| Dear Reader, Have you made the gold stock moves in our Jim Rickards Fat Tail Portfolio yet? If not, you should think about it. The window to buy at such a massive discount may not be open for long. Here, Jim Rickards explains why: ‘From 1971 to 2010, global central banks were net sellers of gold. ‘Then, suddenly, after decades of gold dumping and price suppression by central banks, the tide turned. Beginning in 2010, central banks became net buyers. ‘China has added 1,400 metric tonnes in the past 12 years (that’s the official number, unofficially they probably own far more). Russia has acquired 1,500 metric tonnes over that same period. ‘Other large buyers include Poland, Turkey, Iran, Kazakhstan, Japan, Vietnam, and Mexico. Now, there’s a new gold rush by central banks in the Visegard Group (the Czech Republic, Hungary, Poland, and Slovakia). ‘This is all consistent with efforts by central banks around the world both to increase their gold reserves and to repatriate gold from the Federal Reserve Bank of New York and the Bank of England to depositories in their own countries. ‘What’s curious is that individual investors in the US still seem indifferent to gold as a monetary asset. ‘In theory, central banks are the most knowledgeable about the real condition of the global monetary system. If central banks are buying all the gold they can with hard currency (dollars or euros), it’s not clear what retail investors are waiting for. ‘The irony, of course, is that by the time retail investors wake up to what’s going on in gold, the price will have already soared past US$3,000 per ounce or much higher. ‘That’s if you can even find gold at any price…’ We’ve been working hard with Jim on a gold mining stock strategy to help Australian investors capitalise on what we think is about to happen. You can find it here. God bless, Brian Chu,
Investment Director, Strategic Intelligence Australia | 