Hey There Income Hunters,

 

There has been a lot of discussion lately about how gold is no longer an inflation hedge.

 

But the funny thing is, that was never gold’s intended purpose.

 

That’s important for you to know as we enter a bear market. And if you want to profit in these changing times, you should join Andrew Giovinazzi and I when we go live this Thursday at 8 p.m. EST. We’ll show you what to trade, how to trade it and how to protect your wealth from crazy inflation.

 

Now, about gold’s purpose …

 

Over two centuries ago gold WAS money.

 

In fact, it was actually written into the US Constitution that gold and silver were the only real forms of money.

 

Since physical gold was scarce, banks would play intermediary, take in physical gold and write claims against it.

 

Of course, the banks  figured out that not all gold would be withdrawn at once so they would write massive amounts of claims against a small amount of the precious metal.

 

And that was the start of creating money out of thin air.

 

So, yes printing money out of thin air is inflationary. However, gold doesn’t hedge you against global inflation.

 

Gold is purely an alternative to paper currency. It is also a proven store of value and will protect you when a government (ahem!) is so irresponsible that it has no choice but to create inflation to the point it devalues the currency to nothing.

 

When the Fed is forced to reverse course on tightening because it kills the economy, no one will want to hold dollars or dollar bonds.

 

That is when Gold will soar to new all-time highs.

 

We are nearing that moment and gold is sensing it …

 

Today I’ll show supporting arguments for accumulating gold to not just protect your wealth but come out of the upcoming crisis better off than you went in. 

 

The Bullish Gold Story

 

Sometimes, a sideways move is a great thing within a longer term trend, as it was for gold in 2021. 

 

If you listen to the goldbugs, you might think that the gold price had collapsed by 50 percent or even more.

 

But when you widen your perspective, gold’s performance over the past few months seems like an interim breather, not the beginning of a bear market.

 

This run in gold started in 2018 during a very similar period into which we are heading. 

 

• • • The Fed was pressured by the market to tighten monetary policy and stop a 2.5%  inflation that was barely above their target. 
    • They began tapering, which led to rate hikes and then to quantitative tightening (QT).
    • Eerily similar to today, the stock market held well until the quantitative tightening, which triggered a liquidity crisis in the market as short-term funding dried up and credit spreads blew out.
    • The Fed was forced to reverse policy and go back to printing money.

 

Gold Anticipates Fed Mistakes

 

Notice in the chart below how gold sold off once QT was announced, but smart money anticipated the Fed’s colossal mistake and reversal of policy. Gold rallied 75% and has been in consolidation of the rally through a Fed that insisted about inflation being transitory. 

 

Smart money traders for gold have been inactive for a long time as deflation made the central bank policies simple. A 40-year bond price rally kept interest rates very low.

 

Low rates and low inflation fueled wide profit margins by keeping costs low and debt inexpensive to carry. 

 

Unfortunately that period is over and we are now heading to a period of global inflation … duin the Fed’s debt burden makes it nearly impossible for them to raise rates to fight it. 

 

This will not end well for US stocks and bonds because if the Fed fights inflation by raising rates 5 times in 2021 plus QT they will put the economy into depression.

 

This is when you need to be trading alternative markets that will do well in an inflation. You also need to know how to sell stocks and put on long/short trades that capitalize on diverging economies around the world. 

 

That’s what this Thursday at 8 p.m. is all about.

 

Gold will be in demand for years as investors around the world realize financial assets will suffer as the inflation rate holds above stocks and bond returns causing a loss of wealth.

 

Bring It Home

 

My Power Income Trader system knows how to trade inflation, which can come in 4 different stages, with each one requiring a different approach.

 

On Thursday, Andrew and I are teaming up to offer a unique product that is designed to capitalize on the Fed policy and the ramifications from it in the years ahead. There’s no cost to attend.

 

And here’s one thing I’ll guarantee: You will learn more on Thursday night than you have in a long time

 

Join us when you click here.

 

We are heading into a market environment that needs a very disciplined approach while thinking outside the box so you can not only survive but thrive. 

 

See you on Thursday

 

Until then …

 

Live and Trade With passion My Friend,

 

Griff