Mike Fagan,
Editor
Aug. 16, 2024
What a banner year it’s been for gold… and we’ve still got the entire second half to go!
After languishing in that US$1,200 to US$1,800 per ounce range for the last DOZEN or so years, gold truly began launching into orbit in February… and hasn’t looked back since!
At last check, the yellow metal is right on the precipice of breaking above US$2,500 an ounce — all-time high territory. And that may be just the start of even greater things to come.
Mind you, it’s not just brand new all-time highs seasoned gold investors are looking for.
The real time-tested metric for determining the overall health of any bull market is in the all-important pullback days, which, let’s face it, can be a bit unnerving at times.
Naturally, hitting new highs is what drives the headlines and drives the excitement. But what you should really be looking for is a series of higher-lows coupled with those higher-highs.
And that’s precisely what we’ve been witnessing in today’s gold market as the bulls lead the charge into the second half of the year.
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In lockstep with the yellow metal, M&A in the gold space is sharply on-the-rise with the most recent tectonic buyout coming just days ago with Gold Fields’ ground-shaking US$1.6B purchase of Osisko.
That acquisition gives the large-cap South Africa-based miner full ownership of the Windfall Project in Quebec, one of the world’s highest-grade gold development projects.
It certainly won’t be the last large-scale gold buyout we see this year.
You see, what we have brewing is a “perfect storm” scenario for gold to trek substantially higher in the near to mid-term, potentially into that US$3K to US$4K per ounce range.
Among gold’s current top drivers is the high level of central bank buying we’ve been witnessing of late. In fact, over the last few quarters, central banks have been loading up on gold bullion at record levels — more than 3X the long-term average.
Interestingly enough, it’s not just the usual suspects like China and Russia that are stockpiling the world’s most trusted safe-haven metal.
Other BRICS nations — such as India, Iran, and Egypt — are fast realizing that the only way to avoid a devastating default is to shore up their debt in a significant way. And the only way to do that is through gold.
Currently, the global government debt load is only gold-backed to the tune of about 1%. All at once, nations are coming to the stark realization that they’re going to have to boost that figure by a factor of multiples… to the 5% to 10% range at a very minimum… to fend off the specter of fiscal ruin.
Already, the uptick in physical gold buying by BRICS nations has driven gold to new record-high territory… a trend that’s poised to only strengthen going forward.
Another key tailwind forming in the gold space is an easing by the Fed, which will kick off next month and will, in all likelihood, extend for the next several years.
And further, when it comes to heightened stock market volatility and rising geopolitical tensions, gold has only continued to show its strength and resiliency as a safe haven for investors who understand the importance of proper diversification.
A couple weeks back, when US markets cratered by multiple percentage points — sending the VIX to levels not seen since 2008 and 2020 — gold held true and steady near record-high territory.
Once again, it all comes down to that bedrock of higher-highs and higher-lows we’ve been talking about… and it points to what may soon prove to be the greatest gold bull market the world has ever seen.
With those tailwinds in play, the major and mid-tier gold producers have been rising steadily since around the beginning of March… and we’re beginning to see that same upward impetus in the best-positioned small-caps, which is where the really, really big gains can occur.
Our in-house gold expert Gerardo Del Real of Junior Resource Monthly fame has been keeping a close eye on one particular small-cap gold firm that’s on to something potentially huge in America’s great northwest.
It’s a timing thing… and if Gerardo is correct in his assessment (which he usually is!), those who follow his lead could be looking at very substantial gains that could materialize in near-overnight fashion.
It’s a company that’s been working diligently, yet quietly behind the scenes, advancing its flagship gold project, which, by the way, also hosts a rare element the US Department of Defense is very interested in procuring.
In fact, the DoD just awarded the company millions of dollars for access to this critical element along with tens of millions more to advance construction readiness and permitting of the project.
And that’s not even taking into account the immense treasure trove of gold sitting just below surface.
We’re talking about one of the largest and highest-grade open pit gold deposits in the entire United States.
And yet, due to the protracted quiet period I just mentioned, very few investors are paying attention at the present moment. The “most critical” moment, I might add!
And while all mining projects cause some level of disturbance to the surrounding landscape, this particular project is considered a superfund brownfield site with a primary ESG mandate of reopening a key salmon migration route that has been closed off for far too long.
Is Big Tech Due for Another Pullback?
August started out rough with thousand-point drops in the stock market...
But we didn't panic (and neither should you).
In fact, many of our positions actually gained from the disruption. Our AI pick added 39% over the past three months (vs the NASDAQ’s 2.0% over that same period). That pushes our total return on that stock into the triple digits, all while other investors were fleeing tech.
There’s a lot more ahead... These recent pullbacks have created new opportunities. They include new small tech stocks that are positioned to do well regardless of what happens with Big Tech. This is your chance to make the most of the biggest moves in the markets.
That level of strong ESG commitment and focus is something you don’t often see in the mining world… although it certainly should be.
The project even has the backing of a well-known billionaire.
Again, the timing on this one is absolutely critical. Click here to watch Gerardo’s complimentary video on The Greatest Gold Trade Ever.
Gold bug or not… you definitely do not want to miss this timely presentation.
Yours in profits,
Mike Fagan
Editor, Daily Profit Cycle