Special Research Presentation

Why 2023 Is a “Perfect Storm” for Gold

By the Stansberry Research Analyst Team

Throughout history, gold has been the most secure, least volatile, most international, and least political form of money. It continues to offer the same utility today. And it won't take long for gold to climb much, much higher...

Thank you for taking a look at this research presentation. Inside you'll find:

How to recognize the start of a gold bull market
What it will take for gold and gold stocks to take off this year
The easiest way to invest in gold
How to get immediate access to the No. 1 gold stock to own

Billionaires Loading Up on Gold

The financial media likes to label precious metal investors as gloom-and-doomers... goldbugs... and doomsday preppers.

At least until the economy looks dangerous.

That's when gold investors start to hear from friends and family. Questions like:

"Should I be selling stocks and buying gold?"

"How do I buy gold? And... what should I buy?"

"Do you think gold will keep going up?"

Normally this level of interest might give you pause. After all, most folks rarely care about gold. Could the trade be getting overheated? Is this a "sell" signal?

Our bet is no. Not even close.

If you've been investing for long, you've probably heard plenty from gold's detractors. The arguments are always the same... Gold doesn't pay interest or dividends. It just sits there. It's a "barbarous relic," as legendary investor Warren Buffett has put it in the past, that has no place in today's world. As Buffett said in a speech at Harvard in 1998...

Gold gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.

But today, after what feels like nearly a decade of disappointing performance, we believe gold is on the cusp of a major bull market.

In fact, over the past year, gold is already quietly outperforming the S&P500... the Dow... and the tech-heavy Nasdaq.

Some of the world's smartest investors are jumping in, too.

David Einhorn, founder of Greenlight Capital, just added a gold position worth more than $45 million.

Billionaire bond king Jeffrey Gundlach told Yahoo Finance:

"Gold is going to go a lot higher."

Egyptian billionaire Naguib Sawiris says a QUARTER of your portfolio should be in gold as inflation creeps higher...

While legendary hedge-fund manager John Paulson recently bought more than $150 million worth of gold – just this last alone.

But perhaps the most surprising to us was when we saw that real estate billionaire Sam Zell, who spent his career arguing AGAINST gold... is now buying gold as a hedge against inflation.

But it doesn't stop there...

Billionaire hedge fund founder Ray Dalio told readers not long ago he sees a paradigm shift happening in the gold market. He compared today's price movements with historical turning points like:

Gold's historic 2,300% leap in the 1970s from $35 to $850 per ounce after President Nixon took the U.S. off the gold standard...
And in the early 2000s, when gold tripled in value – soaring from under $300 per ounce in 2000 to $1,000 by 2008.

Today, many of the most powerful, well-connected, and smartest investors in the world are loading up on gold in unprecedented ways.

And while there are still plenty of staunch gold skeptics, our guess is that most folks fall into the same category as our friends and family. That is, they understand that gold holds some sort of importance but may not understand why.

That's what we'd like to explain in brief today...

What Gold Really Means

The most important thing to realize about gold is that it's the only real money. By that, we mean it's the only currency that isn't someone else's liability. It stands on its own.

Gold has been used as a medium of exchange for more than 5,000 years. Meanwhile, every single fiat (paper) currency in the history of the world has failed. Governments simply cannot resist printing more and more of it until it becomes so watered down that it's worthless.

But governments can't print gold. That's why they hate it as a form of currency. Gold's value comes from its scarcity. And it takes an intense amount of capital, labor, and time to dig it out of the ground and process it.

Historically, during times of financial crisis or political uncertainty, gold has proven its value as a "safe haven" asset. That's why today – perhaps more than ever – it's critical that your portfolio has some exposure to gold.

The economic fallout from the COVID-19 pandemic and ensuing lockdowns is incalculable. And the Federal Reserve and the U.S. government did everything they could to prop up the markets. That means the printing presses ran hot.

The Fed pumped trillions into the markets, on top of the multitrillion stimulus package from Congress

Of course, none of this money was real. It wasn't earned... It was created.

That doesn't bode well for the value of the dollar. But it will be great for gold. That's why it's more important than ever to place a portion of your investment portfolio in gold... and soon.

How to Buy Gold

There are essentially two ways to invest in gold...

The first is simply buying physical gold. By that, we mean gold bullion and gold coins.

This is the ultimate form of crisis insurance. Gold is a way to store your wealth and preserve your purchasing power. If we do experience a complete economic collapse, gold will still serve as a medium of exchange.

Nobody likes to pay for insurance. We don't ever expect our houses to burn down. But we buy fire insurance just in case... and hope that we'll never need to use it. Physical gold works the same way.

Try to buy a small amount of physical gold (and silver) each year and stow it someplace safe. Then forget about it. Don't watch the price and don't sell it unless you must. You will sleep better at night knowing that you have this financial insurance.

If taking physical ownership isn't a viable option for you, consider buying a gold bullion-backed exchange-traded fund ("ETF"). There are several out there, so make sure you understand exactly what you're buying.

The other primary way to invest in gold is to buy gold stocks. This could be gold miners, precious metals streaming and royalty companies, or various gold-stock ETFs.

