I purchased my first physical gold nearly 2 decades ago. I have bars and American Eagles. I'm sitting on a huge profit.
Last year, I nearly sold it thinking gold was not only taking a backseat, but was being pushed out of favor by investors by the likes of Bitcoin, other cryptocurrencies and the speculation that central banks around the world were about to launch their own CBDCs (central bank digital currencies).
A good friend – an investor peer who I highly respect – talked me out me out it. I'm glad he did.
And here's why...
The 6,000-Year Old Money
Gold's story as a cornerstone of economic wealth and stability is as ancient as civilization itself. For over 6,000 years, this lustrous metal has not only adorned monarchs and embellished sacred temples but has also served as the ultimate symbol of wealth and a medium of exchange.
From the ancient Egyptians to modern financial systems, gold has played a pivotal role in shaping economic practices and policies.
The journey of gold as a universal standard of wealth began in ancient Mesopotamia, where the first transactions using gold as currency were recorded. Civilizations such as the Egyptians, renowned for their immense treasures of gold, used it extensively in trade, jewelry, and as offerings to the gods, underscoring its intrinsic value across cultures and eras.
It was the Lydians, in the 7th century BC, who first introduced gold coins, marking a significant evolution in the use of gold as money.
This is a picture of the Lydian stater – the first pure Gold coin officially issued by a government in world history and was the model for virtually all subsequent coinage. Exceptionally rare prototype issue for the coinage. By the way, you can still buy these coins on official gold bullion sites like AMPEX or even on eBay.
This innovation of the Lydian gold coin facilitated trade, bolstered economies, and laid the groundwork for gold as a naturally elected monetary standard. As empires rose and fell, gold remained a constant, reliable measure of wealth and a medium for international trade.
The gold standard, established in the 19th century, further cemented gold's role in the global economy, linking currencies directly to gold and ensuring a stable, universal value for money. However, this system also limited the flexibility desired by bankers eager to impart a much more elastic "inflationary" monetary policy.
When understanding the dollar, it's important to know that it used to be completely backed by a gold reserve. Following the lead of Great Britain who dropped the gold standard in 1931, America dropped it two years later. This controversial action served its purpose of preventing people from hoarding gold, which was a common currency prior to 1933. However, it also gave the Federal Reserve more power than ever over the value and circulation of the American dollar.
Then just a decade later, the U.S. dollar was anointed the world's primary reserve currency by virtue of the Bretton Woods Agreement in 1944. At Bretton Woods, central bankers from around the world agreed to fix their individual currencies to the dollar. This means that if you were a central bank anywhere in the world and someone wanted to trade in their local currency for a different one, then you could get that currency from your country's central bank.
Now Backed by Faith and Opinion
Then the ultimate act to remove any sense of gold backing came on August 15, 1971, when President Richard Nixon announced the suspension of gold convertibility, severing the direct link between gold and the U.S. dollar. This decision marked the end of the gold standard era and the beginning of the US dollar's worldwide dominance.
Thus, in a period of less than 40 years, an elite banking cartel effectively wiped out 6,000 years of a gold money system and replaced it with a mandated global dollar-based system, which is nothing more than a license to create debt instruments. Every dollar in circulation is debt, backed by the faith one has in the US government, and ultimately its taxpayers, to back up its existence. In contrast with gold which is a debt to no one, the dollar is a debt pledge that went from having the backing of an unelected, naturally selected form of asset backing to a backing completely reliant on faith.
The transition to fiat money, backed not by gold but by government decree, granted central banks unprecedented control over monetary policy. Since departing from the gold standard, the purchasing power of fiat currencies like the U.S. dollar has been significantly eroded. The value of the dollar has been declining steadily since Nixon's act and in fact, has lost about 95% of its purchasing power.
Global debt, fueled by easy monetary policies and the absence of gold-backed currency constraints, has soared, highlighting concerns over financial stability and sustainability. In reflecting on gold's legacy, it's evident that its role transcends mere physical value; it embodies stability, trust, and continuity in an ever-changing world. The end of the gold standard era marked the beginning of an era of unrestrained debt creation, propelled by politicians' ever-expanding appetite to introduce new spending programs. These programs are music to the ears of their banking allies, who stand to gain from the expansion of debt and the ensuing interest income.
