Shae Russell: So, I want to talk to you today about what the Gold Window is. Now, in the past 40 years, it s only appeared twice. I believe it s appearing for the third time. However, I need to show you why it appeared the first time. The first Gold Window began in 1971 when President Richard Nixon took the US off the gold standard, ending the Bretton-Woods Agreement. Now, the Bretton-Woods Agreement was the ability to convert US dollars into gold. So, at any time, you could walk up with your US dollars and claim gold in place of them. Ending that convertibility of US dollars into gold is actually what opened the very first Gold Window back in 1971. Now, when Richard Nixon opened that Gold Window in 1971, he pretended he was doing it to save the US dollar. That s actually not true. The reason why he did it was because the US was broke. They d spent the 1960s fighting wars and building a whole bunch of things throughout the country, they d run up massive amounts of debt, and foreign creditors were starting to cash in their US dollars for gold. That s why he actually ended the convertibility of gold into US dollars. The thing he did, though, was unleash one of the biggest booms in the price of gold history had ever seen at that time. What caused this rare phenomenon? Essentially, what Richard Nixon did was devalue the US dollar. Overnight, he effectively declared the US dollar worthless, and contrarian investors picked up on this. By the end of 1972, the price of gold had risen from $35 to $100 per ounce, an incredible price rise in gold that almost everybody ignored. What history now tells us is this was stage one of the Gold Window. The key to that is currency devaluation. By declaring the epicentre of the world s financial system worthless, they unleashed the power of gold. So the first stage is when gold starts rising against fiat currencies. What s the next stage? The thing to remember here isn t so much that the gold price was rising in the early 70s, it was that the US dollar was awakening. A strong gold price basically tells you that the US dollar is weak. While contrarian investors picked up on that early, mainstream investors started to pick that up in about 1973 and 1974. That s actually the indication that stage two of this Gold Window is happening. That s when the mainstream comes along and start investing in gold. Gold futures didn t actually exist until 1974. When Wall Street works out how to put a contract on it, you can basically guarantee that mainstream investors are going to pick up on this investing idea. So transitioning from stage two and stage three is actually quite a simple process. It s simply panic. That s what drives these mania things in gold. All the setups are already in play. We ve already got a weak currency, we ve already got investors moving in and, as the currency gets weaker and weaker, in spite of the central bank raising rates throughout this period, investors suddenly panic that their money is worthless. That is the key to stage three. That s when this manic phase enters and the price skyrockets. As
I said, three or four times in 12 months, the price of gold rallied in this manic phase as more and more investors tried to climb in, desperate to protect their assets. What happened to gold stock during that time? Here s the thing about this manic phase beginning in the late 1970s: There weren t computers then. We weren t able to track every single tick of the stock prices going up. In fact, I ve had to do some serious research to even find this information because it s just not readily available. But what I did find is incredible. We ve got companies that went up a few hundred percent in that time. But what s truly remarkable is the companies that went up thousands of percent in 12 months. Take Eagle River Mines for example. That stock went up an incredible 3,400% in 12 months. Then you ve got another one, Wolf Resources 3,700% in 12 months. And, of course, there s the one that almost nobody had heard of at the time, which was Copper Lake 13,000% in 12 months. That s all because of this manic gold phase. All of these tiny microcap stocks just exploded in share price value during this manic phase of the gold price. Gold goes up one dollar, these types of stocks go up by multiples of dollars. This is the idea behind Project Prophecy. What happened the next time the Gold Window opened? After the first Gold Window ended, gold went quite [and] markets had changed. However, come 2002, something was afoot in the gold price again. Again, the same trigger was sitting there, and the second Gold Window opened. The US was running up billions and trillions of dollars in deficit. Alan Greenspan, the Federal Reserve chairman at the time, lowered the cash rate to 1%, essentially devaluing the US currency once more. Again, most people didn t take notice. Between 2002 and 2004, the price of gold doubled once more but, again, only contrarian investors picked up on the currency devaluation, which was essentially the gold price being stronger against a weak US dollar. Basically, investors started swapping dollars for gold. This was also the time when governments and central banks around the world were selling off their gold reserves, right? Well, this was another signal too. What you need to remember is around the start of the new century, central banks around the world began dumping their gold stores. The Bank of England is one, and the Reserve Bank of Australia is another that was more than happy to dump their gold before the new millennia started. So that was another signal that investors should have been getting ready to move into gold. However, that gold window didn t really begin again until the US triggered that their US dollar was worthless.
