Not since launching Portfolio Wealth Global in June of 2016 have I been sincerely bullish on precious metals.
Gold is an important commodity. No other metal is suited to be money quite as flawlessly as gold. Many societies have tried and failed to use other systems, but gold has never wavered or disappointed.
It does, however, go through cycles, based on how much yield cash savings are generating and how stable the monetary banking structure seems to be.
Trump's elections, surprisingly, boosted confidence for businesses, and the Federal Reserve's constant teasing regarding rate hikes had calmed investors into believing that things are normal, but the Fed's reluctance to carry out their multiple rate hike policy has now revealed their real outlook for the economy to us all.
This has caused the start to a short squeeze!
In case you're unaware of what this means, it simply suggests that all the institutions naive enough to bet against gold are going to sell their bets while the gold price rises at the same time.
If you've ever wondered what getting hit by a train head-on feels like, call one of these investors today and ask them how their week was.
But I don't want us to just see our gold bullion position worth more, since I don't intend on selling my insurance. Instead, I want us to get maximum leverage from this moment because you never know how long it will last.
That's why I've been in Vancouver, British Columbia, for the past few days meeting with the top echelon of the mining scene—especially the gold rock stars.
Since the start of the year, the five-year Treasury yield has risen about 150%. This would put tremendous pressure on the price of gold, under normal circumstances—higher yields raise the opportunity cost of buying gold—but over this same period, the USD has weakened and is now officially in a bear market.
Because gold is priced in dollars, this has been supportive for prices. Year-to-date, gold is up more than 8%.
But, what is truly playing out like in the textbook is that no one is bullish.
This is precisely when you want to be bullish because of this strategy.
If there are any more rate hikes in 2017, the next one won’t be until December. It should be smooth sailing for gold over the next three to four months!
Gold currently has a net long position of only 37,776 contracts. For gold to be trading over $1,250 per ounce with such a small net long position is extremely bullish. At the very beginning of 2017, gold had a slightly larger net long position of 38,923 contracts, but gold was trading for only $1,137 per ounce.
The bottom line is this: The trend is powerful, and you should be ALL IN!
Tom Beck is the founder of Portfolio Wealth Global. Known as one of the first millennial millionaires in the United States, Beck is a relentless idea machine. After retiring two years ago at age 33, he's officially come out of retirement to head up Portfolio Wealth Global. He brings a vision of setting a new record for millionaires with his seven-year plan to accelerate any subscribers' net worth who will commit to the income lifestyle. Beck delivers new ideas on the marketplace that were once only available to the rich. Traveling the world, he's invested in over a dozen countries, including real estate.
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
Disclosures:
1) Statements and opinions expressed are the opinions of Tom Beck and not of Streetwise Reports or its officers. Tom Beck is wholly responsible for the validity of the statements. Streetwise Reports was not involved in the content preparation. Tom Beck was not paid by Streetwise Reports LLC for this article. Streetwise Reports was not paid by the author to publish or syndicate this article.
2) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
Charts provided by Portfolio Wealth Global
