Let’s be honest with each other.
Over the past three years, in these columns, I’ve practically screamed out “you should look at buying some quality gold stocks.” Between you and I, my bet is that you haven’t done it.
How can I say that? Because, despite gold rising so aggressively (up about 100% in three years) and regardless of my strong suggestions to buy the metal, of all the financial newsletters published by our Lombardi Financial division, our gold newsletter is the hardest to attract subscribers to. That tells me investors, at least on the retail level, are not in the gold bull market yet.
If you did buy into gold stocks, congratulations! You are the between 3% and 5% of retail investors that I estimate have taken a position in gold bullion. And this is good news.
In the event you did buy gold stocks over the past three years, you’ve likely seem them double in price. But, because so few investors are following the move in the gold bullion market, the biggest gains are yet to come. Hence, it’s not too late to buy. It’s not too late because when investors jump on the gold bull market bandwagon, prices will move much higher than they are today.
Gold and silver are both up 32% in the past 12 months. Yesterday, gold bullion prices rose to a high not seen since. are you ready. January, 1983. Again, if you haven’t bought quality gold stocks yet, it’s time you take a serious look at this investment.
Why do I believe gold bullion prices will move even higher?
It’s my opinion, and only an opinion, that the massive amount of debt the U.S. Government and it’s citizens have accumulated will come back to haunt us in the form of a weak U.S. dollar and difficult economic times ahead. I’m betting the U.S. will eventually want a much lower U.S. dollar to stimulate its economy and to cut off American consumer thirst for foreign products.
What currency will do well when the U.S. dollar devaluates? Gold, I believe, will become the currency of choice, maybe even necessity. Hence, if you, like me, are of the opinion the U.S. dollar will fall in value against other world currencies, you need to look at gold as being the real currency of the world–and that, my dear friend, will make the producers of gold (quality gold stocks) very valuable.