Tonight we are going to be announcing a brand new junior mining company that you do not want to miss. We’ve been extremely selective of the stocks that we have presented to our members, and we are very excited to share this company with all of you tonight!
Pundits don’t scare me, in fact, I welcome diversity of opinions because when you put two opposing ideas together, the majority of the time, the truth will lie somewhere in the middle. I just finished reading an article on Market Watch by Nicholas Vardy who’s goal was to trash gold, calling it a “barbarous relic,” citing John Maynard Keynes who famously dismissed gold as such. In case you didn’t catch it, that last name is where we derive Keynesian economics. His underlying point was that stocks provide cash flow, and a significant upside over many years and gold is just a store of value.
He attacked gold bugs for dismissing stocks as a viable investment, and seeing gold as the supreme investment. He went on to point out that gold performs well under times of uncertainty, and since the economy has been improving, gold is going down like a speculative commodity. Over the last five years, gold has gone up and down ultimately being flat, and the S&P is up 85%. He is sure to point this out.
His article was a huge hat tip and endorsement of the system that is in place, and the reason why he felt everyone should just sell their gold and only buy stocks.
I felt the need to address this mentality after reading this article. I don’t disagree with buying stocks which is why I advocate for purchasing stocks. I’ve spent time educating our readers on the fallacy in thinking that stocks are just paper, essentially equating them to dollars. I think that stocks should have a significant place in everyone’s portfolio because of what can happen to your money owning stocks over many years.
The author of this Market Watch article dismissed any possibility of there being a systemic collapse in our system, and basically mocked anyone who believed that this was a viable possibility. I strongly disagreed with this, and I do believe that there is a real threat of a currency crisis and a loss of faith in the world’s reserve currency. If you’ve seen our documentary, “The Death of King Dollar – End of the Petrodollar,” you will understand the magnitude of what is in front of us as things are rapidly changing. Gold will serve as a very vital storage of value in the event of a massive world shift, and a faith crisis in the currency. American’s don’t appreciate the stability that this country has enjoyed and the potential for real change seems so foreign to everyone, but so did a stock market crash in 2008 and so would of two jets hitting major skyscrapers.
Just because people haven’t lived through something, does not mean they aren’t possible. Citizens of foreign countries who have seen currency crises understand what it means to see your purchasing power maintain its integrity, and how gold stored in your house is not part of the banking system having its own benefits in the event of radical actions taken by officials. Not to mention, gold is harder to have taken from you in the event of a lawsuit.
I agree that over the course of decades, gold should not be looked at as an investment, and that is when I would suggest looking into stocks, and for that matter — gold stocks. There are other places that offer interest that will most likely outperform gold over the course of three decades. However, in the next three to five years, I can definitely see gold acting and performing like an investment based on where it’s trading currently. With gold companies losing money at $1,200 gold, this business model won’t last long. When supply drops prices, will correct upwards inevitably. I prefer to invest with inevitability.
Another point to consider is that the economy is no better off than it was back a few years ago when gold was popular. The system is more artificially held together than ever with the U.S. government in deeper debt, and with higher expenses than ever. The dollar bubble is more ready to pop now than ever in history, so having some gold in your portfolio is highly recommended, especially in times like this. If you have not taken the time to make gold a part of your portfolio, I encourage you to do so.
Is it possible to see gold go to $1,000? I would say it’s possible, but I’d say it’s more possible to see it go back to $1,500-1,900 in the next 3-5 years. With any of the other wildcards in play, it could go much higher.
Look for our early stage resource stock tonight that we are profiling. This company has an aggressive game plan, and it could be one of the few that rises to the top in this resource depression. Be on the lookout for the full write-up!
Chief Editor at CrushTheStreet.com