John Carl,
Editor
March 22, 2024
In case you haven’t checked the news yet, gold hit a record high today: $2,200.
Let’s take stock of what this means. In 2000 gold was less than $275 an ounce. Today we’re seeing more than 6x that, and with trading volume that dwarfs anything we’ve witnessed in 20 years.
It’s only March, and it’s already been a momentous year. Gold has made a run for record prices more than a dozen times now, and the momentum continues to build. This won’t be the last high we see, not by a long shot. In fact, if this trend continues, we could be looking at $3,000 much sooner than most investors think.
Why? According to my colleague Gerardo Del Real, the reason we’re seeing such an increase in price movement is because we’re entering a massive resource supercycle.
I sat down with Gerardo last week to seek his wisdom on how we should respond as investors.
Here was his answer:
“Look, we live in very interesting times... when we look at the national debt, when we look at the fact that we're adding a trillion dollars in federal debt every hundred days, and then you combine that with wars on multiple fronts.
And then you add in a ‘behind the scenes’ cold war with China. And then you also factor in a geopolitical situation, at home and abroad, that is ever more unstable. Oh! And by the way, just for fun, it’s an election year! All told, it truly is an interesting time to be alive.
But the setup for me as a contrarian investor in the resource space is the most appetizing that I've seen in all my years of resource investing. It really is a wild confluence of factors that are driving these resource prices. We’re seeing price movements greater than anything we’ve ever seen. And, the good news is if you missed the initial leg up for prices — like we’ve seen all this year with gold — well, I’ve got good news for you: there’s a lot of room left for that to run.”
That truly is good news. And we’ve needed it...
We’ve been getting kicked in the teeth by inflation and the Fed hikes meant to stop inflation (but aren’t). And I’ve also been taking careful stock of the continuous price hikes caused by the aftermath of the pandemic’s global supply chain crisis.
The moment improvements are made in one area (for example, the microprocessor shortage has eased somewhat) we’re hit with a new crisis in a similar area (now the world is running out of power supply components, so all the new microprocessors still can’t operate because they don’t have power). It’s a non-stop comedy of errors, except that nobody is laughing.
Prices are cyclical. But as giant catalysts stack up, they become supercyclical. That’s what we’re looking at.
In the coming days Gerardo is going to hold a special event to examine this supercycle, why it’s creating record resource prices like the gold price we saw today, and why it’s not going to stop or slow down. Gerardo is also going to reveal his plan for how we can protect our wealth and use it to drive record returns.
A signup list for this event is starting now. It’s free to join. Make sure to add yourself to the list so you can discover Gerardo's investment plan for supercycle prices.
I’ll see you there.
Make it your own,
John Carl
Editor, Daily Profit Cycle