Rapid change is coming —
There IS a way you could position your money to potentially make
a post-crisis fortune, but you need to act decisively to take advantage…
Hi, I’m Shae Russell.
If you’re anything like me, you’re probably waiting anxiously for the lockdown to be lifted…hoping you can resume your life as normal.
But as any student of history will tell you, there’s no going back from something like this.
In fact, a look at the past suggests that once this is over…the financial world will become even more fragile and unstable.
That’s not because of the virus itself, but because of the extraordinary actions countries around the world — including Australia — have taken to fight it.
To understand just how extreme things are, consider that immediately after the global financial crisis, the Federal Reserve pumped $1.75 trillion into the economy.
Now, it’s putting $1 trillion PER DAY into the ‘repo’ market alone.
Or consider the fact that the Australian government has allocated nearly $200 billion to fight the virus, equivalent to around 10% of Australia’s GDP.
In other words…
The fragility we saw in 2008 hasn’t gone away… In fact, it’s gotten worse.
It’s been papered over with cheap credit…money printing…and boatloads of debt.
And the only way to keep it from collapsing is — you guessed it — MORE OF THE SAME.
Lower interest rates.
More money printing.
More interference in the economy.
It is the only answer the authorities have left.
And it has major consequences for us all.
Put simply, we’re living through the most extreme intervention in the financial markets in history.
And it is going to have consequences.
We will all feel them.
But very few people will truly understand them. In fact, I think most people will be scared and confused about what comes next.
Because here’s the number one most important insight you need to understand at times like this:
Though we’ve never seen intervention on this scale before…
We HAVE seen three distinct times in history when something like this has occurred…
When social and financial panics such as this were met with money printing and interference in the economy…
And they’ve always led to similar outcomes.
Right now, I’m trying to show as many people as possible what that is.
I’m trying to explain this to my family…to my friends…to my colleagues…to anyone who’ll listen.
Because if you understand the lessons of history…there IS something you could potentially do to better position yourself.
Not just to protect yourself, but also to potentially turn events to your advantage.
I believe if you inject a little cash you’re willing to risk into the right moment at the right time…it could be one of the best things you ever do.
My guess is, if you play this right, you could benefit greatly in the years to come.
In some rare cases in the past, we’ve seen gains of between 474% and 900% in a little under two years from the types of stocks we’re looking at.
A warning from history
There have been three times in the past when we’ve seen anything to compare to this.
First, in the Great Depression…
Second, in the chaos of the 1970s following the Vietnam War…
And third, immediately after the banking crisis in 2008.
Each panic varied. But they were all met with a similar response:
A huge intervention in the economy — in the form of stimulus, money printing and large-scale bailouts…
More than that, those interventions forced governments to rewrite the rules of the financial system in order to adjust to the new reality.
All of which ultimately sent the price of gold (and other critical commodities) through the roof.
Just take a look at this chart of gold (inflation adjusted) exploding higher post 1930s…in the 1970s…and after 2008…
Source: Macro Trends
Understanding why that is might just be the single most important thing you can do for yourself, your family and your savings right now.
Because all the signs point to history repeating itself in the coming months…and I’ll elaborate on that in a moment…
Warning from history #1:
The secret history of the Australian pound
The Great Depression began with ‘Black Thursday’ — as the stock market in the US lost 11% of its value at the opening bell.
The selling intensified…and quickly spread around the world.
Soon every economy in the world was staring down the barrel of a brutal economic downturn…followed by mass unemployment…civil unrest…and huge social instability.
Faced with economic Armageddon, the Australian authorities did what governments always do…
They sacrificed their currency.
Back then, we used Australian pounds — which were ‘pegged’ to the British pound, which in turn was tied to gold.
The Great Depression broke that peg.
The Aussie pound left the gold standard…and almost overnight dropped in value by 30% against the British pound.
But the panic didn’t stop there.
And nor did the devaluations…
Soon, foreign institutions were demanding their gold back from British gold vaults.
