This story was originally published here.
Today, gold is in a full-fledged bull market.
The metal blew past $1,700 an ounce in April – a gain of 45% in a little more than 18 months.
I see no end in sight for these price gains. Bull markets end when there's no one left to buy. And as the coronavirus pandemic rages on, investors have several reasons to keep buying gold.
Importantly, the forces at work here are bigger than any individual crisis. They've influenced gold prices for hundreds of years.
So what's driving this gold bull market? Let's find out… And I'll show you a better way to profit than simply buying physical gold.
Gold price increases are typically due to three interconnected fears – collectively known as the “Fear Trade”…
- Fear of War
Whenever war breaks out, the loser's currency becomes worthless – German marks and Japanese yen at the end of World War II, for example. (Less recognized is that the winner's currency also suffers from the inflation brought on by the deficit spending required to fight the war).
- Fear of Recession
Economic recessions bring low interest rates. This means there's less competition from income-yielding assets that “barren” gold has to overcome for price gains.
- Fear of the Unknown
The value of fiat money – the printed paper that governments declare to be legal tender – is based on confidence in the issuing nation's economy. The unknowns can influence confidence. These can be internal unknowns: How much inflationary paper will be printed to fund the government? Or they can be external: How will the spread of coronavirus hurt a nation's economy?
Currently, war may not be an immediate concern… but Fear of Recession and Fear of the Unknown are driving gold higher.
Editor's Note: To read the full story, click here.
Gold Expert’s newest prediction could send $7 stock soaring
Something strange is happening in the financial system…
And according to the Wall Street Journal, it's causing some investors –- including the world's biggest banks – to move massive amounts of cash out of the banking system.
I recently met up with widely-followed hard asset expert Bill Shaw at his firm's east-coast headquarters.
Over the past two decades, Mr. Shaw's firm has grown from tiny startup into a publishing powerhouse – serving more than a million readers in more than 150 countries.
Since 1999, the firm owes its legendary status as a trusted source of financial research to its eerily-accurate track record of often-controversial financial predictions, including:
- The Dotcom Crash…
- The bankruptcy of General Motors…
- The real estate bubble…
- The fall of General Electric…
- And the bankruptcy of Freddie and Fannie.
Recently, Bill revealed a brand-new prediction that has caught many by surprise.
He explained, “I'm not the kind of guy who gives in to hype and big predictions… that's why I've waited nearly a decade — to make sure the timing is right for the biggest prediction of my career.“
He went on to explain that over the next few years, he sees massive bull market developing in a sector of the economy that, over the years, has been completely ignored by nearly every investor in America.
The hard-asset expert said:
“Events happening around the world are about to come together at just the right time to create a perfect storm, causing some of the world's biggest investors to dump cash and stocks – and pile into this long-hated asset.
In fact, it's already begun.”
After dedicating hours to painstaking examination, ensuring he considered every possible angle, Mr. Shaw has put together a free presentation to explain exactly what he sees coming… and the best way for Americans prepare.