A Case of Golden FOMO

“Jim, I see the price of gold is soaring. Is it too late to get in? I don’t want to miss out on the big gains?”

If I had a gold coin for every time I’ve been asked a version of this “Golden FOMO” (Fear of Missing Out) question over the past couple of weeks, well, I’d be an even wealthier man than I am today!

All mirth aside, it’s a legitimate question that requires legitimate, and indeed, expert-level exposition, as gold has become a very shiny topic here for investors looking to maximize alpha, but who also don’t want to fall into the trap of buying “at the top.”

Now, while I consider myself an expert on many things having to do with the economy, markets, philosophy, literature, music, horology, etc., I do not consider myself an expert on gold. Yes, I trade gold and gold mining stocks, and I own gold in my own investment accounts.

Yet when it comes to an elite level, or in the U.S. Army what we call “Tier 1” operator-level expertise, I go to a fellow U.S. Army officer, a man who also happens to be a West Point graduate and, more importantly, a personal friend who I can unequivocally vouch for as possessing the upmost integrity and highest character, Rich Checkan, President and COO of Asset Strategies International.

Rich is my go-to source when I really want to understand what’s taking place in the gold and precious metals markets. So, rather than me taking you through the golden FOMO question here, I asked Rich to write me some thoughts for The Deep Woods readers that would put gold’s move into perspective, and that would argue compellingly in favor of owning the yellow metal.

And so, I present to you my friend and “golden Tier 1 operator” Rich Checkan’s thoughts, right now.

Fear of Missing Out on Gold?

By Rich Checkan, President and COO, Asset Strategies International

With gold surpassing $4,000 per ounce for the first time ever, many investors are experiencing FOMO — Fear of Missing Out — with respect to gold.

If you are in this boat, please read on, because nothing could be further from the truth.

The Mainstream Is Warming to Gold

Over the past few weeks, gold has made its way to the front pages of both the Wall Street Journal and The Financial Times. Heck, the Wall Street Journal actually made the case that you should own some gold.

Goldman Sachs recently upgraded their forecast for gold. Now, they are calling for gold to surpass $4,900 per ounce by the second quarter of 2026.

Ray Dalio, the founder of Bridgewater Associates, is recommending you hold 15% of your portfolio in gold.

CNN is prominently covering gold on television, while WTOP stated on the radio that gold is known to be the very best hedge.

And… most bullish of all… Morgan Stanley recently changed its investment allocation guidance. For years, Morgan Stanley recommended a mix of 60% stocks and 40% bonds. Now, they recommend cutting your bond allocation in half and allocating that to gold.

Yes… that is 60% stocks, 20% bonds and 20% gold.

It may not seem like much, but consider this. Morgan Stanley is a blue-chip brokerage with $4.8 trillion in assets under management. If its brokers implement their recommendations for all their clients, 20% of $4.8 trillion will be moving out of bonds and into gold.

That is $960 billion destined for ounces of gold. At $4,000 gold, that would translate into 240,000,000 troy ounces of gold, or roughly 7,465 metric tons.

I would be surprised if that did not have a meaningful impact on the market.

The Biggest No Brainer

Jim has been kind enough to feature articles on gold from me from time to time. If you read them, you know where I stand on the gold price.

I think it is going much higher!

Why? Simple. We measure the value of gold with mismanaged fiat currency such as the euro, U.S. dollars, yen, etc. All around the world, governments are addicted to debt. The cycle is simple.

Politicians overspend revenue. Rather than default, they inflate the currency. In other words, they print new currency and expand the money supply. More “worth less” currency units compete for a finite number of goods and services. As a result, prices for everything that has value increase.

That can be for a cup of coffee, a gallon of gas, a new home, a college education and, of course, for an ounce of gold.

Until there is a will from our Congressman and Senators to balance a budget, this vicious inflationary cycle will continue.

And… gold’s price will rise.

We Are Far from Done

As I said earlier, we are far from an end to gold’s bull market.

Central banks continue buying at a pace of roughly 1,000 metric tons per year. This will be the fourth year in a row. And investors are only now starting to buy in a meaningful way. We know this thanks to several indicators:

• Premiums on fabricated coins and bars are still low.
• The gold price is lower than three times the previous bull market high of $1,921.
• The bull market still has a few years before it reaches a minimum expected duration of 10 years.
• Interest rates are too low to dissuade investors from buying gold, and they are coming down.
• The U.S. dollar is entrenched in a weakening trend.
• The Gold/Silver Ratio (GSR) is above 80. We expect it to take 50 ounces of silver to buy an ounce of gold when the bull market is near to running its course.
• Geopolitical crises continue globally.
• Social uprisings continue domestically.
• Sentiment remains weak for gold, although it is starting to turn.
• The Dow/Gold Ratio stands at 11.5. The end of the bull market is only expected when it takes 5 ounces of gold to buy the DJIA.

Buy Now… or Kick Yourself Later

Until you can find me a consensus in Congress that will deliver balanced budgets for the foreseeable future, gold’s price will continue to wind its way higher.

Dips should be embraced.

–RC

So, there you have it, an expert analysis from Rich, and one that argues compellingly for a continued, long-term move higher in the yellow metal.

The way I see it, if you currently have golden FOMO, well, that’s legit, because you will miss out if you don’t own gold.

Conquer that fear today with an allocation to gold. And if you want to own physical gold, my strongest recommendation is to start that journey by calling Rich Checkan and the team at Asset Strategies International at (800) 831-0007 or email them at infoasi@assetstrategies.com.

Finally, if you mention to Rich and his team that you came to them from Jim Woods, they’ll give you a FREE consultation and a FREE 1-ounce Silver American Eagle coin for each qualifying purchase.

So, embrace the FOMO, and get golden, right now!

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The Folly of False Hopes

“False hopes are more dangerous than fears.”

–J.R.R. Tolkien, “The Children of Húrin”

Posthumously published in 2007 by his son, Christopher Tolkien, J.R.R.’s wisdom here tells us that false hopes are a prescription for complacency. In my experience, complacency born of false hope is not only the fast track toward mediocrity and even regression, but it also allows real dangers to grow unconstrained. I think it’s always better to acknowledge legitimate fears, as facing them directly and in full, rational focus is the only way to overcome, and even to harness for good, one’s fears.

Wisdom about money, investing and life can be found anywhere. If you have a good quote that you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my newsletters, seminars or anything else. Click here to ask Jim.

In the name of the best within us,