This isn't 2011. Gold is now real money again.
On the surface, every gold bull market looks similar. But this time really is different. Why? Because the underlying drivers of this bull market are not the same as previous ones… Let me explain:
This cycle isn't about a temporary crisis or a short-term policy pivot.
It's about the structure of US debt dynamics.
US debt is expanding and compounding at a pace that cannot continue. For our entire lives, there has always been a way to keep this game going.
In simple terms, US debt is growing so fast, the world is turning away from US Treasuries as a savings instrument.
The world holds trillions of dollars in US Treasuries. And the world can see that the US has no political will to bring its spending under control.
If the US were just another country, the market would simply buy the bonds of whatever country had its act together. But the US dollar is the world's reserve currency.
That means there is no other currency that can take the place of US dollars. So…
The world is turning to gold. That reality changes everything. And the biggest effect you need to pay attention to is that it will change the duration of the gold bull cycle.
Gold is going to run a lot higher for a lot longer than anyone currently expects.
US debt loads are too large – and US political will to bring this situation under control is non-existent.
No interest rate policy that can fix it. If the Fed lowers rates, gold goes higher. If the US prints trillions to pay its debts, gold goes higher. All roads now lead to a higher gold price.
And this doesn't even account for BRICS countries like China, India, Brazil, Russia and others who are busily building a parallel monetary system that bypasses US dollars altogether.
What's coming is a perfect storm for gold – one where every nation wants more gold and everyone benefits from a higher gold price.
Add in central bank accumulation and gold's restored role in bank reserves, and you get a cycle that's driven less by emotion and you get a bull market that could last a decade or more.
Most regular investors are waiting for retail enthusiasm as confirmation that this bull market has legs. Big mistake.
The opportunity today is that you can still front-run gold's next big leg up. Gold isn't going through a cyclical run up – followed by a reversion to lower prices.
Gold is being remonetized and revalued by the very people who run the world's monetary system.
That's why I don't focus on predicting the top in gold. I don't actually care what the ultimate high price will be. I leave those predictions to the amateurs looking for clicks.
I want my readers to understand what's happening behind closed doors. And what's happening is a structural move that will have more impact on your wealth than anything else that's happened in the last 54 years.
That's why I recently sat down to discuss what's coming next for gold with my old friend Porter Stansberry.
In addition to explaining what's happening in the world's monetary system, Porter and I reveal a better way for you to own gold — one that sidesteps the risks associated with mining stocks.
A small portfolio of a certain class of gold companies could have already handed you 35,525% since 2007 – and Porter and I both conclude that this sector could perform even better in the coming decade.
To watch my full interview with Porter, and to find out how you can position your portfolio for generational wealth, go here now.
Best,
Garrett Goggin CFA, CMT
Lead Analyst and Founder, Golden Portfolio
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