The Two Key Factors That Will Drive Gold Higher

We recently had our annual Gold Stock Analyst's Investor Day event, and there were two market factors repeatedly discussed. Let's take a quick look at those two factors today... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Editor's note: Lots of folks have given up on gold. But as we shared this week, the big rally we saw recently could be the beginning of a long-term surge for the metal. Our colleague and gold-investing legend John Doody agrees. In today's essay, he explains why two important forces are lining up in gold's favor today... --------------------------------------------------------------- The Two Key Factors That Will Drive Gold Higher By John Doody, editor, Gold Stock Analyst --------------------------------------------------------------- It began on a warm Florida evening, with a dinner and cocktails cruise... set against a backdrop of fear and inflation. A few weeks ago, we gathered for Gold Stock Analyst's Investor Day – our annual gathering of key executives representing our "Top 10" gold stocks and Silver Stock Analyst's "Fave 5" silver stocks. We kicked off with a cruise along Fort Lauderdale's Intracoastal Waterway... past the luxurious waterfront mansions and the marinas filled with superyachts. The next morning at the new Hyatt Centric hotel on Las Olas Boulevard, the limited-capacity audience was treated to companies presenting, explaining, and answering questions. And again and again, the subtext running beneath all the commentary included two factors that are always good for gold... rising inflation, and mounting investor fear. Let's take a quick look at those two factors today... --------------------------------------------------------------- Recommended Links: [GOLD BREAKOUT ALERT: No. 1 Way to Invest in Gold Today]( Gold legend John Doody – whose gold strategy has made audited gains of 1,033% since 2001... beating gold, gold funds, and more than doubling the S&P 500 Index – is coming forward for the first time in years to share exactly where he thinks gold is heading next... and the No. 1 way to play it. [Click here to see the gold approach that has made 1,033% gains since 2001](. --------------------------------------------------------------- [80% Crash Coming?]( The senior analyst behind 24 different triple-digit winning recommendations (as high as 849%) just gave what he calls the most important interview of his LIFE. He thinks the market could be on the verge of an 80% collapse. He lays out all the proof... plus a detailed plan for exactly what to do. (And it does NOT require shorting... options... or anything speculative.) [You must see this interview today](. --------------------------------------------------------------- Inflation hit a 40-year high in January. That's based on the personal consumption expenditures ("PCE") price index, which tracks consumers' actual spending. The Federal Reserve likes this index because it reflects how consumers react to higher prices... shifting from steak to hamburgers when the former is too expensive. Since most buyers trade down, the PCE shows lower inflation than the Consumer Price Index, which tracks a fixed basket of goods. For 2021, the PCE averaged a 6.1% increase over 2020, the biggest jump since 1982. For those who didn't trade down and continued to eat steak, their inflation rate has been even higher. And then there's the war... War brings fear. Russia's horrible invasion of Ukraine drove precious metals demand higher because gold and silver represent true spending power that can't be debased by the printing press. Before the war, the Russian ruble traded around 75R to $1. Now it's well over 100R to $1 – in other words, less than a penny per ruble. Gold jumped to around $2,000 per ounce at its most recent peak. But it hasn't yet hit the $2,500-an-ounce level we have forecast. We believe this is because gold makes up about 22% of the Russian central bank's $630 billion in assets (according to the Wall Street Journal). International sanctions now prevent the bank from selling its assets held in other currencies and at other central banks. In other words, Russia can't access the euros, yen, and pounds it needs to support the ruble and buy necessary supplies for its economy. That leaves only its gold available to sell. To whom? China, possibly. China is already the world's No. 1 gold producer, all of which goes into its own monetary reserves. So it has incentive to support the price of gold. Regardless, until the market is certain that Russia will not (or cannot) dump its gold onto the markets, the gold price will fluctuate... before ultimately zooming higher. Now, the war will end at some point. That could also send gold lower – but in that case, its price will be supported by its other leg, higher inflation. While the circumstances were not exactly like today's, consider what happened to gold when the Vietnam War ended and inflation spiked... Gold traded for $167 an ounce on April 30, 1975, when Saigon fell. The inflation aftershock continued until gold peaked at $850 an ounce on January 21, 1980. The same story could play out again. We hope the war ends soon. But both these factors are in place for now... And that should push gold prices much higher from here. Regards, John Doody Editor's note: Given the ongoing situation in Russia... inflation... and the Fed's commitment to raising rates, you might think you know the whole story on gold. But an even bigger catalyst is brewing for the metal right now – one that most Americans are overlooking. And if history repeats, it could send a specific set of investments soaring... [Learn the details here](. Further Reading Gold boomed recently, soaring on these two factors. It has pulled back slightly since. But this signal shows the upside likely isn't over yet... [Read more here](. "Nobody knows for sure how bad unexpected inflation will get," Mike Barrett writes. Inflation can come from surprising places. And that means its effects are likely far from over... Learn the steps you should take to prepare – and profit – [right here](. INSIDE TODAY'S DailyWealth Premium This company booms alongside gold without even trying... With multiple tailwinds behind precious metals, now is a great time to own gold. And one company has found a clever way to profit off this trend... [Click here to get immediate access](. Market Notes THIS GROCERY-STORE CHAIN IS HITTING RECORD RESULTS FROM THE LINGERING PANDEMIC Today, we're checking in on a company that's coming out of the pandemic stronger than ever... COVID-19 turned the world on its head over the past two years. And it changed the way we go about our daily lives. Trends like [telework]( and [shopping at home]( became the norm. Today's company was a big beneficiary from the at-home cooking trend... [Weis Markets (WMK)]( is a $2 billion Mid-Atlantic supermarket chain. Folks who got used to COVID restrictions have kept making meals at home. And despite supply-chain disruptions, the tight labor market, and inflation, Weis is still going strong... Recently, President and CEO Jonathan Weis said that results for fiscal year 2021 "significantly exceeded pre-pandemic levels." He added that Weis had benefited from the at-home cooking trend... and that the last two years of net sales and income from operations "were the first or second highest in our company's 110-year history." WMK shares are in an uptrend, up more than 100% in the past two years. They recently hit an all-time high. And with strong sales behind it, this company could keep growing from here... --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers’ feedback. To help us improve your experience, we’d like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. Or e-mail info@stansberrycustomerservice.com. Please note: The law prohibits us from giving personalized investment advice. © 2022 Stansberry Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Stansberry Research, 1125 N Charles St, Baltimore, MD 21201 or [www.stansberryresearch.com](. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Stansberry Research does not recommend or endorse any brokers, dealers, or investment advisors. Stansberry Research forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Stansberry Research (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.