The Case for $3,000 Gold

And how to trade the next move higher [The Rude Awakening] April 10, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The Case for $3,000 Gold - Zach Scheidt writes today’s glittering Rude. - We’ve liked gold for a while now; Zach shows you one way he trades gold. - Owning gold is great. Trading gold using this strategy costs less and has a bigger upside. [Send Me Your Mailing Address!]( [Click here to learn more]( The biggest gold bull market in history has just begun. That’s why New York Times best-selling author Jim Rickards has arranged to send his must-read book on gold to any U.S. citizen with a valid mailing address today. [Click here now to see how to claim your copy of The New Case For Gold](. [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Monday! I hope you and yours had a wonderful Easter weekend. Pam, Micah, and I are driving back up to Piedmont from Tuscany now. So my friend and colleague Zach Scheidt is taking over the Rude today. And what a glittering job he does! Zach lets you in on a strategy he uses to increase his family’s wealth by trading gold - not merely owning it. I fully approve of this method as a short-term trading strategy to supplement your physical or long-term holdings. And remember, it costs less and has bigger upside. If this piece whets your appetite, Zach will have more coming. As St. Augustine once said, “Tolle Lege!” Take up and read! And I’ll see you tomorrow. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [GONE: your shot at 102% gains in 6 days…]( Hate to say, “I told you so”… But we’ve sent you a countless number of emails trying to draw your attention to this unprecedented [wealth-building opportunity.]( And according to our file, you still didn’t take action. And that’s a shame. Because you just missed your shot at a 102% gain in 6 days – in the middle of a market selloff. That’s the bad news. The good news? We’re issuing a brand-new buy alert right now with money-doubling potential. [And you can go here now to get in position to receive it before you miss out again.]( [Click Here To Learn More]( [Zach Scheidt] ZACH SCHEIDT Hi Reader, The past few weeks have certainly been full of twists and turns in the financial markets… As you may already know, Credit Suisse was recently bought out (or more accurately rescued) by rival UBS Group, continuing the chaos of the banking crisis. The merger is eerily similar to how Bear Stearns was taken over by J.P.Morgan, or how Merrill Lynch was merged with Bank of America during the financial crisis of 2007-2008. And in March, the Fed announced another round of interest rate hikes, this time by a quarter point, sending the markets into freefall. In the weeks leading up to the Fed announcement, it felt practically guaranteed that it would raise rates again. But it became much less certain in the aftermath of the banking crisis. As you may have noticed, the stock market can swing wildly in one direction or another as soon as a major headline changes investor sentiment. But right now, I’ve got my eye on one area of the market that’s been moving in just one direction... up! Given what I see on the horizon, this could be just the start of a much bigger surge. So today, I want to take the time to explain what’s happening and share an aggressive way you can profit from this next move higher. Gold Is Still on Track to Hit $3,000 an Ounce In the January 2023 issue of my dividend newsletter Lifetime Income Report, I predicted that gold would hit $3,000 an ounce by the end of the year. While 2023 has certainly been off to an unpredictable start, I still feel confident about my gold price forecast. Allow me to explain… As I mentioned, the Federal Reserve raised interest rates again last month. But after March’s meeting, it looks like the Fed will start to pump the breaks on rate hikes going forward. The Federal Open Market Committee indicated that there might only be one more rate hike this year. If that’s true, it would mean three rate hikes in total this year compared to last year’s seven. And several investors expect the Fed will even be forced to cut rates — possibly several times — by the end of the year. It's hard to know exactly what the Fed will do. If Powell raises rates again, he risks pushing a fragile economy into a recession, especially in what has become a vulnerable banking system. But if the Fed keeps interest rates steady or cuts rates too soon, we risk inflation rearing its ugly head. Given the billions of dollars promised to banks, extra liquidity in the system could make the situation even more dangerous than usual. The price of gold has been surging based on new expectations that we’re nearing the end of this rate hike cycle. And it could be a perfect catalyst for gold to hit $3,000 an ounce (or even higher). [pub] Low interest rates tend to pressure the value of the U.S. dollar. Basically, when international