Greed Is Bad; Gold Is Good
David Forest, editor of “The Strategic Investor,” believes we are in the early stages of a “historic gold bull market.”
Main Reason: Fed Money Printing – “Since the market crash in March, the Federal Reserve has pumped out $3 trillion in new money supply. And there’s more coming.”
Eventually, there will be a crash, Forest says. And when that happens, people typically move to gold. But, he says, don’t expect gold to shoot up immediately.
“During [financial] crises, people sell everything. That includes physical gold. We saw that back in March, when the gold price dropped 12% in nine days – even as the gold supply dropped as mines halted production due to the coronavirus restrictions….
“In 2008, the Dow lost 53%. Gold bullion dropped from $1000 per ounce to $700.
But although it took the Dow four years to recoup its losses, gold quickly rebounded. By September 2009, it was back to $1000. It then soared to a record $1927.70 in 2011….
“Many people don’t realize, but the troubled 1930s were the same. Gold mining was one of the few industries that prospered.”
So Forest recommends stocking up on physical gold and, if you like to speculate, taking a position in a gold mining stock, since gold mining stocks often accelerate exponentially when gold prices rise.
But whatever you do, don’t panic if in the initial few days or weeks of the crash, gold prices drop. If history repeats, they’ll come back again and stronger.