Editor’s note: If you’ve been reading the Dispatch throughout this crisis, you know our experts see a major bull run ahead for gold. It’s the ultimate disaster insurance. That’s why we recommend holding on to the precious metal – especially during times of uncertainty.
But our colleague, Tom Dyson, took it one step further. He put nearly his entire net worth into gold… and he’s staying out of the mainstream financial system until he knows it’s safe to return.
But he still plans on profiting during this crisis. On Wednesday, Tom held an emergency briefing where he shared his latest market predictions… and how you can set yourself up for 10x gains. If you missed his presentation, don’t delay. You can watch the replay here.
Then, read on to learn what led Tom to make this bold move in gold… and the key indicator he’ll look to before buying stocks again…
By Tom Dyson, editor, Postcards From the Fringe
In the 1840s, Henry David Thoreau lived in a cabin in the woods for two years. He wrote Walden, a famous book about his experience.
In 2018, my ex-wife Kate and I went to live in our own “financial” cabin in the woods.
We sold all our liquid assets, drained our bank accounts, and handed in the keys to our apartments. I sold my car, all my furniture, and converted everything to physical gold and silver.
It wasn’t an investment or a specific speculation to make money. We simply decided we didn’t want to live in the financial system anymore. So we took a financial sabbatical… and decided to go live in the “woods” for a while.
In my eyes, the whole system resembled a giant and completely inappropriate experiment. I was seeing cracks everywhere – sudden air pockets in the stock market… irrational pricing… fragility.
I saw a total rejection of saving in favor of debt. I saw efforts to prop up the markets using unsound money and financial engineering. Things like quantitative easing (QE). And artificially lowered interest rates. And huge government deficits.
The economy seemed almost like it was begging to liquidate itself. And yet the feds kept pushing it up and talking it up.
The most disconcerting part of it all was that no one seemed to care. It felt like we were riding on the Titanic.
Today, as I write to you, Kate and I remain in our financial “cabin in the woods.” And as I study economics and watch the financial news, nothing has changed.
The feds are still “managing” the economy… with more financial engineering, more unsound money, bigger deficits, and more soothing words.
The system still looks to me like the Titanic speeding through an ice field… except it’s traveling even faster now.
So we’re sticking with gold and silver. We’ll stay there, on the sidelines, until it’s safe to return to the financial system. How will we know when it’s safe?
For that, I follow the Dow-to-Gold ratio.
It tracks the Dow Jones stocks as priced in gold. And it tells us the best times to buy gold, and the best times to buy stocks.
You buy stocks when they are cheap relative to gold. That is, when the Dow-to-Gold ratio is below 5, meaning you could buy the Dow with less than five ounces of gold.
You sell stocks when they become expensive – when the Dow-to-Gold ratio rises above 15. At that point, you sit in gold until stocks become cheap again (in gold terms).
It’s our ultimate barometer. So when it falls below 5 again, we’ll know it’s time to trade in our gold and silver and return to stocks.
The ratio is around 14 today.
Editor, Postcards From the Fringe
P.S. Last Wednesday, I held an Emergency Investment Summit where I shared all the details on a million-dollar trade opportunity… and exactly what you need to do to get in. But time is of the essence. And I don’t want you to miss out. Click here now to get all the details.