investors get less of a return on dollars, they're likely to pull their money and invest it elsewhere. All of that capital moving out of the dollar will naturally act as a tailwind for gold. Meanwhile, if inflation comes back like when the Fed stopped hiking rates in the 1970s, investors would scramble to protect the value of their wealth. And gold is the best way to do this. Bottom line: I expect gold to continue its sharp rise this year. So I want to make sure you're in position to profit. Owning Gold Versus Trading Gold I always recommend owning some gold as part of any well-diversified portfolio. Gold is a great long-term investment to help protect the value of your savings over time. But I also recommend trading gold (or buying gold for a shorter period of time) during certain economic seasons. And this happens to be one of them! When the banking crisis began,I wrote in my free newsletter Rich Retirement Letter that [precious metals would surge](. And that's exactly what’s happened! Gold should continueto rally throughout the year, but it’ll almost certainly be a bumpy ride with plenty of ups and downs. That's because as new information comes out, traders will continue to adjust their positions to try to get ahead of the changes in our economy. So don't expect a straight line higher. You’ll want to add to your gold position on any pullback. And you might also consider taking some profits off the table when we get a surge like the one we had last week. For my family's money, I've been buying in-the-money call option contracts on the SPDR Gold Trust (GLD). I like this approach because call option contracts let me book larger profits while committing less capital. And when GLD trades higher, I can sell the call contracts I have for a profit and use a portion of that profit to buy new contracts with a higher strike price. This is a great way to lock in profits while still keeping my position in play. If you want to know more about this aggressive strategy, stay tuned! I’m working on a project behind the scenes with my team. Once we’re done putting on the finishing touches, I’ll have some exciting news to share with you. Regards, [Zach Scheidt] Zach Scheidt In Case You Missed It… Key to China’s Power: An Army of Geologists [Byron King] BYRON KING It’s Good Friday and Sean Ring is taking time off with his family. He asked if I’d cover for him and I’m happy to do so. First of all, greetings to everyone. Across the world, most markets are closed for Easter. Plus, it’s Passover for Jews and mid-Ramadan in Islam, which means that many people have throttled back for a few days. We can defer market commentary to next week, and then get back to figuring out which big bank will fail next, if not opine on President Trump and his legal travails in the Banana Republic of Manhattan. Today, let’s think on the big side and discuss China, and her fast-growing national power. That’s worth some time, right? (Hint: yes.) I’ll tell you a story that explains how at least some of that power came about, with reference to China’s deep and very serious educational system. And I hope you come away with improved understanding of the unfolding future. A Convention of Really Smart People My tale begins 16 years ago, in April 2007 when I attended a convention of really smart people, namely an energy conference in Long Beach, Cal. There, I made an eye-opening discovery – to me at least – about China. And it remains pertinent, especially considering what has happened in the intervening time. Back then I wrote about what I learned, in one of my old newsletters called Whiskey & Gunpowder, if you’ve been around for a while. I discussed what I called China’s “armies of geologists.” And here are some of the key points. The Long Beach event was the annual convention of a professional group called the American Association of Petroleum Geologists (AAPG), of which I’ve been a member since 1977. (Yep, I’m that old.) Attendance was about 6,000, mostly oil- and gas-focused geologists from around the world, and others who work in related fields that range from service companies to government and academe. One thing that struck me about the assembled throng was how collectively well-educated the whole group was. Many members of AAPG hold one or more master’s degrees in scientific and technical fields. The numbers of Ph.D.s, combined with the broad spectrum of research fields, was entirely impressive if things like that impress you. So, the Long Beach Convention Center overflowed with smart people, dripping with ample amounts of academic wax and ribbons. Which brings me to the next part of the story. Meet Mr. Wang, Marine Geologist The AAPG event offered several field trips, and I signed up for one to visit historic oil sites in the Long Beach environs. Because yes, despite California’s current opposition to fossil fuels, the Long Beach-Los Angeles region is serious oil patch