A Bright Spot for Investors in 2023, Part II

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. A Bright Spot for Investors in 2023, Part II By Nomi Prins, Editor, Inside Wall Street with Nomi Prins 2022 hasn’t been an awesome year for gold. At least not in U.S. dollar terms. But as I [showed you last Thursday]( gold has actually held up fine against nearly every other major currency. And I believe it presents a bright spot for U.S. investors in 2023, too. There are four main factors that could boost the price of gold next year. In today’s essay, we’ll break them down one by one. And I’ll give you a simple way you can position yourself for profits. Recommended Link [Former Goldman Sachs Director Reveals Plan for New “Cash Shock” in America]( [image]( A massive change to the U.S. dollar is underway… It won’t just affect how you purchase groceries, gas, and consumer goods… But it will affect your current bank account, savings, your job, even your personal freedoms. A former Goldman Sachs managing director is revealing this new [“Cash Shock”]( in America. So, if you are banking with Wells Fargo, Bank of America, Chase, PNC, or if you have more than $1,000 in savings… Then please get ready… [Because the world’s most powerful groups…]( MIT, The Gates Foundation, The United Nations, Visa, 77 global Governments, the world’s most powerful group of unelected officials, and a new Executive Order from President Biden… Are igniting a “Cash Shock” that could soon transfer $40 trillion OUT of the system. If you’ve often wondered why America has become a land of extremes… Where the winners take all… while everyone else settles for the scraps… then [this]( will explain everything. [Click here to see what’s NEXT for America…]( -- Catalyst No. 1: Central Banks Keep Buying Gold Central bank demand for gold hit a 55-year high in 2022. That’s according to figures from the World Gold Council. You can see in the chart below how central bank demand hit nearly 700 tons of gold in 2022. That’s up by 383% compared to 2021. [Chart] We think this trend will continue. Countries outside the main G7 in particular have bought gold as a way to diversify their U.S. dollar exposure. (The G7 countries are Canada, France, Germany, Italy, Japan, the U.K., and the U.S.) And even if the dollar weakens, they are likely to keep doing this. That means one major source of gold demand will remain in play. [Featured: Former Goldman Sachs Exec: Everyone on Wall Street is investing, should you?]( Catalyst No. 2: Global Recession Many Eurozone countries are in recession because of high inflation. And they are experiencing especially high natural gas prices as we head toward winter. The International Monetary Fund (IMF) recently cut its forecast for global economic growth as a result. The U.S. could be heading for a recession because of the combination of persistent inflation and higher rates for borrowers, too. This could be positive for gold. Why? Because generally, during a recession, riskier assets come under pressure. That includes stocks and high-yield bonds. On the flip side, prices for hard assets, like gold, tend to rise. That’s because they represent a safe-haven, wealth-creation investment. And according to analysts at my former employer, Goldman Sachs, there’s a 30% chance of a recession. It would be accompanied by substantial rate cuts to zero by 2025. And that would see the price of gold jump to $2,250 an ounce. Recommended Link [Forget tech, crypto, bonds, and treasuries – buy these instead]( [image]( All you have to do is own a small handful of these unique stocks… And you could retire wealthier than you would by trading, chasing the latest “hot” stock, or doing anything your broker tells you. [Click here for the name and ticker of the #1 stock.]( -- Catalyst No. 3: The U.S. Dollar The U.S. dollar rose through much of 2022. That’s what our next chart below shows. It tracks the U.S. Dollar Index (DXY). That index measures the U.S. dollar against a basket of major global currencies. As you can see, the Dollar Index currently sits near a two-decade high… [Chart] This is largely due to the pace of the Fed’s rate hikes relative to hikes from other major central banks. Meanwhile, the U.S. economy and labor market have held up relatively well so far, despite high inflation. This has given the Fed more leeway to aggressively hike rates, which has strengthened the dollar. The federal funds rate is at 3.75-4%. This is higher than rates in the U.K., which the Bank of England (BoE) has set at 3%. And it’s higher than euro rates, which the European Central Bank (ECB) just raised to 1.5%. But we see the labor market showing signs of weakening. Last month’s figures showed an uptick in the unemployment rate from 3.5% to 3.7%. Plus, if inflation even drops a little more, it could give the Fed a reason to enter Stage 1 of its pivot. A slower pace of rate hikes would mean a weakening dollar. And that’s good for gold prices relative to the dollar. [Featured: One Stock Doubles Your Money, During Crisis?]