Ironically, the issue was never gold itself. The argument against it was primarily its inelasticity as a form of money, attributed to the lengthy and costly process of mine construction and gold extraction, which made it seemingly inefficient in responding to increased demands for money supply. This perspective fueled much of the rationale behind abandoning the gold standard, especially during the Great Depression.
Today, in this era of widespread access to information and robust debate enabled by the internet, people are becoming increasingly knowledgeable about the dollar and the workings of the global monetary system. This enlightenment has sparked a surge in interest in alternative currencies, propelled by a growing disillusionment with the faith-based dollar.
Ironically, throughout the 6,000-year history of gold's prominence, numerous items have been experimented with as monetary substitutes, from beads and seashells to tulips. Similarly, the current trend in digital assets has seen a plethora of experiments, from assets backed by algorithms to avocados.
But at the end of the day, it's still physical gold – whether it's bars, coins or even the proven reserves yet to be dug out of the ground – individuals and investors like you and me… and more importantly governments want a large portion of their portfolio in gold.
And there's no better evidence of that than the continue buying and hoarding of gold by central banks around the world.
According to Bank of America, China, Poland and Singapore led the central bank gold purchases in 2023, with China, the world's 2nd-largest economy leading the pack.
In fact, China's gold inventories reached another record last year. Take a look:
The U.S. leads the world's official bullion holdings, with 69.7% of reserves which is 8,133 tons as of February 2024.
But last year, China purchased more gold than all central banks on the planet, adding 225 tons of gold to its reserves. That was the highest increase since 1977, with total gold reserves reaching 2,235 tons by the end of December last year.
As of February 2024, gold accounts reached 4.3% of China's official foreign exchange reserves from 2.9% in 2019. That's a huge jump.
A big reason behind central banks' gold buying is that central banks don't trust the global financial system. Sound familiar?
And after the EU and US slapped Russia with sanctions, which included freezing its foreign reserves, it made many central banks rethink on the kind of reserve assets they should be holding. You can freeze a central bank's gold assets!
So from central banks to ordinary investors like you and me, gold's continued role as a store of wealth, a safe haven and money remains! And it will remain that way forever!
All of this points to a dramatic rise in gold prices for years to come. And more importantly, it has ignited a massive bull market in junior gold mining stocks. And let me tell you – this gold bull market is just now heating up.
This is a 1-year chart of the VanEck Junior Gold Miners ETF (ETF):
You'll notice the ETF is breaking out after testing support 3-times at around the $31 level. It's now up about 37% in a month!
If gold is in a new gold bull market… and junior mining stocks will experience the biggest gains, then VanEck Junior Gold Miners ETF is headed for some monster gains. This is where the ETF reached during the last gold bull market:
So what's the fuel pushing the yellow metal higher and junior mining stocks higher and higher?
Well the run really gained steamed following the Hamas Attack on Israel, propelling gold prices upwards by 25% over the last few months.
Experts now predict the dawn of a "multi-year bull market in metals," expected to surpass even the remarkable bull market from 2002 to 2011.
During that time, gold skyrocketed from $255 to over $1,900 per ounce.
That's a stunning 600% move in price.
Drawing from this historical precedent, projections suggest gold could potentially climb from its current $2,300 per ounce to an astounding $15,925 per ounce!
While it could go even higher than that, one thing is certain:
There is a LOT of money to be made in a gold bull market.
Right now, you have a rare chance to capitalize on the BIGGEST moment in the gold market in over 300 years.
This once-in-a-lifetime event is poised to trigger an explosive surge in gold prices...
And that's great news for the company my colleague and investment expert Jason Williams recently discovered...
This under-the-radar firm has made a truly historic gold discovery — one that will almost certainly prove to be the last of its kind.
It currently trades for just 22-cents. But that's about to change.
You see, this tiny gold miner's recent drilling results from a five-mile stretch in rural North America have yielded extraordinary results! They were so blockbuster, legendary precious metals investor Eric Sprott hailed it as "one of the greatest gold discoveries in history."
Buying shares of this company now could yield an impressive 57x return on your investment..
Transforming every $10,000 invested into over $500,000!
>> Learn about this opportunity here.
The Prophet of Profit,
Brian Hicks
P.S. With gold prices soaring and experts predicting a multi-year bull market, this is your chance to secure substantial returns. Don't wait until it's too late.
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