going back over a century, with deep petroleum legacy and plenty of geology on display if you know where to look. The trip involved travel to different locales in a bus, which is how I came to be sitting in a seat when a guy walked up and asked if the adjacent seat was taken. I said no, he sat down, and we introduced ourselves. The gentleman was Mr. Wang, a professor of marine geology from what he called the “University of Geoscience” in Wuhan, China. (Yes, that Wuhan.) We began talking about geology, shop talk basically. And quickly, I figured out that this fellow had an excellent grasp of his field. I asked Mr. Wang about his university in Wuhan. Among other questions, how many students attend the Wuhan University of Geoscience? “Oh, about 20,000,” he replied. I was stunned. “You have 20,000 students majoring in geology?” I replied. He paused for second, and then smiled. “Sorry, no,” he replied. “I didn’t mean to mis-speak. Many students study other fields besides geology, such as physics, chemistry, biology.” So I asked again, “Well, how many people do you have studying geology?” “Hmmm…,” said Mr. Wang. “About 10,000.” Again, I was stunned. They have 10,000 students studying geology? And a similar number in physics, chemistry and biology? Holy Smokes! I did some quick math in my head. My immediate sense was that if you took the top 500 colleges and universities in the U.S. and added up all the geology or earth science majors, you would still not reach 10,000. But here was one university in China with a clearly massive program. Curious, I wanted to know more. “So, 10,000 geology students? In what aspects do these people pursue their studies?” Mr. Wang thought for another few seconds and replied, “We teach necessary scientific background such as math, chemistry, and physics. Then we teach geological concepts like stratigraphy and mineralogy and structural geology. We move students into specific fields such as oil and gas geology, petroleum engineering, mineralogy, mining geology and engineering, civil engineering, geological engineering, marine geology, geochemistry, geophysics, and other fields that branch out from those subjects.” “Do your students have jobs when they finish their studies?” I asked. “Absolutely,” replied Mr. Wang. “Our students graduate, and many go on to obtain advanced degrees in China, as well as in Australia, Europe, and the U.S. We also send many students into the oil and gas industry, mining industry, and engineering fields. We have graduates working at geological projects everywhere; all across China, and as far away as Arabia, Africa, South America, and even performing research in Antarctica.” Impressed, I queried Mr. Wang some more: “Since you have 10,000 students, is your school the main school for the study of geology in China?” “No,” he replied. “Ours is one of three geoscience universities in China. Two other universities are comparable to ours. And many other universities have their own college of geology. Beijing University, for example, is a very great school that is attended by many of the best students in China. It has a college of geology with about 4,000 students.” I followed-up: “Can you give me some idea of how many students study geology in China today?” Mr. Wang thought for a moment. “If you add them together,” he said, “about 40,000 or 50,000 study geology at the university level. Maybe more, but I don’t want to give a number that’s too high.” After a pause, Mr. Wang added: “Importance of geology begins at the top. The Premier of China, Wei Jiabao (China’s premier at that time, in 2007; BWK), is a geologist, by the way. He worked as a geological surveyor in his youth.” [Patent #11,219,620: The Most Valuable Patent In History?]( I believe this could over time become the single most valuable patent in history. [That’s because this patent is just some of the exciting work being done by a company which is developing treatments for one of the biggest and most common diseases in America…]( A disease which impacts 54 million people, or about 26% of the adult population in America. Whatever you do, do not let this opportunity pass you by. [Click here now for the details.]