The Case for Investing in Gold (and Silver)

Recently, our co-founder and publisher, Brian Hicks, made a special appearance to tell you a story about an incredible investment in gold and silver. He also helped to build the case for why now is such an opportune time to be investing in gold and silver yourself…

But today, I want to really drive home the point that investing in gold and silver isn’t an option right now. It’s a necessity. So let’s take a little time to talk a little more about why you need to own some of the oldest store of value on this planet: gold…

Why You Should Be Investing in Gold (and Silver)

You see, gold, as well as silver, has long been regarded as a safe-haven asset during periods of uncertainty, and recently, it’s surged to new all-time high prices, prompting many investors to give this “boring” investment a second or third look. And they’re wise to do so, because this recent outperformance is driven by the convergence of three powerful forces: a weakening dollar, global economic stagnation, and geopolitical turmoil.

These factors have created a perfect storm, making gold an increasingly attractive investment as demand for this precious metal rises. And they don’t look to be abating anytime soon. So, for those looking to protect their portfolios while potentially profiting from gold’s upward trajectory, understanding these forces is crucial…

A Weakening Dollar: Fueling Gold’s Rise

The strength of the U.S. dollar plays a pivotal role in determining the price of gold. Historically, the relationship between the two has been inversely correlated. As the dollar weakens, gold prices tend to climb, and the current environment is no exception.

With inflationary pressures, rising government debt, and monetary policies aimed at keeping interest rates low, the dollar has been losing value against other currencies and against real-world commodities like gold. When the dollar weakens, it costs more to purchase gold in dollar terms, making it more expensive for those holding U.S. currency.

However, for investors looking for a safe store of value, this increased cost only amplifies gold’s appeal as a hedge against currency devaluation and leads to increased demand. And you can place a pretty safe bet that as long as the dollar remains under pressure, gold will continue its ascent.

Investing in Gold (and Silver) as a Hedge Against Stagnation

But a weak dollar isn’t the only thing driving gold prices higher and leading more investors to get in on this age-old market…

The global economy is facing significant headwinds, too. Sluggish growth, coupled with rising inflation in many developed countries, can easily lead to an environment where traditional investments, such as stocks and bonds, underperform hard assets.

That’s why, in times of economic stagnation, investors often flock to gold, seeking refuge from the volatility and uncertainty that pervades other markets.

Gold is viewed as a stable store of wealth, maintaining its value even when other assets decline. So during periods of slow or negative growth, demand for gold rises as investors seek to preserve capital. This heightened demand, driven by a lack of confidence in other investment avenues, pushes gold prices higher and higher without fail.

Geopolitical Turmoil: Adding to Gold’s Allure

But there’s a third force coming into play that’s driving gold’s ascent and is likely to keep pushing investors toward the shiny metal. And that’s geopolitical tension, or, more simply put, war…

From escalating conflicts in Eastern Europe to growing tensions in Asia to a firestorm brewing in the Middle East, the geopolitical landscape is becoming increasingly volatile everywhere you look. And in times of geopolitical unrest, investors inevitably turn to gold as a safe haven, knowing that it is not subject to the political and economic risks that can destabilize other markets.

Investing in Gold (and Silver) Miners for Outsized Gains 🤔

The main bullet point in this presentation is obviously that when the forces of a weakening dollar, economic stagnation, and geopolitical turmoil continue to converge, gold is positioned to rise even higher, and folks would do well to start investing in gold and silver if they haven’t already. But for investors looking to really capitalize on this movement, one key strategy is to focus on gold miners, instead of on gold itself. Particularly those with new gold discoveries…

You see, as the price of gold climbs, the stock prices of miners with significant new finds tend to experience exponential growth, far outpacing the metal itself. So for savvy, well-positioned investors, the opportunity to gain outsized returns through gold miners could almost be seen as a fourth force pushing them beyond even gold’s impressive performance.

My investor community and I recently uncovered one small company in particular that recently acquired what could be the last great gold discovery in history. And as the price of gold moves higher, we expect this discovery to propel the company’s stock to potentially unbelievable heights. 

So if you haven’t already, now is definitely the time to consider how gold, and especially gold miners like this one, can play a critical role in your portfolio during these uncertain times.

To your wealth,

Jason Williams

@TheReal_JayDubs

Angel Research on Youtube

After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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