Update - November 16, 2021
Gold, Tesla and Some Big Gains
It’s the “next Tesla.”
That’s the way I pitched my bullishness for Lucid Group (LCID). Not to keep hammering the same beat on the same drum… but aren’t you glad I did?
Look at this chart…
It looks like I’m not the only one who believes Tesla has some fierce new competition. Tesla has seen its value plunge over the last week as its founder decided this top looked like a good time to sell.
The stock price has fallen 20% as Elon Musk has sold a big chunk of his shares and, just as importantly, as fresh competition has hit the street.
It’s no coincidence that Tesla is falling as Lucid makes its first deliveries and EV startup Rivian Automotive (RIVN) hits Wall Street for the first time.
With the president putting his pen to Congress’ oh-so-lauded infrastructure bill, the EV sector is getting a big boost. Consumers will get thousands of dollars’ worth of government-sponsored credits for buying a battery-powered car.
That’s good news for Lucid.
Keep on holding your shares. They’re going higher.
Golden Gains
But the bigger story these days is one that’s not getting nearly enough attention from the media.
It’s huge. It’s powerful. And it is the market’s driving force.
Here’s the chart that should be on the screen of every major financial news outlet…
It shows the real rate on the 10-year Treasury… the figure our Modern Asset Portfolio hinges on.
The rate hit a fresh all-time low last week. Thanks to surging inflation – which gets subtracted from the nominal rate of the 10-year Treasury to get the “real” rate – the figure dipped all the way to -1.17%.
That’s huge. It’s like adding rocket fuel to an already zooming market.
What’s most interesting, though, is what it has done for gold… and especially for our recent move into Sandstorm Gold (SAND).
Our timing was perfect.
We got into the play on October 5, when the price was just $5.47 per share.
Today, those same shares cost more than $7 each – a 30% gain in little more than a month.
Gold’s price has risen about 6% during the same time. That shows the value of investing in a royalty company… a company that can use ultra-cheap debt to hand shareholders an outsized return.
From here, gold will head back to its 12-month highs around $1,900 an ounce. It could happen by Friday, especially if this week’s big-name earnings reports show the effects of inflationary pressure (like Walmart did this morning).
If gold can rise above that level, then it will be a race to see if it can hit all-time highs of $2,000 per ounce before the end of the year.
Given the money printing, inflation and economic head-spinning going on these days… there’s little doubt that this should be gold’s time to shine.
That means very good things for our stake in Sandstorm.
Keep an eye on real rates this week. They’ll tell the tale.
Right now, it’s a very bullish plot.
Our portfolio proves it.
Congratulations on so many gains.
Note: Crypto is screaming “Buy me!” this week. Check out my latest interview – including the crazy tale of a billion-percent gainer – to see what I’m watching. Click here.