You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. How to Make Money Selling Dreams, Not Digging DirtThe Wall Street Journal introduces a stupid trend...
Dear Fellow Traveler, Gold hit $4,000, and suddenly, everyone thinks they’re going to strike it rich with a metal detector and a YouTube channel. God, I love this country… and the people in it… The Wall Street Journal just published a piece about amateur prospectors buying “pay dirt” buckets and dreaming of finding the motherlode. Mike Hewlett, a California welder, found a gold nugget worth $175 and was “jumping around like you see in cartoons.” Meanwhile, the Big Thunder Gold Mine in South Dakota is selling out of $55 “pay dirt” buckets, which are up 50% from last year. People are taking these home to pan in their garages with Walmart tubs, hoping to strike it rich. I love this insanity… But remember… in every gold rush, the people who get rich aren’t the ones digging for gold. They’re the ones selling shovels. The Real Gold Rush WinnersLook at what’s actually making money in this story… The Big Thunder Gold Mine isn’t mining gold. They’re selling $55 buckets of dirt to dreamers. Cody Blanchard, a Sacramento sanitation worker, makes more money selling prospecting equipment and tours than he does finding gold (he’s found six ounces personally, but his side business is “more profitable”). Six ounces… SIX OUNCES… Come on man. Chris Spangler has made $30,000 from social media documenting his family’s gold hunting… That’s way more than any gold they’ve actually found. His kids got surrounded by tarantulas in the Mojave Desert, but the YouTube content paid better than the gold flakes. The pattern is clear… The real money is in selling the dream, not living it. Don’t fall for this… Instead… focus on this… The Modern Shovel Play: Franco-Nevada Corporation (FNV)Instead of buying picks and shovels literally, here’s your “shovel” investment for the gold fever era… Franco-Nevada Corporation (FNV) is the ultimate gold royalty company. They don’t dig, they don’t operate mines, they don’t deal with environmental permits, labor strikes, or equipment breakdowns. They just collect checks when gold gets pulled out of the ground. Franco-Nevada owns royalty and streaming agreements on over 400 properties worldwide. Mining companies pay them a percentage of production or sell them gold at below-market prices. It’s like being a landlord, except your tenants are gold mines and they pay rent in actual gold. The royalty business model is beautiful for several reasons:
They’re profitable, debt-free, and have been growing their dividend for over a decade. This is how smart money approaches commodity booms. While amateurs chase dreams with metal detectors and “pay dirt” buckets, Franco-Nevada profits from every ounce of gold their partner mines produce - without any operational headaches. When Mike Hewlett spends his weekend hiking through forests hoping to find another $175 nugget, Franco-Nevada is collecting royalty checks from professional operations pulling millions of dollars worth of gold out of the ground every quarter. Let the mining companies deal with the actual digging, environmental regulations, and operational risks. Let the weekend warriors chase dreams in their spare time. Franco-Nevada just collects a percentage of whatever comes out of the ground. Now… Franco-Nevada isn’t risk-free. The stock has been manic since April. But add it to your watch list or buy shares… and consider a second entry point at the 50-day moving average around $200… Yes… if gold prices collapse, their revenue drops. But come on… all roads point to monetary inflation. Gold is going up over the long term - and my price target is now $4,750 by the end of next summer… Compared to buying actual mining companies (operational risks, debt, environmental liabilities) or physical gold (storage costs, no income), owning a piece of the royalty business seems infinitely more rational. If you are worried, just buy Sprott Physical Gold Trust (PHYS). But you need to take risks… Gold fever creates irrational behavior. People see $4,000 gold and think they’ll get rich digging in their spare time. The reality is Mike Hewlett probably spent more on gas and equipment than his $175 nugget was worth. But human psychology is predictable. When asset prices spike, people chase dreams. And while they’re chasing those dreams, smart investors position themselves to profit from the infrastructure supporting the rush. Franco-Nevada has been profiting from gold rushes - both amateur and professional - for decades. They’ve built a business model that works regardless of whether prices are going up or down, whether it’s weekend warriors with metal detectors or massive industrial operations. Let the amateurs dig for gold in their garages. You’ll be collecting dividends from the royalty company that gets paid every time a professional operation actually finds some. That’s how you invest in a gold rush without getting your hands dirty. Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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