Back in the summer, legendary investor Warren Buffett shocked Wall Street when his holding company, Berkshire Hathaway, took a 20.9 million-share stake in Canadian gold miner Barrick Gold.
Buffett has been notoriously bearish on gold for years, saying it has no inherent utility as an investment and that it's not a terrific asset.
So you can imagine everyone's surprise when he paid $560 million for the major gold miner.
If this doesn't sound like a huge deal to you, let me tell you that it is.
According to his 2019 annual shareholder letter, Buffett has now made a 2,744,062% aggregate return on his investments since 1965 — which is roughly 138 times more than the S&P 500's total return over the same period.
So it makes sense that when Buffett goes all-in on something … the rest of Wall Street pays attention.
And so should you!
But why did Buffett buy shares of a gold mining stock if he's hated the underlying metal for more than 30 years?
Well, the answer lies in a secret profit cycle I'm about to share with you.
You see, big-time investors like Buffett pay close attention to these profit cycles. They're indicators that investors can use to determine how to allocate their money.
Get into the cycle when it's on an upswing… and you could make an absolute fortune. I'm talking about making seven times… 16 times… and even 48 times your money on a single investment.
These profit cycles are tied to commodities like gold, silver, uranium, oil and other natural resources that move in recurring boom and bust periods year after year, dating all the way back to the 1800s.
Since the year 2000, there have been more than 25 individual profit cycles alone… meaning there's an average of one per year that you could get into.
And every time a new profit cycle comes up, it brings with it the opportunity to make you extremely wealthy.
Outside of a small group of investors — I'm talking Wall Street pros like Buffett — very few people know about these profit cycles and the huge payouts they have to offer.
The reason I'm even telling you about it today is because we're at the doorstep of a brand-new profit cycle — and I think it may be one of the biggest we'll see in our lifetimes.
You see, as I write this, a new profit cycle is forming in the gold market.
Commodities like gold rise when investors all over the world sense there's trouble with paper money, which happens when governments start printing cash out of thin air.
This "fiscal stimulus" is designed to keep governments afloat during times of economic hardship. But the stone-cold reality is that every time more money gets printed, the dollar in YOUR pocket loses its value.
Allow the cycle of money-printing to continue for too long… and entire currencies fall to the brink of collapse.
This is the situation we now find ourselves in.
Take a look around and you'll see that global debt has never been higher. Meanwhile, interest rates have gone to zero in the U.S., and are negative in countries like Switzerland, Denmark and Japan — just to name a few.
Add to that the crushing economic devastation brought on by the coronavirus — which is showing zero signs of slowing down. The government response so far is to pump even more "stimulus" into the economy.
It simply can't continue. Money that isn't backed by something of real value can only keep an economy afloat for so long.
That's why we're staring down the very real possibility of a financial reckoning here in the U.S. — and why the smart money has started to rush into the now-booming gold market, creating a brand-new profit cycle you can take advantage of starting today.
You can see from the chart below that we're still in the very early stages of the next gold bull market: |
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