By Chris Reilly, managing editor, Casey Daily Dispatch
“The sector as a whole could go 10-1… with some standout companies going 100-1.
Some even more. It’s happened in the past, and I’ve owned several of them.”
Doug Casey was in top form when I met with him recently.
If you know Doug or have read his work, you’ll know that he doesn’t make wild predictions just for the sake of it.
So when Doug tells me that he believes quality stocks in a specific sector are going to gain 100-fold, I listen. And you should, too.
Now, he wasn’t talking about some high-flying tech stock. And he wasn’t talking about the latest crypto play (although Doug sees a bright future in niche areas there, too).
Instead, Doug told me why now’s the time to bet on gold.
Specifically, a corner of the gold market that’s ripe for a rally in the months ahead…
I’ll explain in a minute.
• But first let me tell you why I flew nearly 2,000 miles to go see Doug in the first place…
If you’re new to the Dispatch, Doug is a best-selling author. His seminal book, Crisis Investing, was on the New York Times best-seller list for 34 weeks.
He is also one of the most successful speculators on the planet. In one speculation on a gold exploration company, he made 50 times his money. Another time, he put $1,875 into a small resource company and sold his stake two and a half years later for $1.2 million. There are countless other examples, but you get the point.
When I need to get the latest insight on what’s happening in resources, Doug is the first guy I call. I’ve worked with him for over three years and learned more from him than I could from anyone else. And recently, I had the chance to go see him in person.
The topic up for discussion? The resurgence of gold.
As we’ve been saying all year, gold has sprung back to life. It rallied 20% over the summer – hitting a high of $1,560 per ounce in September. It’s since fallen to $1,459. I wanted to know what’s next for the metal… and how readers could position themselves to profit.
• So I boarded a plane from Palm Beach, Florida to Aspen, Colorado to ask Doug in person…
It was a fantastic trip.
Here’s Doug (left) and me in Aspen.
Doug and I talked about everything from religion to Trump to economics.
But again, the highlight of the trip was the deep dive into gold and gold stocks.
One of the things I wanted to know is what “type” of gold to buy. Should I buy physical gold, large-cap miners, small-caps, explorers, producers, or something else?
There are hundreds, if not thousands, of gold stocks listed around the world. That’s why Doug emphasized the need to get into the right gold stocks.
Because when the demand for gold stocks increases, the “right” gold stocks will go up more than others. According to Doug:
All of the world’s governments are continuing to print up money by the bushel basketful. Not just the U.S., but all over the world. And as this goes on, it’s going to evidence itself in retail inflation.
At the same time, both stocks and the bond markets, which are at all-time highs, could collapse. People will panic out of securities. Where are they going to go?
I think they are going to panic into gold. And gold mining stocks in general, and small explorers and developers in particular, should be huge beneficiaries.
I’m a buyer.
Now, as we say all the time in these pages, when gold moves an inch, gold stocks can move a mile…
• This is because gold stocks are “leveraged” to the price of gold…
When gold rallies or falls, the effect on mining stocks can be extreme.
Just look at how it’s played out over the past 12 months. The gold price has rallied 19%. Meanwhile, junior gold stocks – as measured by the VanEck Vectors Junior Gold Miners ETF (GDXJ), which holds a basket of junior mining stocks – have almost doubled that, soaring 37%.
(By the way, you can buy GDXJ to get exposure to smaller gold stocks, but it’s not the best way. As Doug’s taught me over the years… and as I do with my own trading… it’s much more lucrative to bet on individual gold stocks. And Doug has a unique system for finding these. It’s worked out his entire career, and now you can use it, too. You can learn more here.)
Why have gold and gold stocks moved so much?
There are many catalysts… but one telling sign is how active central banks have been this year.
• They’re buying gold at an eye-opening pace…
In fact, look at what’s happening right now:
The People’s Bank of China has reported higher gold reserves every month since it resumed buying in December 2018.
Last year, the Central Bank of Russia dumped 50% of its dollar reserves… and purchased 8.8 million troy ounces of gold bullion.
According to the World Gold Council, in the first nine months of 2019, central banks have purchased 12% more gold compared to the same timeframe last year.
• But that’s just part of the story…
In short, the single biggest reason gold and gold stocks are on the verge of a historic rally has to do with a critical banking “rule change.”
Doug says this new protocol is presenting a once-in-a-generation opportunity for those who take action now.
If you’re interested in learning more, you can get the facts straight from Doug here. You’ll also get details on five tiny gold stocks to buy. These small names could be the biggest beneficiaries of this new gold rule.
Managing Editor, Casey Daily Dispatch
P.S. If you haven’t been to Aspen, I highly recommend it. It’s absolutely beautiful this time of year – like something out of a postcard. Here are some quick snapshots I took during my visit: