Buy and Hold During a Bull Market, Make Life-Changing Gains

DRIGGS, IDAHO – Once every 10 years or so, an investor will be confronted with the opportunity to make a huge, life changing score.

I’m not talking about some tiny penny stock going up 10x overnight. While this happens every day, I do not consider these “moon shots” to be realistic opportunities for anyone to chase.

They’re more like dreams… or teasers.

I’m talking about a big primary bull market move that drives an entire asset class higher… over many years.

These are predictable. Investors who can buy and HOLD for the duration of these moves make fortunes.

Some examples of moves like this would be buying stocks in 1942 and holding until 1960, a 505% move… or buying gold in 1970 and holding until 1980, a 1,808% move… or buying bonds in 1981 and holding until 1991, a 224% move.

I believe we’re at one of these moments now. More below…

Modern Nomad Family

Greetings from our Idaho winter hideout…

My family and I are a modern nomad family. We have no home, no possessions (except what we can carry in a suitcase), and no roots in society (like a job or a school for our kids). We just drift around, having fun and learning together.

We’ve been living like this for almost three years… visiting different countries, seeing tourist sites, and meeting local people. We’ve used these experiences to discuss history, art, politics, science, economics, and personal development with our children.

Here in the Teton mountains – where we’re hunkering down for the winter – we’re in one of the coldest, snowiest places in North America. So we’re taking this opportunity to learn how to ski.

Here we are on our first day of skiing (we hit the slopes as soon as the ski hill opened)…

Absurd Bargain

Back to the rare chance to make a life-changing score…

The opportunity I’m referring to today, of course, is the bull market in gold that started in 2003… took a break from 2011 to 2018… and recently resumed its primary trend higher…

Let me restate something I’ve said many times before: These big “primary moves” last a lot longer than anyone expects and take prices far higher than anyone could have imagined.

I believe those who can establish major positions in gold now – and hold them for the duration of the move – will make fortunes.

I emphasize the “holding.”

As the 1920s Wall Street legend Jesse Livermore said in his famous book on speculation, “It was never my thinking that made the big money for me. It was always my sitting.”

The U.S. and other rich countries are entering a sovereign debt crisis. And over the next 10 years, they’re going to dilute the value of their currencies so they can shoulder the burden of their unbearable debts.

World debt is currently over $255 trillion.

It’s not a stretch to imagine that $100 trillion of this debt will need to be taken onto central bank balance sheets and exchanged for paper money receipts. (Central banks have already taken in over $20 trillion in debt since 2008. This trend is just beginning.)

We’ve called this dynamic a “synchronized global currency devaluation.”

Meanwhile, the value of all the gold in the world is only about $11 trillion. For this reason alone, I see a gold price of $10,000 as just the next stop on the way to much higher prices.

In a few years, we’ll look back on today, and we’ll consider paying $2,000 for an ounce of gold as an absurd bargain.

But there’s one more reason why I think we’ll see a much higher gold price in the near future…

“Inflate or Die” Is Going 100% Digital

We are fast approaching a time when we will each have our own “digital” wallets online.

We will hold our savings in these wallets. And we will be able to make payments to others from these wallets. In effect, we will all become our own banks.

It appears the Federal Reserve and other central banks want to administer these systems… probably by launching some sort of wallet app for our mobile phones and using their balance sheets to capitalize the platform.

Why would the Fed want to take our account balances away from the banking industry and bring them onto its own balance sheet?

The answer, I believe, is for inflation. As we’ve said many times, the Fed must inflate or die. But it’s struggling to create inflation at the moment because it’s already fired all its bullets.

Interest rates are at zero. And the Fed has already promised to keep them there indefinitely. It can’t make banks lend new money supply into existence. And it can’t force Congress to keep printing and spending.

A digital cash system removes all the obstacles that prevent the Fed from inflating the money supply.

This must be the real reason the digital cash movement is happening now. Once it’s set up, expect the Fed to use it to give away free money…

– Tom Dyson

P.S. America is at a tipping point from which it may never recover. Saving your retirement and your family is the single best thing you can do right now. How? I explain it all in this urgent video presentation.

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

In today’s mailbag, a word of caution for gold bulls… one reader admits he thought Tom was “a bit loony at first”… and another offers homeschooling book suggestions…

Reader comment: Be careful about what you wish for. Gaddafi tried to create a gold-backed currency in Libya and look what happened to him. Knives of gold. “Gaddafi is cruelly bold and must be deposed,” we were told. But they just couldn’t swallow his threat to the dollar: a currency backed by pure gold.

Reader comment: I thought you a bit loony at first, a social dropout traveling around the world on the cheap with a wife who hadn’t yet given up on you. I think you can handle this honesty. But I’ve grown to appreciate you. My late wife was Chinese, and our daughter looked like a version of Penny when she was 10.

Now, down to business. Your views on gold, bitcoin, and commodities mirror my own, but I’m sure you can teach me more.

By the way, I’ve already made a small fortune on gold. I bought big in December 2015, when most of the miners seemed priced for bankruptcy. Over the next three months, 9 of my 10 mining stock positions ran up over 100%. That got my attention. Ever since, I’ve been buying on dips, taking profits when prudent, and tracking and studying every miner out there. Matter of fact, I bought more shares this morning.

Real estate is a special kind of commodity. Do you cover it? As you’ve no doubt noticed, we are having a boom in semi-rural real estate, as COVID-19-traumatized people try to get away from densely populated cities. I’m in escrow on another house not far from Palm Springs. I intend to operate out of it as I plough my precious metal stock profits into acquiring more real estate in the greater Palm Springs area.

Sadly, printing trillions out of thin air is not going to create good jobs or help average folks have a better life. It’s going to help people with assets have bigger assets and more wealth.

Reader comment: Thanks for sharing your insights and adventures from the fringe. I just wanted to share the book The Education of Little Tree by Asa Earl Carter with your homeschoolers. I loved the book much better than the movie that came out several years later. Enjoy all the fresh powder snow this winter.

Tom’s note: Thanks for the suggestion! And, as always, please keep your questions and comments coming at [email protected]. We read every note you send us.