The golden wave is finally here... And all it took was a little panic in the market.
If you've been reading Health & Wealth Bulletin for a while, you'll know that I've been keeping a close eye on gold. I'm a longtime advocate that everyone should at least own some gold – whether that is physical gold or getting exposure through gold funds.
Specifically, I've been paying close attention to how much investors are buying and selling the precious metal.
Gold has been hated for a long time. I've been writing about how global physically backed gold exchange-traded funds ("ETFs") have seen net outflows for most of last year and this year.
For example, outflows in December were $1.8 billion, $1.6 billion in January, and $1.7 billion in February. In total, we saw net outflows for 10 consecutive months as of the end of February.
But things changed in March, thanks to the panic in the banking sector. Since the failure of Silicon Valley Bank, folks have been worried about their money and whether it is safe in banks. As a result, demand for gold has been increasing.
In March, we finally saw the first net inflow to gold ETFs, totaling $1.9 billion, though the increase was not enough to prevent a net quarterly outflow of $1.5 billion.
April showed some encouraging signs as well... It was another positive month for gold as net inflows tallied $824 million. North American funds led global inflows, adding nearly $1 billion.
This is encouraging for the precious metal...
Gold has been hated for so long that many investors have given up on it. But with the banking scare and the possibility of a recession, folks are starting to warm up to the idea of gold as an investment.
And they should...
Gold has been used as a currency all throughout history. Unlike dollars, you can't print more gold. There's a limited supply.
And even in the era of fiat currencies and rampant money-printing, central banks keep huge gold reserves. Gold is also the ultimate chaos hedge.
When things get rocky in the economy or stock market, folks turn to gold as a safe haven. It has historically held its value across borders, cultures, and political systems... in peacetime and in war.
It makes sense why folks are starting to get back into gold. This fear for the stock market has pushed the price of gold near an all-time high.
But the gains are far from over... People are just starting to buy gold again. I believe there is more upside potential left for the metal as folks continue to pile back into the asset.
Gold-investing legend John Doody agrees with me...
According to John, a perfect storm is creating a new bull market for gold. Tomorrow, John is stepping forward, for the first time in over a year, to kick off the 2023 Gold Rush during the premiere of a huge online event.
When you tune in on May 25, John will lay out exactly how you can seize this incredibly rare opportunity in gold today... the likes of which may never appear again in your lifetime.
Plus, you'll see firsthand the inner workings of the gold system John spent his career building. Once you see how it works, you'll know why this could help you achieve the retirement you've always dreamed of.
What We're Reading...
- Three reasons to buy gold now.
- Something different: The woman who traveled seven hours by camel to give birth.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
May 24, 2023