A Tsunami of Capital Is About to Move Into Gold
Graham Summers

As I keep emphasizing, a tectonic shift is taking place in the financial system.

For decades, the dominant theme for portfolio composition was 60/40, meaning investors should allocate 60% of their portfolio to stocks and 40% to bonds. This was literally the gold standard for asset allocation used by Wall Street, financial advisors, and even hedge funds (Ray Dalio’s famed Bridgewater hedge fund was based on this structure).

Not anymore.

For the first time in over half a century, major financial institutions are beginning to advocate allocating capital to precious metals. Mike Wilson the CIO at Morgan Stanley is now advocating for a 60/20/20 allocation: 60% stocks, 20% bonds, and 20% precious metals.

Wilson is not the only one. The Bond King Jeff Gundlach, who literally manages a bond fund, is advocating a 25/25/25/25 portfolio: 25% stocks, 25% bonds, 25% precious metals and 25% cash. Again, this is a man whose job is to manage bonds and he’s advocating for investors to own gold.

This is a tectonic shift.

For decades, precious metals were considered a relic that was un-investable by major financial institutions and investing legends. Warren Buffett famously declared that gold doesn’t do anything but “look at you.” And if you brought up owning gold to your financial advisor they would look at you as if you were a conspiracy theorist.

So, the fact that both major financial firms and investing legends are now advocating for allocating capital to gold signals a seismic change. For the first time in decades, gold is being seen as legitimate investment by the investing establishment. Which means BILLIONS of dollars in capital will start flowing into the sector.

Consider that the entire gold bullion market (the bullion that is bought and sold every year) is only ~$60 billion and the combined market capitalization of every gold mining stock traded in the U.S. is only $600 billion and you begin to see the potential upside here.

So, if you think the bull market in gold is over, you’re very mistaken. For the first time in decades major financial institutions are telling clients to buy gold. And given how small this market is, the bull market in gold could last much longer and go much higher than most investors think.

On that note, we just published a Special Investment Report concerning FIVE secret investments you can use to make inflation pay you as it rips through the financial system in the months ahead. They’re already up 14%, 20%, 23%, 38% and even 41%. And that’s just in the last few weeks!

The report is titled Survive the Inflationary Storm. And it explains my top five gold mining plays, including their names, their symbols, and the resources they own.

Normally I’d charge $499 for this report as a standalone item, but we are making just 100 copies available to the public.

To grab one of the last remaining copies…

CLICK HERE NOW!

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

Graham Summers, MBA is Chief Market Strategist for Phoenix Capital Research, an investment research firm based in the Washington DC-metro area.

Graham’s sterling track record and history of major predictions has made him one of the most sought after investment analysts in the world. He is one of only 20 experts in the world who are on record as predicting the 2008 Crash. Since then he has accurately predicted the EU Meltdown of 2011-2012 (locking in 73 consecutive winners during this period), Gold’s rise to $2,000 per ounce (and subsequent collapse), China’s market crash and more.

His views on business and investing has been featured in RollingStone magazine, The New York Post, CNN Money, Crain’s New York Business, the National Review, Thomson Reuters, the Fox Business, and more. His commentary is regularly featured on ZeroHedge and other online investment outlets.

 

 

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