Why Gold Can Keep Climbing Higher

Editor's note: We've been covering gold's move higher at length in This Week on Wall Street. I told you the metal was set to go higher as far back as last October, when gold was at $2,700 an ounce. Now, it's at $4,100 an ounce.

Back then, I said I was counting on "experts I trust" who thought gold would head higher.

One of those experts is my colleague Brett Eversole. Earlier this week, in an issue of the free DailyWealth e-letter, Brett wrote a simple, clear thesis for why gold can continue to rise... and what tends to happen to gold after extreme moves like these.

Today, I'm sharing his note in its entirety.

There's nothing better than a stealth bull market...

In a typical bull market, when prices begin rising, it almost always draws attention. Folks see the gains and assume they can make easy money. So the crowd jumps in. The excitement leads to more upside, for a while... but it eventually creates a painful bust.

But a stealth bull market is different. Most folks don't even notice the rally. Investors don't become euphoric... which means the gains can last longer than anyone believes possible.

That's what's happening right now in gold. The metal has soared to $4,000 an ounce. But most investors don't understand what's going on.

Plus, the metal just achieved something rare. It jumped for eight straight weeks... And according to history, that means we should expect higher prices in the months ahead...

This Rare Signal Points to a Continued Gold Rally

It's rare for a bull market to be a one-way march higher.

Typically, assets rise for a bit, then give back some gains. After that, the uptrend resumes.

That's not happening in the gold market right now. The metal has risen for each of the past eight weeks. Take a look...

Gold is clearly in a powerful bull market. Few investors seem to care... But this stealth boom is accelerating.

Importantly, this string of positive weeks is a rare setup. We've only seen seven similar situations over the past 50 years. And according to history, those moments were darn good times to buy gold.

Here's what happened after similar setups since 1975...

Many investors view gold purely as a portfolio hedge or diversifier. But it's more than that. Gold has produced a healthy 6.2% annual return over the long term.

Still, you can do much better if you buy when gold is in the middle of a powerful bull market – like it is today.

Setups like this have led to gains of 5.5% over six months and 12.7% over a year. That's more than double the typical annual return for the metal... Plus, gold was higher a year later 71% of the time.

Gold is up more than 50% this year. But most investors aren't paying attention. That tells us the boom isn't over yet.

Folks will wake up eventually... They'll buy in droves, pushing prices much higher. And their overenthusiasm will set the stage for a bust.

We're not there yet. And that means we expect the gold bull market to continue.

Good investing,

Brett Eversole

What Our Experts Are Reading and Sharing... 

• At the start of Donald Trump's presidency, everyone thought his business-friendly, hands-off policies would lead to more mergers and acquisitions (M&A). But instead, tariff uncertainty held things up. Now, the deals are happening. M&A activity is surging, and Goldman Sachs expects even more next year.
• This year, the Nobel Prize in Economics was awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt. (Technically, it's the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel... but economists will know what I'm talking about.) Fittingly for 2025, it rewarded those who study innovation in economics. Here's economist and writer Noah Smith with a deep, yet accessible explanation.
• OpenAI entered yet another "circular" deal this week. The company will now partner with Broadcom (AVGO) in a $10 billion deal to build its own AI chips.

New Research in The Stansberry Investor Suite...

You can fully believe in the AI future... and also accept that we're heading toward a bubble.

We've seen it happen time and again throughout history. Railroads, bicycles, the Internet – all these inventions went on to change the world. But they also experienced bubbles that completely wiped out investors.

Similar patterns are playing out with AI today. 

As the Stansberry Innovations Report team explains in this month's issue, AI will be a big part of our future...

AI has the potential to transform not just what we do but how we think about work, creativity, and intelligence itself. Just as electricity (and later, the Internet) powered the industries of the 20th century, AI is becoming the engine of the 21st.

We foresaw these changes when we launched the Stansberry Innovations Report back in 2018. And our subscribers have benefited from it.

But they also see the cracks in the financing – ones that could open wide if things don't go exactly right...

One example is Thinking Machines. The AI startup led by former OpenAI executive Mira Murati recently raised $2 billion in seed funding at a valuation of $10 billion. It's the largest seed round of investing in history.

And yet, the company has no product. It won't even say what it's building. Someone who attended the sales pitch called it "the most absurd meeting" of their career.

In bubble territory, absurdity is no longer disqualifying. It's a feature.

That's why they've found a way to invest in volatility.

See, there's a certain class of businesses that benefit when markets take violent swings... These companies do well in both bull and bear markets, as optimism and fear drive profits.

If you haven't yet guessed, I'm talking about financial exchanges. And this month, the team recommends one of the top names in the space. As you'll see, this company is practically a "synonym for innovation."

Stansberry Investor Suite subscribers can read the entire report here.

If you don't already subscribe to The Stansberry Investor Suite – and want to learn more about our special package of research – click here.

Until next week,

Matt Weinschenk
Publisher and Director of Research

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