( [Click Here To Learn More]( Are You Impressed Yet? Okay, think about that. In 2007 the then-premier of China was a geologist, and about 50,000 students studied geology. That was 16 years ago. Now, let’s say that China has graduated 10,000 geologists per year. Multiply times 16 equals 160,000 geologists, and I’m being conservative. Per my research in 2007, that 50,000 number in China was over 20 times the number of college students studying geology in the U.S., which included significant numbers of foreign students enrolled at U.S. institutions. Meanwhile in 2007, according to the National Science Foundation (NSF), U.S. universities granted fewer than 500 advanced degrees in geology, and that number included related degrees in petroleum engineering. About half of those degrees were awarded to foreign nationals. So, the raw numbers were that China had 100 times that U.S. number in the geology pipeline. Recently, I tried to update the U.S. numbers. Sad to say, NSF data cuts off after 2012. Still, those U.S. government numbers list about 1,600 master’s degrees and just under 700 Ph.Ds. in 2012, but the data lump together the field of geology with atmospheric and ocean sciences, which means that we don’t really know how many new, true geologists are coming down the line. Still, it’s not out of line to make a comparison. In military terms, the U.S. trains geologists by, at best, the platoon- or company-size. The Chinese crank out geologists by the division, if not by the scale of an army. Indeed, China’s collective army of geologists is comparable in size to the U.S. Marine Corps. Why Is This Important? For many decades – let’s use the 1960s as the start – earth science has undergone continuing evolution if not revolution. That is, geology has many sturdy old, traditional elements like sediments, paleontology, hard rock (igneous/metamorphic), structural, mineralogy and such. Then in the 1960s-70s came the intellectual leap of viewing the earth as a dynamic system, in which processes deep in the mantle and even core drive surface events. Think in terms of plate tectonics, midocean ridges, or vast mountain and volcanic ranges like the globe-circling, Pacific Ocean rimlands called the “Ring of Fire.” Plus, take these earthly developments into outer space and apply them to planetary science. People write volumes describing scientific upheaval based on stunning advances in earth and beyond due to improved data gathering, storage, analysis and signal processing. In general, geology is about understanding earth as a system, or more accurately as a system of systems. While anymore the field incorporates entirely new realms, such as interactions between the atmosphere, hydrosphere, biosphere, cryosphere, solid earth, and near space. All this, and geoscientists play critical roles in recognizing the extent and magnitude of human impact on the entire earth system. It’s no stretch to say that this immense new scope of earth study has been enhanced via the growth in knowledge of processes on other planets. The bottom line is that advanced nations require significant numbers of people who understand at least the basics of geology, let alone the hard stuff. The more, the better some might say; and certainly, it’s going to be better for the nation that trains up armies of geoscientists. Consider energy resources like oil and gas, or indispensable industrial elements like iron, aluminum, copper, nickel and many more. Everything from your iPhone to your car to your microwave oven is made out of metals or other materials. Somewhere and somehow, some geologist had to find the ores and minerals whence all else comes. It’s also no stretch to say that the future of modernity depends on how well people can locate and develop necessary resources. In other words, societies that want to remain on top in the future had better graduate more than a few geology majors from the academic sweatshops; the more the better. In 2007 I wrote: “We live in a world in which the Chinese are training the scientific and technical cadre that will go out into the world and, one way or the other, find what their country needs and bring it home. There are armies, and then there are armies of geologists.” Looking back over 16 years, Mr. Wang’s astonishing numbers about China’s geology programs have played out across the world. Today, you’ll find Chinese geologists on every continent, in almost every nation, looking at every possible energy or mineral play. And their mission is quite well-defined: to locate deposits and arrange to bring energy and mineral value back to China. On a personal level, I myself have encountered Chinese geologists in my travels, as far afield as Ecuador and Eritrea, South Africa to Brazil, Madagascar to Manitoba, Australia to Alberta. I mean… They. Are. Everywhere. Also, in 2007 I wrote that: “China’s massive educational effort to train geologists and related scientific personnel for the future indicates a national desire to… adopt the best scientific knowledge of the West. … Because China intends, in its own unique way, to be among the prevailing civilizations of the future.” Well, yes. That was China’s well-formed, up-and-running plan back in 2007, and it appears that they are still executing on it. Keep it in mind as you enjoy the Easter weekend. And as I said at the beginning, we’ll get back to our own world next week, a world in which priorities are quite different to what we see out of China. Thank you for subscribing and reading. Best wishes… [Sean Ring] Byron W. King [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. 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