Doug Casey on why he’s buying #Gold & #MiningStocks

There could be a buying panic in gold and it could go much higher. We're in a new bull market for gold at this point, but nobody cares. Or even knows that's true. The same is true for silver. Although, silver is primarily an industrial commodity. It's the poor man's gold for many reasons.

Justin: How much higher could gold head?

Doug: Well, these things usually move in a hyperbolic curve. They start out slowly. Then, they accelerate. Same type of thing we saw with cryptocurrencies.

I think gold will do the same, although not to the same extent. My prediction by the end of this year is that gold will hit $2,000. In 2019, $3,000. In 2020, $4,000. By the time this bull market peaks, gold could reach $10,000. But I hate to say things like that…because it sounds so outrageous.

But look at the number of dollars in existence ($3.635 trillion in the M-1 money). Divide that by the 260 million ounces of gold the U.S. Government is supposed to own, and you get a gold price of $13,982/ounce.

Look at the number of dollars that are outside the U.S.—$10 trillion, $20 trillion, who knows?—and that liability is growing by $50 billion annually with the balance of trade deficit.

…

Money is a medium of exchange and a store of value—it shouldn't also be a political football, and a means for the State to finance itself. Gold itself should be used as money. Remember that the dollar—like the franc, the pound, the mark, and what-have-you—were just names for a specific quantity of gold.

So a six-to-one shot from here is not at all unreasonable over the next several years. And that would mean very good things for gold stocks.

Justin: So, it's safe to assume you're buying gold stocks?

Doug: Resource companies are essentially the only stocks that I'm buying right now. And that's because nobody's interested in them. They're very cheap. Of course mining itself is a crappy business. You can't invest in it, only speculate. But it's a great speculation now.

I probably do, on average, a private placement a week in mining stocks, which is quite a lot.

The only thing I'm afraid of is having too many stocks. You can't effectively monitor more than 15 or 20 stocks. And then you lose track of them. You can't keep up. You forgot why you bought them.

Unless I really like the stock and I'm planning on following it in particular, I sell the basic stock after the four-month hold period and keep the warrants in case I get lucky.

Justin: What else are you buying right now?

Doug: Well, I buy gold coins whenever the opportunity presents itself. I try to be disciplined about that. I just put them away and forget they exist. Unlike gold stocks, you can do that with gold coins.

Read the whole article here: https://www.zerohedge.com/news/2018-02-18/doug-casey-why-gold-could-go-hyperbolic