The outflows of gold — the only truly international currency there is — were like a gunshot wound in Britain’s belly.
To fight the panic, the UK government took action. It took Britain off the gold standard and devalued its currency. As the official order put it:
‘His Majesty’s Government are well aware that the present step is bound to have serious consequences both at home and abroad.
‘But during the last few days the International financial markets have become demoralised and seem bent on liquidating their foreign assets in a spirit of panic.
‘In the circumstances there was no alternative but to protect the economy of this country by the only means at our disposal.’
Do those words sound familiar?
They’re eerily similar to what today’s central banks and governments have been saying about the current COVID-19 panic.
Between 1931 and 1934, virtually every major nation on the planet sought to manipulate the value of its currency down.
Britain began this. The US followed. So did the rest of the world…
In 1931, an ounce of gold would have set you back US$20. After the war, it was $35. In other words, the dollar dropped off a cliff.
The same was true in France…
Source: New World Economics
Source: New World Economics
And even in Chile…
Source: New World Economics
In other words: Governments intervened to fight the crisis…devalued their currencies…a new currency system emerged…and gold soared.
Not only that, certain gold stocks went to the Moon — even as other stocks crashed.
Just take a look at this chart:
Source: Gold Speculator, Southbank Investment Research
It shows what happened in the US markets in the aftermath of the Wall Street Crash of 1929.
The red line tracks the Dow. As you can see, it collapsed in late 1929. But just check out the black line.
It shows what happened to the share price of Homestake, then America’s premier gold miner.
Between 1929 and 1933, shares in Homestake rose 474%. That would have turned a 10,000 pound stake into more than 50,000 pounds (excluding trading costs) — during the worst economic downturn in history.
Not all mining stocks rose like these. But Homestake was not the only mining stock to jump. If you were willing to speculate and put a little capital into certain higher risk gold miners…you could have made tens of thousands of pounds in profit.
This graph compares the performance of the two outstanding gold miners, Homestake and Dome Mines, against regular stocks between 1929 and 1933…
Source: Casey Research
As you can see, the Dow got pummelled by a collapsing credit bubble — losing 73% of its value. Meanwhile, ‘supply kings’ Homestake and Dome Mines rose 474% and 558% respectively.
Now, those stocks were both listed in the US — not Australia. We didn’t even have an official stock market until 1938.
But that’s the beauty of gold. It’s the same everywhere. It’s ‘God’s money’, as they say. An ounce of gold in the US is the same as an ounce of gold right here.
And while there are never any guarantees of a repeat — looking at the data available to us — history indicates that gold prices tend to soar when a crisis strikes.
Warning from history #2:
‘Them was rotten days…’
After the debacle of Vietnam, the US turned to the same tools it had used to fight the Great Depression.
It devalued the dollar against gold. And unleashed a wave of inflation around the world.
Between 1970 and 1981, inflation soared — crushing savers and wiping out billions of dollars in real wealth.
For much of that period, stocks were crushed.
Between 1969 and 1976, the All Ordinaries crashed by 34%.
But what happened to the dollars in your pocket was even worse…
According to the Australian Bureau of Statistics, inflation in the 1970s sent the price of everyday goods soaring a staggering 194%!
What does that do to the real value of your savings?
If you can bear to look, just consider this chart of the true value of a dollar through the 1970s and beyond…
As a Business Insider piece from 2016 put it (emphasis added):
‘The world didn’t end in the 1970s, but double-digit inflation, oil price shocks, a weak dollar, and political instability made investors fearful and nervous. With rising fear and uncertainty investors bought more gold, since it is a tangible store of wealth. As the ’70s drew to a close, people stampeded to own it.
‘It happened once – and it could happen again.’
Between 1970 and 1980, gold prices soared by 1,607%.
It gets better: Here’s a sample of some overseas gold stocks’ performance between the end of 1978 and the peak of the mania in September 1980 (excluding trading costs).
