Act Now for Potential Gains of 700%

Dear Money & Crisis Reader,

Buying physical gold is one of the few ways to protect your wealth against a catastrophic financial crisis.

The economy could collapse… the dollar could be devalued… our very government could be wiped out…

And gold will still hold value as the perfect means of exchange.

But protecting yourself against the next financial crisis isn’t the only reason to invest in gold.

Gold is a stellar investment opportunity in its own right… And it looks like it’s gearing up for another legendary tear.

Jim Rickards, one of the world’s leading experts on gold investing, is here today to tell you all about it.

All the best,

Owen Sullivan
Editor, Money & Crisis

Editor’s note: Jim is one of the brains behind all the strategies you read in Money & Crisis and the bestselling author of Currency Wars.

For a limited time only, Jim is sending readers a FREE copy of his brand-new hardcover book, The Road to Ruin: The Global Elites’ Secret Plan for the Next Financial Crisis.

This shocking account of the next financial crisis reveals one of the biggest threats to your wealth today… and shows you the simple steps you can take to protect your money and your family. Claim your FREE copy now.

Gold Is in Short Supply… It’s Only a Matter of Time Before Investors Catch On

By Jim Rickards

The third bull market in gold of my lifetime has begun.

The first bull market started in August 1971 and ran until January 1980. Gold gained 2,190% in just over seven years.

The second bull market started in August 1999 and ran until September 2011. Gold gained 655% in twelve years.

The third bull market started in December 2015. In just over two years, gold has gained 27%.

This new bull market has years to run and will produce gains of 700% or higher as gold makes its way to an implied non-deflationary price of $10,000 per ounce in the next global liquidity crisis.

In the last two bull markets that began in 1971 and 1999, the largest gains were not in the early years. Double-digit gains came in the third, fourth, and fifth years as acceptance of the reality grew and more investors piled in.

This means the sweet spot to participate in this new bull market in gold is right now, after two years of back-to-back gains, but before the wider investment community is alert to the reality of a new secular bull market.

Why?

Gold is in Short Supply

Gold is such an emotional subject for investors, they sometimes forget that supply and demand still dominate gold price dynamics in the long-run.

The news on that front for gold investors is uniformly good.

I travel the world continually and have frequent contact with firms who handle physical gold. These firms include gold miners, refiners, secure logistics providers who operate armored cars, vault operators, gold dealers, bullion banks, and gold exchanges.

In short, I have a global network of front line contacts in the gold industry from Sydney to Shanghai, and from London to Lugano and beyond.

Everyone I speak to has the same story — physical gold is in short supply.

Bear in mind I’m writing here of physical gold, not paper gold. There’s no shortage of paper gold. You can buy and sell all the paper gold you want with one phone call to your broker or one click on your computer.

When I refer to physical gold I’m talking about ore, doré, scrap, and bullion bars and coins. The real stuff.

Paper gold is fine if you want short-term price exposure or you want to hedge your physical exposure. It’s even better if you want to manipulate markets with little or no money down. That’s what governments and certain hedge funds do.

But if the paper gold market becomes overleveraged relative to the amount of physical gold available to back-up the gold futures, options, forwards, derivatives and ETFs, there is a risk of a failure to deliver or a “run on the bank” scenario in which paper gold holders demand delivery of physical gold only to find that there’s not enough gold to go around.

The panic that would result from a physical gold shortage or failure to deliver would send gold prices soaring.

Yet, that’s exactly the scenario I hear repeatedly from my contacts in the gold community.

Excess Demand, Scarce Supply

Miners tell me gold is getting more difficult to locate and extract.

During the bear market of 2011 to 2015, many mines were closed down and miners went bankrupt.

Those mines are difficult to reopen due to capital shortages and environmental restrictions. Even when a new mine can get permitted, it takes years to drill new core samples, complete feasibility studies and actually get back into production.

It’s the same story with gold refiners. They’ve told me they are backordered a year in advance and will not take new customers. Most are operating at full capacity running 24-hours per day.

But almost all of the gold being produced in the world today is going straight to China, Russia, Iran, Turkey, or Kazakhstan, with some allocated for new jewelry fabrication. There is scant demand in the west.

In all events, the supply-demand situation is heavily weighted to excess demand and scarce supply. That’s a recipe for higher prices in general and a super-spike in prices if a major gold dealer or gold exchange fails to make delivery of physical gold.

That kind of supply-demand crack-up that will send gold prices soaring is just a matter of time.

The Time to Act is Now

Some discouraged gold investors may say, in effect, “So what, we’ve seen this before. Just when gold rallies and we get our hopes up, some hidden hand comes along and slams gold in the futures market and the gains disappear. What’s the point?”

I feel your pain.

Personally, I’ve never been affected by the occasional gold slams. Yes they happen, and yes they are a byproduct of market manipulation whether by hedge funds trying to trigger stops or China trying to keep a lid on the gold price until their gold acquisition program is further along.

So you should do what I do: Treat the slams as a gift. Take the interim lows as a good entry point and ride the next wave up. I try to avoid clichés, but “buy low, sell high” is a good way to make money. Buy low and hold on while gold goes much higher is an even better way to make money.

But don’t wait much longer. Annual double-digit gains in gold are yet to come. The time to jump in is now.

Editor’s Note: Click here if you’d like to hear more from Jim. He’s one of the world’s leading experts on money and crisis. And right now he’s giving away FREE hardback copies of his new book to readers of Money & Crisis. Click here to claim yours.

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