A second Gold Window didn t really begin until that currency devaluation occurred in the US dollar. That was the signal for contrarian investors that something was afoot in the US markets, and that basically now is the time to get out of greenbacks and into gold. Now, stage two, for the second Gold Window, really began towards the end of 2004. Believe it or not, that s when the Federal Reserve Bank began raising interest rates. Now, few people realise that when the central banks raise rates, especially in the US, the price of gold actually moves up with it. It basically supports interest rate rises. That s because gold s often seen as a hedge [against] inflation. When the central bank began moving interest rates in 2004, this was the investor phase of the window so stage two. This is when more and more investors came in. Over this period, there s actually evidence in the US that exchange trade funds went from holding two million ounces in gold to 20 million ounces in 2006. Very much making 2004 to 2006 the investor part of the second Gold Window. Here we are in the second Gold Window, and it s playing out exactly like the first one. We ve had the first one, which is currency devaluation. We ve had the second stage, which is when investors jump on board. Then we have the third stage, and that s the manic phase. That s where investors are all moving into physical bullion at a rapid rate, but gold stocks go bananas. Couldn t I have just waited until the mania phase to make my move? Now, during this mania phase, if you were trying to get into gold stocks, you d missed out. It was too late, because these stocks were rising tens of percent every single day. Companies like Zimplats and Independent Group Holdings they rallied hundreds of percent inside three or four months. So, if you were trying to get in during the rally, you ve missed out. You needed to move in during the currency devaluation stage or the investor stage. Santa Barbara I mentioned it in the other video that company s a household name now. Nobody had heard of it in 2007. It was just a tiny microcap stock that the market generally ignored. Furthermore, a lot of tiny microcap stocks during 2007 this manic stage became buyout opportunities for massive international companies. Canadian and US miners started coming down to Australia and buying up our tiny microcap gold mining stocks. The sort of stocks that weren t on many investors radars. As a result, early shareholders made hundreds of percent in gains. But trying to get in when the buyout opportunities were there, it was too late. So, to maximise the profit potential of the Gold Window, I d have to move quickly and early? So, if you want to make big gains in these gold mining stocks, you cannot wait until the mania phase hits. The window to make the big money actually starts well and truly
beforehand. But it s a very, very small window, and timing is crucial. You need to know when to get in if you want to walk out with your 600% return on your gold stocks. Now, there is a way to identify the sort of companies that are buyout opportunities, and the sort of company that are likely to go manic in huge gold boom market. We re going to talk about how to do that tomorrow. Obviously the risks are a lot higher for these kinds of stocks, correct? I m not talking about the kind of stocks that are your BHPs and CBAs. The sort of ones that are mediocre and don t do a great deal in the market they go up a little, they go down a little. I m talking about seriously risky stocks; sort of the thrill of the hunt. The ones that could go to zero, but the ones where you could make thousands of percent gains in a truly short space of time. The sort of gains that are risky don t get me wrong, all stocks are risky. These are just super-high risky stocks that could produce exciting returns for eager-minded investors. From what you re saying, it sounds like this is in no way the same as buying bullion These stocks, while they re leverage plays on the gold price, are completely opposite to gold bullion. Gold bullion is a relatively risk-free investment. You can always cash it in at some point and swap physical bullion for fiat dollars, whereas these stocks are a proper type of risky. I mentioned in the last video that investors were able to get a 1,200% gain from a tiny microcap stock I recommended. Do you know one reader emailed in and told me he bought a yacht with his profits? That s the sort of risk and potential I m bringing to you today. So for those sort of investors that are willing to take a risk, a new Gold Window is coming. New opportunities are opening, but the timing is everything, and these windows don t last long. What s your key message for investors like me that are reading this today? In the previous two Gold Windows, the opportunity to buy and take advantage of that gold mania lasted somewhere between four to six years. This time is different; that window is much more narrow. Here s why The first stage of those two windows were classified by currency devaluation and investor sentiment. The difference is, not only are we seeing currency devaluation, but we re also seeing investors move into gold at the same rate. On top of that, we have the Federal Reserve Bank raising rates, and they re going to raise another two times this year, or so they ve led the market to believe. Furthermore, currencies around the world are reaching new highs when compared to gold. The Indian rupee, the Russian ruble and the Turkish lira are all at highs compared to gold. This hasn t happened before; all of these events have never worked in sync.
So what we normally see take four to six years to play out has happened inside 18 months. It s knowing this that makes me think this opportunity to get in before the manic phase hits won t last as long as it did before. In fact, that window is shrinking day by day. The question is: Is there a way to identify those stocks set to soar this time? My experience tells me there is. It s a new proprietary methodology that I ve been developing for years to prepare for this moment. And that s what we re going to reveal tomorrow.