During a bull market in precious metals like the one we're in now, gold stocks can rise much higher and faster than the spot price of the metal. As the price of gold rises, the extra revenue goes straight to the company's bottom line. So it gives an investor leverage to the price of gold.

One of our favorite way to own gold stocks is through streaming and royalty companies. These companies have a fantastic business model... You see, mining is an extremely risky business. It requires a ton of capital up front and miners are at the mercy of cyclical price fluctuations. That makes banks leery of lending them money.

That's where streaming and royalty companies come in. They simply lend the miner money in exchange for a portion of future profits. A royalty is simply a small percentage (usually 1% to 3%) of overall sales. A stream is the option to purchase silver and gold produced at the mine for a deep discount from the spot price (as much as 75%). Streams are typical in mines where silver and gold are byproducts of base metal mining.

The best part is, after the initial capital is spent, these companies are done. They just sit back and collect checks for decades. That makes them very low risk. Streaming and royalty companies often perform well, even during bear markets in precious metals. That makes them a great long-term, buy-and-hold hedge for your portfolio.

Buying gold miner stocks takes a little bit more homework. But they can produce incredible gains during a bull market. We separate them into three categories...

1. Major gold producers are the safest mining stocks to buy. These "majors" produce millions of ounces of gold per year. They have large mines all over the world with decades worth of proven gold reserves. Given the size of their assets, they can survive cyclical gold booms and busts.

2. The next tier is intermediate producers. These are miners that might only have a few mines – or sometimes just one. Intermediate producers are riskier than majors, but can generate much better returns if you select the right ones. But it takes research and due diligence. It's also important to understand the political risk these companies are exposed to in the jurisdictions where they operate. It's also important to understand a company's growth strategy and the quality of its management team.

3. Finally, there are junior miners... extremely risky stocks. If you are new to gold investing, you should stay away from these. Junior miners have no revenue. They are either exploring or developing new deposits. Thousands of these small companies trade on Canadian exchanges – which don't share the same level of scrutiny as U.S. exchanges. Most of them trade for pennies and will never come close to opening a mine. The sector is full of speculators and scams. So be cautious.

Don't get us wrong... If you do know what you're doing in the gold sector, these stocks can absolutely soar if you pick the right one. But for us, we need to meet personally with management and ideally visit the projects before we're comfortable recommending them.

So where does gold go from here?

The Real Price of Gold

We rarely make bold predictions on a price target for gold. But we are confident that the price of gold will reach $3,000 over the next 12 to 18 months. And potentially $5,000 or higher from there..

When we look at gold prices across history, we typically use the "nominal" price. That's simply the number of U.S. dollars it would take to purchase an ounce of gold at that specific point in time.

But we also know that the purchasing power of the dollar has been inflated away over time. A dollar today doesn't purchase what a dollar could buy decades ago.

Meanwhile, the purchasing power of gold has remained relatively constant. For example, throughout the last several hundred years, the price of a custom-tailored men's suit could be purchased for about an ounce of gold.

That's why we prefer to look at gold by using the real price. That means using inflation-adjusted dollars (today's dollars) to value gold through history.

So for example, in 1980 the nominal price of gold was $800 per ounce. But in today's inflation-adjusted dollars, the price would be $2,800 per ounce. That means that gold still hasn't hit its all-time high in real terms. It still needs to climb quite a bit.

And it's going to...

Get ready for May 25

Gold has been SURGING in recent weeks amid growing recession concerns and the fast-approaching deadline before the U.S. defaults on its debt.

Which is why, for the first time in over a year, 50-year gold expert John Doody is stepping forward on Thursday, May 25, with an important gold prediction you do not want to miss.

In short: A LOT has happened in the past few weeks in the economy... the stock market… and gold.

But what you’ll hear on May 25 could change EVERYTHING.

Meaning, if you have any money in stocks right now, and are worried you need to move to safety…

If you have idle cash on the sidelines, looking for something to invest in…

Or even if you’re just a gold bug, curious where gold is headed next…

Then you must pay close attention to what John will show you this Thursday, May 25.

Including a dead-simple way to seize this incredibly rare opportunity in gold today... the likes of which may NEVER appear again in your lifetime.

About John Doody

John Doody has an economics degree from Columbia University, an MBA in finance from Boston University, and was an economics professor at Boston’s Bentley University for nearly 2 decades.

His research on gold has been featured in the Wall Street Journal... Fortune … Barron’s… MarketWatch… Forbes… Business Insider… TheStreet.com and CNBC.

John is also the founder of one of the most widely followed gold stock research services for insiders and pros, read by gold mining executives and over 40 professional money managers – at hedge funds, mutual funds, private asset managers, and brokers all around the world.

That’s because John’s gold system has delivered audited gains of 706% since 2000.

Gains which absolutely CRUSH the return of gold… the returns of major gold funds… and more than doubles the S&P.

Again, John will go live with his major gold update on Thursday, May 25 at 10 a.m. Eastern time.

Your private link to the briefing will be sent to you by e-mail as soon as John takes the stage.

Simply keep an eye on your inbox then.

The subject line will be: 2023 Gold Rush Starts NOW!