An Inside Look at an Old Colorado Gold Mine

RIDGWAY, COLORADO – World gold production is forecasted to fall by nearly 50% over the next decade…

This chart from Barrick Gold – the world’s largest gold mining company – shows total world gold production over the last 10 years (through 2019), and what it’s estimated to be over the next 10 years (through 2029)…

More below. But first…

Epic Homeschool Field Trip

Greetings from Ridgway, Colorado…

Two years ago, my family and I left our home in Delray Beach, Florida and embarked on the world’s most epic homeschool field trip.

We’ve seen the Great Pyramids, the Great Wall of China and the Great Lakes. We’ve ridden camels in the Sahara and Gobi deserts. We’ve seen the Grand Canyon, Taj Mahal, and the Suez Canal…

[Editor’s Note: If you’re a paid-up Tom’s Portfolio subscriber, you can relive the Dysons’ global adventures with Postcards From the Fringe: The Book. It’s 261 pages filled with photos and many never-before-published postcards. If you’re not subscribed yet, find out how to get the book for free with a Tom’s Portfolio subscription, right here.]

We’re still not done.

We’re currently in America, driving around by car…

Insider’s Tour of the Mining Industry

Last night we camped at Molas Peak campground – at an altitude of 10,900 feet – on the road between Silverton and Durango.

It was so cold, the five of us huddled up together into two beds and slept like sardines in a pile of sleeping bags and blankets.

This morning, we packed up camp and went to meet Janet and Harry, our hosts for the day, in the mountain town of Silverton.

Janet is a Silverton local and once worked in the gold mines around Silverton. Knowing how much we love gold, silver, and commodities, Janet took us on an insider’s tour of the mining industry…

(They don’t mine in Silverton anymore. But between 1860 and 1991, Silverton mines produced 2 million ounces of gold, 51 million ounces of silver, 112 million pounds of copper, 760 million pounds of lead, and 600 million pounds of zinc.)

First, we visited the mining camp at Animas Forks, 11,200 feet above sea level.

Thousands once lived there, but it has long since been abandoned. (It once had its own railroad service and a local newspaper.)

Here we are…

Then Janet took us into the Old Hundred Gold Mine.

We rode a mining train one-third of a mile into the mountain until we found the gold vein. Then we watched (and even got to use) real excavation equipment.

Here we are…

Next, we went to the mill, where they once crushed the ore and separated the metals from the rock.

And here we are at the historical museum in Silverton, where they locked us up in jail…

Finally, we drove the “million dollar” highway – one of the most scenic roadways in the world – from Silverton to Ridgway, where Janet and Harry invited us to crash at their home for the night.

My Biggest Takeaway… And Why It Means
Higher Gold Prices Ahead

The biggest takeaway of the day for me was how DIFFICULT it is to produce gold.

It’s hard to find and access, hard to extract from the ground, and hard to separate it from rock and other minerals.

That’s where the chart I showed you up top comes in…

I expect the demand for gold is going to soar over the next 10 years, as the world loses faith in floating paper currencies.

It’s clear – both from the chart above and our experience in Silverton today – that the supply of gold will NOT be matching the increase in demand for gold.

Therefore, I believe much higher prices lie ahead.

– Tom Dyson

P.S. Back in May, I developed an entire trade to take advantage of this opportunity in gold. I even invested $1 million of my own money into the same strategy. Since then, my recommendations are up as much as 89%, 114%, even 172%. And as I explain in this special video briefing, this trend is just getting started…

P.P.S. Tomorrow we say goodbye to Janet and Harry and head west, bound for Moab, Utah…

Like what you’re reading? Send your thoughts to [email protected].

One reader gives their take on what a “dollar” really is…

Reader comment: Tom, I’d like to have the opportunity to remind the dear readers of your great Postcards about the term “dollar.” I continue to get the feeling that people misunderstand the term. A dollar is a term of measurement similar to “quart” or “ounce.” You must ask, “A quart of what?” when you use that term.

So, my point is to remind people that we don’t have “a dollar,” whether printed or electronic. Instead, we actually (and lawfully) transact in dollars OF something – and that something is silver. Specifically, the “dollar” is a coin containing 371.25 grains (troy) of fine silver. “A dollar” is a measurement of something with value, not a thing in itself. Sidebar: Federal Reserve Notes are not dollars.

Anyway, thanks for sharing this with your readers, and keep up the great work!

