Why $5000 Gold Could Soon Become A Reality - Seite 2

Gold Mining Stocks offer the best opportunity to multiply your returns over the long run. That's the case because gold mining stocks act as a leveraged play on gold, multiplying gold moves by 1.5x, 2x or even 3x.

When the first round of Amex investors earned over 7000% returns, it was because the company had no exposure and did something the major miners couldn't do: It found a huge gold deposit in the very place that the bigger drillers had failed. 

The biggest risk/reward ratio for investors in junior gold is when they jump in before a major discovery, and before a company has exposure. That's exactly what happened with Amex. But the returns don't stop there: With every stage of proving up and development, the stock gets another boost. In the last 12 months alone, Amex is up over 2000%.

That's why the attention is beginning to focus on the exciting story that is unfolding with Starr Peak (STE; LSGEF) now--in Phase 2.0 of the Quebec gold bonanza. And the timing is perfect: Gold hasn't seen this kind of setup in nearly eight decades. 

Government-ordered lockdowns have decimated economies everywhere, with the global economy experiencing its worst recession since WWII--and the pandemic still rages on. Unprecedented stimulus packages are being pushed through to the tune of $15 trillion globally, which could spark the classic cobra effect culminating in a hyperinflationary economic collapse.

Central Banks are printing money at the fastest clip in history, leading to a plunge in inflation-adjusted bond yields into negative territory and the dollar's sudden collapse. US election concerns with talk of postponement and refusal to accept results are leading to the worst domestic political uncertainty the country has ever seen. And amid this fog of chaos, US-China tensions have reached fever pitch once again over world dominance, espionage and even the pandemic itself. 

It all triggers alarm over stagflation--a deadly combination of sluggish growth and rising inflation that quickly erodes the value of fixed-income investments. That's prompted investors to flee into safe havens like gold, the biggest and best of them all. 

Wall Street is already full-on bullish on the precious metal. 

If gold prices were to go to $3,000, Amex which netted the earliest investors in the neighborhood of 7000%, would have multiplied that massive return even more. And now, Starr Peak (STE; LSGEF) is positioning itself as a mini-Amex in more ways than one. So, this could be a re-run on a smaller scale.