EDITOR'S NOTE: Commodities are very expensive these days. We know this firsthand from the price increases we encounter at the grocery store and the pain we feel at the gas pump. With prices soaring across a wide swathe of commodity products, what would you think if someone were to claim that what we've seen so far is a mere blip on the screen? Analysts at Katsua Research say this is the case. Take a look at their S&P Commodity Index vs S&P 500 chart and pay close attention to the price spikes. Next, look at where we are in the cycle, and notice how flat it looks near the bottom. If anything, this supports the idea of a commodities supercycle that economists were predicting a few years back. The bad news is that the chart might also indicate that inflation still has a ways to go before hitting a “midpoint” let alone a “peak.” But for precious metals holders, if Katsua’s forecast holds true, then the gold rally and silver’s semi-bullish slump are mere blips on a much larger trajectory.
This is the single most important chart in the world right now.
IF this is the beginning of a VIOLENT move upwards, commodities are about to get very expensive…
Source: Katusa Research
You’ll see that, relatively speaking, commodities are the cheapest they have ever been compared to the S&P 500.
There’s nowhere to go but up.
You might be thinking, “Yeah, but it feels like gold is already getting pretty high close to $2,000.”
But by all metrics… gold remains at historic lows.
How You Can Make a Killing… Even If You
“Missed Out” on the First Gold Bull Rush
The gold market has always moved in cycles—from dramatic boom to overnight bust, and eventually back again.
So far in this “boom,” gold has barely risen 20 percent from its floor.
That’s not even close to the minimum required to qualify for a true “bull market” over the past century.
The smallest gold run-up in the past 90 years was 45 percent—more than twice the current gain.
Every other rally was far, far bigger:
- From 1972–1974, the rally yielded a 100 percent gain.
- From 1978–1980, another 100 percent gain.
- Then from 2007–2010, a 67 percent increase in the price of gold.
Source: Katusa Research
As you can see from the chart, when gold is ready to rise, it takes off.
Every single one of the years in the date ranges above saw an increase of more than 20%.
That’s how you know the gold rally has barely just begun.
Normally, when Marin Katusa finds a great opportunity, he doesn’t run into the market and buy at any price.
Instead, he stays patient and waits for great prices.
Marin “stalks” the stock. Waiting for the market to mark down the merchandise he wants to buy. And if it takes him weeks or months to accumulate at the price he wants, so be it.
That’s just how the resource market works.
In fact, Marin published on one company for years patiently waiting for it to become cheap.
- After years of patiently waiting, his target price to buy was reached in 2020—he published and did exactly what he wrote.
I watched him make a fortune and then shortly after, published what he calls a Katusa Free Ride for everyone. And now collects a free dividend at no cost base.
This company was and is the world’s largest company in its specific sector.
I’ve watched him operate likes this in the market for years and years…
And seen first-hand how he’s built a fortune even in bear and sideways markets.
Think about it…
You can’t go online without seeing record prices in Lumber, Wheat, Nickel, and Zinc prices go through the roof.…
Commodities are attracting capital. LOTS of it…
Because of rising geopolitical tensions and war…
The Rush to Safe Havens is On
This sets up the US dollar to continue to dominate the world as a reserve currency.
It is at times like these where all the cards are put on the table. Where is the true safe haven? You aren’t seeing people rush to Rubles, Yen, or Euros.
They are rushing into the dollar and gold. Both of which have appreciated sharply since the conflict began.
This is a world he’s described many times before where we can have both a strong US dollar and strong gold prices.
The Crowd is Paying Attention
The number of mining companies in the S&P 500 will increase… which means an increase in the flow of capital into the sector.
At the end of the Cold War, there were 20 mining companies in the S&P 500. Today there are 2.
Source: Katusa Research
Sure, you could buy gold bullion…
It’s independent of government-controlled financial systems. Your money will be relatively protected from currency wars.
Sure, you could buy gold-backed ETFs…
They offer a little more leverage and can give you some quick profit when gold starts to rise.
But when gold starts going up… Gold stocks tend to go up a lot.
On Tuesday, May 3rd Marin Katusa is going to release his brand-new, gold special report.
It will detail FIVE powerful reasons gold could enter a great bull market.
And he’ll show you the best way to boost your returns right now by opening up his “Core 4” gold stocks portfolio.
You’ll want to pay close attention because this isn’t something he does often.
Mark your calendar.
Publisher, Katusa Research
Originally published on Katusa Research.