Keep in mind that not all gold stocks performed like these, but you can see a very simple recurring pattern:
A panic. Intervention on a huge scale. Money printing. A new financial system. And a massive gold and gold stocks bull market.
And it happened again in 2008.
Warning from history #3:
Banks crash, gold soars
Here’s what happened to the gold price (in US dollars) post 2008:
And certain gold stocks shot up even quicker.
Not all…but take US gold miner Royal Gold, for instance. It soared four times in the next decade.
And Australian mining stocks got in on the party this time around!
Alkane Resources traded at just 27 cents on 18 June 2010. Yet less than a year later on 21 April, it had gone vertical — up to $2.51. That’s more than 900% in less than a year.
Or take Saracen Minerals. On 19 September 2008, it traded at just nine cents… By 18 November 2011, it had soared more than eightfold.
Now, given what you’ve just seen…consider what is happening in the financial system right now.
- The Federal Reserve has committed to unlimited money printing in a new QE program…and committed $1 trillion every day in emergency ‘repo’ funding…
- Our own government is already pumping an enormous volume of cash into the economy…with $200 billion in new spending and borrowing. (That’s equal to 10% of the entire economy…in one shot.)
- The ECB has launched a mammoth 750 billion euro money-printing program.
- Germany has freed its state bank to lend out an additional $610 billion to ‘cushion’ the impact.
- China has pumped $79 billion of extra stimulus into its economy.
- The US government has created a $2 trillion ‘rescue package’ for Americans…which may involve mailing cheques to everyone in the post.
- The UK government has begun pumping taxpayer money into the economy…with a total of 330 billion pounds committed so far.
All of this has happened within the last month.
Now ask yourself:
Exactly where is all that
money going to come from?
Globally, the bill will probably run to the tens of trillions of dollars.
Anyone who tells you that it won’t have serious consequences is either a liar or a madman.
I believe that the conditions we’re seeing right now are a perfect storm for gold.
I’m not talking about a short-term rally. Or a 10% ‘pop’ higher over a few months.
If I’m right, we could be looking at one of the biggest gold booms OF ALL TIME.
The kind of boom that goes down in history…
Helps early investors who select the right stocks make a fortune…
And could send certain gold investments to the Moon. (Stick with me and I’ll show you precisely what I think they are.)
And you know what?
Gold is ALREADY soaring.
Just not in US dollars.
In Aussie dollars…to all-time highs:
Source: Trading View
In British pounds…all-time highs:
Source: Trading View
In euros…all-time highs:
Source: Trading View
I’m ready to capitalise.
Given what I’ve just shown you…you should be.
In fact, I can’t remember a better time than right now to load up on gold and a handful of specific speculative gold investments.
To capture the biggest gains, history tells us you have to look beyond bullion…and consider swiftly building a portfolio of other gold investments, particularly certain gold miners primed to explode higher…
And that’s not easy. Nor is it risk-free. Gold mining stocks are speculative and can be highly risky. There’s no guarantee that the historical examples will be repeated. You should not speculate on these types of stocks with money you can’t afford to lose.
My research aims to guide you through how best to manage your risk.
Now, I know full well that not everyone can do this kind of specific research. They don’t have the time, the knowledge, the expertise or the confidence, for that matter.
But I do.
And I’ve put it all into a brand-new report called:
5 Gold Investments to Make Now
In it, you’ll find five high-potential gold investment recommendations to get you started.
In my opinion, these five investments will give you a quick and solid foothold in a market that looks like it’s getting ready to take off…
…AND position you to potentially do really well — in the event of a COVID-19 induced major run-up in the gold price.
Download your copy of ‘5 Gold Investments to Make Now’today, and you’ll get the name and ticker symbol of each of these investments — meaning you can buy right away (which I think would be a wise move).
To find out more, and get YOUR copy of this report (plus four special bonuses), just click here right now
Editor, Rock Stock Insider