% | SIA | Stansberry |
| MS63 Saint-Gaudens | 5 years, 242 days | 273% | True Wealth | Sjuggerud |
More reasons to be bullish on gold...
In today's Digest Premium, a former hedge-fund analyst who bought gold at $300 an ounce explains why he's bullish on the precious metal today.
To subscribe to Digest Premium and receive a free hardback copy of Jim Rogers' latest book, click here.
You must watch this before purchasing Bitcoin... Jim Rogers likes Japan and China... Gold stocks are rallying... How to make 27 times your money in gold stocks... A major announcement coming January 25... It's a bull market...
The market for virtual currency Bitcoin is growing by the day...
Online retailer Overstock – which does $1 billion in annual revenue – just announced it would accept Bitcoin as payment.
David Marcus, president of online-payment processor PayPal, said "We're believers in [Bitcoin]" on the social-networking platform Twitter.
eBay UK is opening a "virtual currency" marketplace on February 10 for the exchange of Bitcoin.
Two Las Vegas casinos – The D and Golden Gate – announced they would accept Bitcoin at their front desks, gift shops, and restaurants (but not on the casino floor).
We'll soon see the first Bitcoin ATM in New York's East Village.
And yesterday, the UK's University of Cumbria announced it will begin to accept Bitcoin for tuition (the first university in the world to do so).
The stories continue...
We haven't dedicated much space in the Digest to Bitcoin. We're skeptical of the new digital currency. But based on the feedback we've received since Bitcoin began stealing headlines, many of our readers are interested in the topic. You can read a long Digest we wrote on Bitcoin here.
As you can see from the chart below, the price of Bitcoin has skyrocketed (with incredible volatility):
The rise in price and popularity of Bitcoin shows people want out of fiat currency. We support the sentiment. Governments around the world are in a race to debase their currencies.
But Bitcoin is a speculation. We're not saying something won't come around to displace the U.S. dollar... We just don't think it will be Bitcoin.
Our own Steve Sjuggerud recently put together a presentation sharing his thoughts on Bitcoin. If you're interested in learning more about the digital currency and hearing Steve's take on it, be sure to watch it.
Steve also shares what he views as the best alternatives to Bitcoin and the U.S. dollar. He recommends the Chinese renminbi and various forms of gold. He thinks both are great ways to protect yourself from a declining dollar, collect interest, and have great upside potential.
You can view Steve's video presentation by clicking here.
One of the world's best international investors, Jim Rogers, agrees with two of Steve's biggest macro calls for 2014...
Like anyone with a basic understanding of economics, Rogers understands the massive quantitative easing we're seeing around the world can't last. As he told Internet news service Reuters TV, "When it pops, when this artificial sea of liquidity dries up, it's not going to be fun... But I don't see any reason why it will stop any time soon."
Rogers called Japan and China two of his top places to invest in this year. While U.S. stock markets are near their all-time highs, Japan is still 70% below its record highs. Rogers also noted a new law that makes it tax-free to invest in Japanese stocks... "I've been investing a long time, and every time a country does that, people invest," he said.
As for China, Rogers said the government has committed massive resources to cleaning up pollution, railroads, and health care. He believes stocks related to those sectors will perform well.
Steve is bullish on Japan because Prime Minister Shinzo Abe has pledged to print as much money as necessary to stoke Japanese inflation and boost asset prices. He believes we'll see Japanese stocks continue to soar, just as we've seen in the U.S. (They're up 80% in the last two years, as measured by the Nikkei Index.)
And Steve likes China because the stocks are dirt-cheap. The past two times they've been this cheap, Chinese stocks made triple-digit moves higher. And he believes fears of a Chinese bubble are overblown... Yes, China has a lot of debt. But like the U.S., Steve believes we'll see a big rally in the intermediate term.
Both of Steve's recommended Japanese stocks are still rated "buy" in his portfolio... As are his three favorite ways to buy Chinese stocks. You can access these recommendations with a subscription to True Wealth. Learn more by clicking here.
In the January 15 Digest, we noted that several S&A analysts were getting bullish on gold stocks...
As DailyWealth Trader editor Amber Lee Mason pointed out, sentiment was negative. S&A Short Report editor Jeff Clark explained technical indicators pointed to a rally. Plus, big miners were buying up dirt-cheap juniors... And after falling more than 50% in 2013, gold stocks have never been cheaper compared with the price of gold.
Since that Digest, shares of the Market Vectors Gold Miners Fund (GDX) are up 5%. But there's still a fortune to be made in the sector. As we've said many times, catching an early bull market in junior miners is one of the best ways to get rich in the market. When these small-cap, speculative stocks rally, they can jump thousands of percent.
In an internal e-mail to S&A colleagues, S&A Resource Report editor Matt Badiali told the story of the last time he profited from a bull market in junior miners... and why he thinks we're in the midst of one today...
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S&A Short Report editor Jeff Clark is making a big announcement on January 25... And you won't want to miss it.
Jeff thinks we're about to see a repeat of 2008... It was a tough year for the markets... And most investors lost a fortune. But it was the best year of Jeff's career. He recommended 10 different trades that could have doubled your money.
Again, we won't reveal the full announcement until January 25... But you can watch a short trailer about this idea (including a live interview with Jeff) here.
A quick look at the list of new highs shows it's a bull market. We're seeing highs in aluminum, private equity, biotech, health care, energy, and financials. The trend is up...
New 52-week highs (as of 1/21/14): Alcoa (AA), ProShares Ultra Nasdaq Biotechnology Fund (BIB), Blackstone (BX), Cameco (
In today's mailbag, a question on Bitcoin... And, in a rare occasion, a subscriber actually thanks us for our marketing. Send your notes to feedback@stansberryresearch.com.
"Not sure which publication should or will cover the subject of Bitcoins. I have no knowledge on this subject, not where to buy, trade or use them. Have received several 'newsletters' (advertisements) but no real info. Will Stansberry and Asso. address this subject? Thanks." – Paid-up subscriber Eli E. White
Goldsmith comment: First, I'd direct you to the Digest we mentioned above. (You can read it here.) And as I wrote today, you should certainly see Steve's take on Bitcoin before making your decision. You can do so here.
"I love this time because I subscribe to two of the best. I enjoyed the seminar last night. But it sort of came as no surprise and felt too much like a shot at marketing. Regardless, these things are appreciated because there is always a seed of good.
"As someone who has been a successful web developer for many years copy cats are such a huge form of flattery that you have to accept the evils of it. If for no other reason than the fact that you know you are the best.
"I had to laugh at my free report from the seminar because the recommendation was something that I have had for a long time. Not a winner so far. But not a loser either.
"I realize that this is all part of your business. Sometimes the marketing people send me something that honestly makes me laugh just because it is such a come-on. Truth be told based on how well I have been doing. My response is market away. If you had not done the ads for End of America on the Speed Channel I wouldn't be a subscriber.
"Porter, I want to really and sincerely thank you for having the people that write the letters and do the research and the efforts to teach people how to invest wisely. As for me... my favorite stuff are the charts and graphs. Jeff Clark is the best. Doc and Dan make great sense to me. I can always see why. But your stuff has unique depth and perspective. The keyword is 'unique.'
"Regardless, of the report card. Thanks to everyone for being nothing less than the best. Last night there were about 8000 people who feel the same way." – Paid-up subscriber Jeff Spranger
Regards,
