Gold Is About to Teach a Lesson for Investors (and It Impacts Your Wallet)
TL;DR (since I don’t like to waste the time of my readers):
Gold will teach all of us during the next few quarters that we cannot print our way into prosperity. There is a generational economic change happening right now, and we should be ready for that.
In 2021, I started investing in gold mining companies. The reason was that inflation got rampant due to excessive money-printing to pay for lockdown compensations.
And as anyone with a basic understanding of macroeconomics (or owners of illegal betting schemes) knows, when you flood the economy with money and credit, chances of an inflationary spiral increase.
Gold is a hedge against currency devaluation, and that is why I started investing in miners (since they are leveraged in the metal price).
Since 2021, I have increased my position in gold miners almost every month. Last year, I wrote what we could expect for the next 12 months, and nearly everything happened as described, except the increase in gold prices.
It turned out that I was too early for the party, and the year 2022 was at best meh for gold. But as someone who enters an empty disco and instead of leaving, enjoys some drinks without catching lines in the bar, I just waited.
Waiting paid off.
Right now, my three gold positions (B2 Gold, Barrick Gold, and Gold Fields) are all showing tremendous returns and have paid notable dividends since then.
By the moment I write this article, my position in Gold Fields (GFI) has an unrealized return of 84.81%, and that is not considering the dividends that they paid me during this time.
In May of 2022, I wrote this guide on how to survive the inflationary cycle, and there I predicted a spike in gold prices.
In this other article, even older, from 2021, I wrote how gold miners (and three other industries) will be the stars of our inflationary cycle.
Both predictions turned out to be correct, and this is what is happening right…