Reader question: When it is time to sell my gold and gold stocks and I get paid with funny money (not worth much) or digital currency (also not worth much), then what? I am still holding cash not worth 50 cents on the dollar. What happens if the government tries to confiscate my gold? Do I need to put it offshore? If it is sitting offshore and I can’t bring it back to the U.S., what good is it, unless I move out of the country?

Others have questions about Tom’s Dow-to-Gold investment strategy and precious metals prices… and Tom has answers…

Tom’s response: I don’t intend to trade my gold for dollars. When the time comes, I will trade my gold for stocks. Specifically, I will buy dividend aristocrats, the best long-term passive investments in the stock market. I’m not worried about the government confiscating gold. I know it’s a possibility, but I see it as very unlikely.

Reader comment: Thanks for the great Postcards! A question from a reader. Do you ever use an S&P 500-to-Gold ratio, and would it give a similar result to the Dow-to-Gold ratio? I guess you use the Dow because there is a longer historical database, but perhaps the S&P 500 is now more representative of stocks that people buy? Best wishes to you and your family on your travels.

Tom’s response: The S&P 500-to-Gold ratio is very similar to the Dow-to-Gold ratio. The difference isn’t enough to make any difference to the analysis. I just like the Dow better. If I were to use a different measure for stocks, I’d use the Vanguard Total World Stock ETF (VT) or the Wilshire 5000, which is the broadest measure of U.S. stocks.

Reader question: Hi Tom, I have enjoyed letters, as well as your perspectives on the financial future of the dollar. It is also fun to read about your family adventures. Those are adventures that most will never experience in a lifetime.

As you predicted, the price of gold is rising dramatically. What surprises me is that the price of gold stocks is not directly mirroring this rise. How do you interpret this lack of coordination?

Tom’s response: There’s a “trickle down” phenomenon at work. The gold bullion price tends to move first. Then the top gold stocks follow second. Then silver starts moving. And finally, the junior gold and silver companies move last (and by the most).

Reader comment: G’Day, Tom and family. What a great story your life book will read. I am 52 years old and a first-time gold investor. I have seen the significant rise in price from the sidelines but now have the belief in gold. Should I wait for a small price correction – as predicted by Andy Krieger – or get in now? Thanks for sharing your story.

Tom’s response: Why not use a “drip” strategy?

Reader question: I don’t dispute your theses in the least. My question is: Are you certain that stocks will grow in value when the ratio hits 5? It would seem to me that if the ratio hits 5, the market will have suffered from the money-printing fiasco to some degree. What sectors would make sense at that point?

I envision a lot of economic carnage, so presumably there should be some sectors that never (short- to medium-term) recover. As an over-weighted holder of gold, silver, and miners, I’m trying to envision what sector(s) I would roll my winnings over to. Your kids are getting the education of a lifetime.

Tom’s response: Good question. One must always be planning the exit strategy… or, at least, the next trade. I plan to begin selling our gold when the Dow-to-Gold ratio hits 5.

At that point, I want to buy the best, most reliable companies in the world… things like Disney, Coca-Cola, and Home Depot, to name three. These companies have been making profits for years, and they raise their dividends each year.

My hope is, at a Dow-to-Gold ratio of 5, these stocks will be cheap.

Finally, kind words for the Dyson family… and a travel recommendation from a longtime precious metals investor…

Reader comment: Tom, love your Postcards from the Fringe and wish that we could accompany you all. Fantastic!

Reader comment: Dear Tom and family, such incredible trips and adventures! Don’t believe that in my almost 83 years, I’ve ever heard of anything quite like what you, Kate, and your children are doing. We all hope that you stay safe and find a great place to winter.

By the way, since gold and silver are doing so well now, why don’t you buy a nice RV or camper (such as the one in the August 4 Postcard) so that you all would be much more comfortable, and even safer? You have more than proved what incredible campers and outdoors folks you are! 🙂

I have been a long-time investor in the metals and their stocks. I knew that, sooner or later, our bankrupt government would drive the dollar into the doldrums and gold and silver would move much, much higher. The sewer dwellers in Washington have now got the “tiger by the tail,” and our patience is finally rewarding us.

Sorry I don’t live out in the west and cannot offer you all a place to visit and rest, but a million thanks for your wonderful Postcards.

Tom’s response: Thanks for the kind messages! As always, please keep writing us at [email protected].

And to answer the question, our gold is our retirement plan. We don’t want to sell it (or the stocks we’re going to trade it for) until we need it later in life.

Anyway, we love our little tent trailer. It’s perfect for us.