Foreign holdings of US debt is down from near 40% in 2018 to under 15% now. Our trade partners see that dollar devaluation and loss of purchasing power far outweighs the interest received from US bonds.
Foreign Central banks are choosing to purchase real assets with the US dollar surpluses. Gold has been a store of value for over 1,000 years, and that’s not going to change anytime soon. CB’s bought a record 483 tonnes in the first half of 2024. That’s 15.5 million gold ounces worth $38.8 billion.
As our trade partners back away from US Treasury debt purchases, the Fed will have to step in and directly buy Treasury debt to manage yields lower. This is basically straight up debt monetization that results in more dollars and less purchasing power.
The US is forecast to pay $892 billion in interest in 2024 representing 2.4% of GDP. It won’t be long before the US suspends debt issuance to “save” on the interest cost, and directly print USD’s as popular MMT theory, espoused by Professor Stephanie Kelton, believes inflation and money supply have no relationship. Both political parties have climbed on board MMT, which allows them to spend with no limits.
The US is at the tipping point. God, or Gold, help us all.
That’s why I built the Golden Portfolio — to protect you from the constant erosion of the dollar’s value. My Golden Portfolio IV portfolio is up a whopping 175% so far YTD, and we still have a long way to go. The Golden Portfolio IV holds five smaller Gold explorers and developers that trade for only $571 mil enterprise value (EV), $330 mil, $209 mil, $89 mil and $54 mil.
Rising Gold is driving significant value into their underlying Gold projects. One member owns a project worth $659 mil at $2,000/oz Gold. At $2,500/oz Gold that same project is worth $1,306 mil. A 25% rise in the Gold price increased this New GPIV Member’s gold project value by 100%. That’s leverage!
The underlying stock should theoretically reflect the total profit value, but in this case, it doesn’t. Right now, it’s trading at just $0.30 per share, equivalent to a $50 million enterprise value, while its project is valued at $1.3 billion. That’s a staggering 96% discount from its fair value, which could represent a potential 2,600% return.
This company is largely unnoticed, having launched during COVID without any analyst coverage, so almost no one is aware of it — except me. I’m sharing this opportunity with you now, at what I believe is the ground floor, before the stock begins to rise.
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Our current GPIV members are some of the top picks in the gold sector and may be prime acquisition targets soon, given their price trends and asset quality. I already have four more companies ready to add to the GPIV lineup as the current members are acquired.