( Catalyst No. 4: Investors Are “Over” Rate Hikes Central banks like the Fed, ECB, and BoE have hiked rates to try and reduce inflation, but the impact has been limited so far. The pace of inflation dropped slightly, as mentioned. But inflation remains high everywhere in the world. In the U.K., inflation is expected to hit 18%, and in Europe rise to 11%. Rates will continue to rise while inflation remains high. But they’ll rise at a slower pace, as Fed Chairman Jerome Powell alluded to after the Federal Open Market Committee (FOMC) meeting on November 2. This Stage 1 pivot will lower the comparative attractiveness of the dollar and U.S. investments somewhat. This will also incentivize investors to revisit gold as an asset. That will make gold prices perform well relative to the dollar. Recommended Link Market Wizard Reveals: [The One Ticker Retirement Plan]( [image]( Introducing the “One Ticker Retirement Plan”… It’s a way to trade just one ticker… And potentially make all the money you need – no matter what happens in the stock market. Sounds too good to be true? [Larry reveals everything in this interview – including the name of the ticker you need to get started.]( -- What This Means for Your Money In short, I believe the Fed will deploy its Stage 1 and 2 pivots to fight against a U.S. recession. That will put pressure on the dollar, and thus boost the dollar price for gold. I expect the stock price of best-in-breed gold companies to rise as a result. And at my Distortion Report advisory, I just recommended a gold miner that is set to benefit. It’s already up 8%, with plenty more upside potential. Now, out of respect for my paid-up subscribers, I can’t give the name away here. But a simple way to get exposure to a rising gold price is through the SPDR Gold Shares ETF (GLD). GLD tracks the price of gold, and it’s listed on the New York Stock Exchange. So you can buy it through your brokerage account. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins P.S. If you’ve been following my work, you know that I’m expecting the Fed to move to Stage 1 as early as this month. That makes now the perfect time to get in before everyone else does… and with a subscription to my flagship service, [Distortion Report]( you can set yourself up for gold’s coming rally. --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Last week Nomi wrote about a rally in silver and gold as we head into 2023…[catch up [here]( and [here](. Readers are weighing in today with their thoughts on these metals. Just read your take on silver, I hope you are right. I have some silver bullion coins. That is my only investment besides real estate. – Betty B. I bought gold and silver when Trump was first elected for $1200 and $18 respectively. I bought them as a hedge against a U.S. economic collapse. – James O. Spot silver did break through resistance this morning in London. Maybe it's not going to wait until 2023 to start moving. Caution should be the rule until the Fed does their circus act in a couple of weeks. Love your content. – Daniel H. I have collected silver coins since 1951 to 1954 as I was a teller in the bank of Nova Scotia. I believe some would attract collectors. I expect I have several hundred dollars face value. I will be awaiting the forecasted increases. Thanks for your forecast. – Ronald S. Is caution also your rule for the upcoming Fed “circus act,” as Daniel described? How much of your portfolio is in precious metals? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: A Bright Spot for Investors in 2023, Part II). IN CASE YOU MISSED IT… [17 reasons to devour Peter Zeihan’s new book]( Economist, investigative journalist, and expert investor Dr. Nomi Prins says there are “17 reasons why you need to devour Peter Zeihan’s new book, The End of the World Is Just the Beginning.” [Find out why here.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Ultimate Guide to Taking Back Your Privacy]( [The 101 Guide to Pre-IPO Investing]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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