In times of rising geopolitical tensions, like what we’ve seen between the U.S. and Iran over the past few weeks, it’s not unusual for me to receive questions if now is the time to invest in gold. That’s because gold is often viewed as a safe haven during times of uncertainty.
Interestingly, gold soared in 2019, and with the recent bump higher due to the rising tensions between the U.S. and Iran, gold is now sitting near seven-year highs. So, it begs to question if gold has a lot more room to run in 2020.
The reality is that gold’s move higher in 2019 was due to the negative interest rate environment. Gold often goes up when there’s a lack of confidence in central banks. And, as you know, interest rates were negative in much of the world last year. The U.S. and the U.K. were two exceptions.
Gold also tends to do well when there is currency chaos. But we don’t have that right now with the main reserve currencies. The British pound recently strengthened, thanks to the Boris Johnson win in the U.K. election and his party winning the majority of seats in Parliament. Brexit is now increasingly more likely to be completed this year, as Johnson’s campaign pledged, “Getting Brexit Done.”
In addition, the U.S. dollar remains strong and was incredibly resilient amid rising U.S.-Iran tensions recently. Remember, commodities, including gold, are priced in U.S. dollars. So, when the dollar is strong like it is now, it shoves down all commodity prices.
Overall, gold had a nice run in 2019 during the negative interest rate environment. But I don’t expect gold to be that strong in 2020.
Why I’m All In On Stocks
Sure, gold is up 19% in the past 12 months – but it’s up less than 1.5% in 2020 to date, after hitting a ceiling last week. That’s even with the sudden spike in tensions with Iran.
This tells me that gold is running out of momentum. And, in my experience, momentum is everything. All the greatest growth plays of my career enjoyed strong positive momentum from big money on Wall Street.
Remember, gold is not a growth investment. It’s the investing equivalent of stashing cash under your mattress.
If things get to a point where that becomes necessary, my readers will be the first to know. However, the United States in particular is incredibly resilient – on all the factors I just alluded to, and more. Numbers don’t lie, and the data on the housing market, jobs, and consumer spending are all very supportive of further gains in 2020.
Already, my Growth Investor recommendations have been very strong, indicative of great forward momentum. Here’s just a few examples from my High-Growth Investments Buy List – all of which were made in just the last few months:
Another stock that I’m excited about now is up even more for us in Growth Investor: 45.53% in just eight months.
Talk about positive momentum – this company makes a crucial component to one of the biggest technological breakthroughs of our lifetime.
It’s called the “Volta Chip,” and it powers devices that use applications of artificial intelligence (A.I.).
The philosophy I used to find this investment is the same one you might have used to make big gains in the oil boom of the early 2000s. Back then, investors could either speculate on oil futures contracts… or they could have bought shares in Core Laboratories (CLB).
Core Labs did no drilling or exploration of its own. It provided technology to lots of companies who did. And as oil prices climbed from $30 per barrel in 2003 to $100 per barrel in 2008, Core Labs’ customers had more money to spend on exploration. Along with that, CLB stock rose 1,100%…with less risk.
Now, picture an industry like Big Oil as a huge skyscraper with lots of offices. By buying stock in an individual oil company, it’s like having a key to one of those offices. By buying Core Laboratories, it’s like having a “Master Key” to all of them.
The A.I. “Master Key”
Core Laboratories was the Master Key to the 2000s oil boom. And here, the Master Key is the company that makes the “brain” that all A.I. software needs to function, spot patterns, and interpret data.
If you’ve ever used Netflix (NFLX) or Zillow (Z) – both of which use A.I. to recommend the right movie or the right house, respectively – or even an email spam filter, then you’ve already seen the benefits of A.I. in your own life.
And this company’s Volta Chip is what makes it all possible.
You don’t need to be an A.I. expert to take part. I’ll tell you everything you need to know, as well as my buy recommendation, in my special report for Growth Investor, The A.I. Master Key. The stock is still under my buy limit price — so you’ll want to sign up now; that way, you can get in while you can still do so cheaply.