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It's Finally Time to Buy Gold

By Sean Goldsmith
Saturday, January 24, 2015

The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
 A safe-haven asset that has been left for dead in recent years is about to soar: gold.
One more Stansberry Research analyst just turned bullish on the precious metal...
 In the January 12 Digest, we explained why Stansberry Resource Report editor Matt Badiali is now bullish on junior mining stocks. He wrote...
We have a tremendous opportunity in junior miners today. As my colleague Dr. Steve Sjuggerud likes to say, they have the three hallmarks of a great contrarian trade... They're cheap, hated, and in an uptrend.

 Longtime readers know when junior miners rally, they soar... making investors five or 10 times their money.
 Then, in the January 15 Digest, we shared Stansberry Short Report editor Jeff Clark's research explaining gold's technical strength...
Gold stocks kicked off 2015 the same way they started 2014 – by breaking above resistance of both the nine-day exponential moving average (EMA) and the 50-day moving average (DMA).
Take a look at this chart of the Market Vectors Gold Miners Fund (GDX)...
The chart also shows a "bullish cross" of the nine-day EMA over the 50-DMA.

This is how strong gold-stock rallies begin.

 When several of our analysts are making the same call, you should pay attention.
In the latest issue of True Wealth, Steve Sjuggerud proclaimed, "It's finally time to buy gold stocks."
Again, Steve looks for assets that have three characteristics: They're cheap, hated, and in an uptrend.
With the U.S. dollar hitting record highs, people have been poking fun at gold bugs. Lots of gold stocks are trading for absurdly low valuations compared with the price of gold. (While gold stocks are down 66% from their 2011 peak, gold itself is down just 32% over the same period.) So they're definitely cheap and hated.
And Steve says gold stocks have bottomed and begun an uptrend. In short, it's time to back up the truck.
 In the latest issue of True Wealth, Steve outlined the reasons you should buy gold today...
Gold stocks have never been more hated than they are right now, as I'll show. Buyers of gold and gold stocks have disappeared.
The U.S. dollar is more loved than ever. The data show that traders have never been more optimistic about the dollar than they are today, which tells me the dollar is at (or very close to) its peak.
We are finally seeing an uptrend in gold stocks... suggesting the worst has passed and that this is a safe entry point.
Global interest rates are at record-low levels, which helps the case for gold. For example, five-year German and Japanese government bonds now pay zero-percent interest, and five-year Swiss bonds have a negative interest rate! With all these record extremes, this is an incredible moment and we have to take advantage of it. Our upside potential from here is 200%-plus returns in two years.

 One reason Steve is bullish on gold is because the dollar is so popular right now. Bullish sentiment toward the dollar is at an all-time high. And speculators have more bullish bets on the dollar than ever.
Everyone is buying dollars. The move has been parabolic...

 And after the Swiss National Bank (SNB) shocked the market by unpegging its currency from the euro, we may have seen the last group of buyers rushing into the safety of "King Dollar." After such a parabolic move in an asset, there's usually a correction.
But what happens when investors pull money out of the dollar? Where will that money go? It's not going into the euro... The SNB signaled its loss of faith in the euro with its surprise move. Switzerland is betting on further weakness.
And in a speech to business owners this week, French President Francoise Hollande echoed the SNB's sentiment. The Wall Street Journal reported...
On Thursday, the ECB will take the decision to buy sovereign debt, which will provide significant liquidity to the European economy and create a movement that is favorable to growth.

 Money isn't moving into the Japanese yen, either. Interest rates are at record lows around the world... You're earning zero interest in German government bonds. And you're actually paying to hold Swiss bonds.
When interest rates are at zero, gold becomes highly competitive with money in the bank. As Steve explained...
Governments can print more money, but they can't print more gold. So when you're given the choice between earning zero percent over the next five years in government-printed paper dollars, or earning zero-percent interest in a hard asset (like gold) that can't be printed, which one makes more sense for you to hold?

 Steve's "investment script" since the Federal Reserve began quantitative easing has been dead on.
He called the "Bernanke Asset Bubble" when former Fed Chairman Ben Bernanke starting printing money... Steve correctly predicted asset prices would soar across the board.
He urged his True Wealth subscribers to buy a house (before real estate prices soared). And he recommended shares of Blackstone Group, the private-equity firm that is now the nation's largest owner of single-family homes... True Wealth subscribers are up 187% on the recommendation in just more than two years.
Steve's subscribers are also sitting on big gains in health care stocks (400%), Berkshire Hathaway (154%), and technology stocks (148%), to name a few.
 He believes gold is the newest addition to the script. And he has recommended a fund that holds 25 of the world's best gold-mining companies. The fund follows a certain set of criteria when selecting its holdings.
The last time gold rallied – from late 2008 until the end of 2010 – the index this fund tracks soared 242%. Steve thinks we could see 200%-plus gains this time around, too.
 You can access Steve's latest issue with a subscription to True Wealth. Considering the quality of Steve's research (and how profitable his recommendations have been), we believe True Wealth is one of the best investment-research bargains in the world... You can purchase a one-year subscription for only $39. Plus, you have the next four months to review Steve's research to decide if it's right for you. If not, we're offering a 100% money-back guarantee. Click here to sign up.
Sean Goldsmith

This Week's Winners
S&P 500 Symbol Change
Netflix NFLX +32.3%
Newfield Exploration NFX +21.4%
Southwest Airlines LUV +16.6%

Countries Symbol Change
Russia RSX +11.3%
Italy EWI +7.9%
South Africa EZA +6.8%

Sectors Symbol Change
Oil Services PXJ +7.3%
Internet FDN +5.9%
Big Oil IXC +5.8%

Commodities Change
Silver +7.5%
Lead +6.7%
Aluminum +4.3%
Date Range:1/15/2015 to 1/22/2015
This Week's Losers
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F5 Networks FFIV -8.7%
SLM Corp SLM -6.3%
NRG Energy NRG -5.6%

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Israel ISL -0.8%
Switzerland SWZ -0.1%
Australia EWA +0.7%

Sectors Symbol Change
Gambling BJK +0.8%
Clean Energy PBW +1.0%
Homebuilding ITB +1.5%

Commodities Change
Natural Gas -10.2%
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Cocoa -5.9%
Date Range:1/15/2015 to 1/22/2015
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