Nick Hodge,
Publisher
Aug. 14, 2024
Gold medals at the Olympics.
A gold star.
Worth your weight in gold.
You have a heart of gold.
Humanity seeks gold as something supreme, good, and inherently valuable.
Until the past century, many currencies used by homo sapiens were backed by gold, including the dollars you now need more of to make ends meet.
Bad things happen when we deviate from the golden path. Because as we’re taught early in life, all that glitters isn’t gold.
Rome’s decline was commensurate with the decline of precious metal content in its coinage.
The US had — and still has — serious monetary problems when we vacated the gold standard back in the 1970s.
Zimbabwe is taking the lesson to heart.
You might recall the hyperinflation that the country faced in 2008. With an inflation of 500 billion percent (not a typo), family savings were wiped out as images circulated of suitcases full of cash being exchanged for goods as simple as loaves of bread.
How Did You Feel While Markets Were Cratering?
The Foundational Profits August issue is out and with recent world events, this could be the most important issue of the year.
I put together a simple 4 minute video breaking down everything you can expect to find within the issue.
The video is 100% free and I implore you to take a few minutes of your time and give it a watch.
All you have to do is click this link. The video will be at the top of the next page.
Since then, the country has tried to reestablish its currency five different times. And all five times have failed.
This year, Zimbabwe launched a new currency backed, at least in part, by gold. In April, the ZiG — short for Zimbabwe Gold — was introduced. Its central bank is backing the currency with US$100 million and 2,533 kilograms of gold worth some US$185 million.
It’s early days, but Bloomberg recently reported that “official statistics suggest that the ZiG has helped to rein in surging price pressures since its April launch.”
Maybe they’ve finally found the golden ticket.
The globe’s central banks, of course, have been enamored with gold of late, with purchases the past two years at record levels over 1,000 tons each year.
They aren’t the only ones.
Respected and well-known investors and billionaires have been touting the benefits of gold as well — and putting their money where their mouth is.
Ray Dalio, who’s worth $19.1 billion, warns that inflation will send America back to the 1970s. He says when that happens, “You want things that are basically anti-money… you want gold.”
Naguib Sawiris, who’s worth $3.4 billion, says 20% to 30% of your portfolio should be in gold for a very good reason: “Let’s say inflation comes in and there is a crash in the stock market for one reason or the other, then you will be very happy you have a position in gold.”
Indeed, when stock market volatility ramped up this month to levels only seen in 2008 and 2020, all gold did was hold firm at all-time record high prices.
And now, the legend who made $4 billion shorting the housing market is, as they say, sitting on a gold mine.
He’s been loading up on shares of this small gold miner as billionaires back themselves with the yellow metal while we endure a period of rampant inflation and slow growth.
You might be able to strike gold with it as well.
Call it like you see it,
Nick Hodge
Publisher, Daily Profit Cycle