Year to date, the S&P 500 is down 1%.
But gold is actually up 25%.
And in my humble opinion, it’s just getting started…
Gold could easily jump another 50% or more by this time next year. And if we continue along a similar trajectory of Federal Reserve money-printing, it could increase rapidly for years to come.
You see, the “knock on effect” of central banks around the world printing their fiat currencies at record paces is just starting to catch up to them…
The more there is of something, the less each unit is worth…
The less there is of something, the more each unit is worth…
It’s basic supply and demand theory.
And that’s exactly what you’re seeing play out between government-backed fiat currencies (which are unlimited in supply) versus hard assets like gold (that are limited in supply).
That’s why you could buy a house in 1980 for about the average price you can buy a new car today ($38,000).
A lot has changed in 40 years, sure. But two things have remained constant:
- Central banks have printed more and more money, devaluing each unit of account (also known as inflation).
- One ounce of gold can buy the same things as one ounce of gold did 40 years ago.
Not only do I expect these trends to continue for decades to come, I think one ounce of gold will be able to buy significantly more stuff than one ounce of gold can now (known as deflation).
This makes gold a great “store of value” against inflationary fiat currencies printed at will by central banks around the world.
But buying physical gold can be a hassle. Not only is it expensive to store safely, it can be difficult to verify.
Just look at what happened to China earlier this month… They found out 83 tons of what they thought was pure gold (4.2% of their total reserves) was actually gilded copper.
That’s one major reason I like buying gold mining stocks.
Plus, gold mining stocks historically outperform physical gold by 2x.
So without further ado, here’s my favorite gold mining stock to buy now and hold long-term…
Newmont Corp. (NYSE: NEM)
[finviz ticker=NEM]Founded in 1921, Newmont Corporation is one of America’s oldest gold mining companies still operating today.
The company has ownership of gold mines in Colorado, Nevada, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname.
And with a $53 billion market cap, it’s the world’s largest gold producer.
In fiscal 2019, the company produced 6.3 million attributable ounces of gold and 624 million attributable “gold equivalent” ounces from the sale of byproducts. And its all-in sustaining costs (AISC) for the year was $966 per ounce.
On a long-term basis, the company expects to produce 6.2 to 6.7 million ounces of annual gold production while driving AISC down to $800 per $900 per ounce.
And with the price of one gold ounce currently at $1,900, that leaves Newmont with a lot of room for fat margins.
Newmont has approximately 24,000 employees and contractors worldwide, and is the only gold company in the S&P 500.
Speaking of the S&P 500, NEM stock has outperformed the index by a wide margin so far this year.
NEM is up 55%, while the S&P is down 1%.
Since it’s virtually inevitable that we see additional stimulus pumped into financial markets by central banks around the world printing more fiat currencies, I think this trend has a high probability of continuing throughout the rest of 2020 and next year.
Hurry: Tiny $1 gold stock going vertical
By August 31, a critical announcement will reveal the biggest gold mine in America.
Sending the $1 miner that owns it down a path for up to 100-fold gains.
Its real gold windfall has been kept hidden from the public. But that’s about to change for reasons you can see here.
You need to position yourself immediately.
Not only is the announcement coming…
But gold is approaching record prices… and as you’ll see, a well-known billionaire who made $4 billion shorting the housing market in 2008 just went all-in on this tiny gold stock that’s poised to become the biggest in America.
