Economic uncertainty, the most precarious geopolitical situation since World War II, and underfunded entitlement programs ensure that the more things change, the more they stay the same.
In such a doom spiral, Nick Giambruno understands that gold will continue to appreciate and a “#1 Gold Stock” will increase even more.
The Teaser
“You can’t taper a Ponzi scheme.”
Nick Giambruno is the protege of a well-known name in the investment newsletter world, Doug Casey. Now, he's hoping to make a name for himself by finding investments with the potential for life-changing profits.
Earlier this year we reviewed and revealed his “#1 Bitcoin Stock” and we also just finished looking at Jeff Clark's Gold Trading Strategy.
Alright, back to the teaser and Nick's Ponzi comment…
This stems from the belief that “the Federal Reserve is running what amounts to a giant Ponzi scheme.”
Creating new money to pay existing bondholders sounds like a Ponzi to me, but Austrians and Keynesians will forever disagree on whether or not government intervention in the market makes things better or worse.
However, you don't need to be an economist to realize that the Fed can't continue pumping ever-increasing amounts of new money into the system without there being severe consequences.
Something has got to give.
Gold Cards And Deficits
Hopes are high that the new Trump Administration will be able to take a DOGE-like chainsaw to the national debt.
Despite some tangible ideas like selling $5 million Gold Cards in exchange for permanent residency and cutting entire Federal Government departments, potentially saving billions. It's going to be difficult to chip away at the $36 Trillion (and climbing) national debt.
That's because interest expense on this debt is set to become the BIGGEST item in the federal budget. Right now, it is the fourth-largest budget item.
The bottom line is, that if the Fed doesn’t bring interest rates down, the growing interest expense will bankrupt the US government and bring down the entire debt-based economy with it.
Ludwig von Mises said it best:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion.”
In such a catastrophic event, there are only a few ways to protect our money and savings.
The Pitch
One of the ways is with Nick's “#1 Gold Stock to Own Right Now.”
This report includes its name, ticker symbol, and is only available to subscribers of his “premium investment research newsletter” Financial Underground: SPECULATOR.
The newsletter touts a positive track record and costs $1,799 per year.
A subscription includes a 30-day money-back guarantee, minus a $500 “tire kicker” fee, 12 monthly issues of the newsletter, regular weekly briefings, and four additional reports.
Is QE Infinity Next?
Quantitative Easing (QE) is the politically correct way of saying rampant currency debasement by central bankers.
Nick says QE is about to come roaring back like a fashion fad and be bigger than ever before.
For some context, the Fed was QE'ing to the tune of $120 billion each month during Covid, which was more than double the $40 billion per month during QE3 in the early 2010s, which was significantly larger than the monthly amount during QE1 and QE2 in the late 2000s.
The trend is clear, but what could be a possible trigger for QE Infinity?
The price of eggs and financial markets, as bad as they may be, won't do it.
It will take something drastic like a black swan event for the Fed to move past quarter-point rate cuts.
If it does fall back on increasing currency debasement, there may be no way back this time around and those holding US dollars, Treasuries, and other fiat currencies will be on the losing end.
Mankind's Most Enduring Money
One of the best ways to shelter oneself from currency debasement throughout history has been by owning gold and the companies that produce it.
It is the physical commodity hardest to produce and thus, most resistant to debasement.
This is why the FDR administration even went so far as to sign an executive order banning “the hoarding of gold coin, bullion, and gold certificates within the United States” to prop up the dollar.
However, gold mining stocks, which are a leveraged play on gold, have never been outlawed.
For example, if gold prices rise by another 10% to $3,100, miners’ profits don’t just rise by 10%, they double, from $100 to $200 per ounce.
If the price of gold doubles from $2,900 to $5,800 an ounce, miners' profits don’t just double, they go up 10x!
The only problem is, figuring out which mining stock to buy.
By some estimates, there are over 1,800 mining stocks today and only 1 out of every 3,000 mineralized anomalies become a mine.
Nick says he's identified a special type of gold mining company that minimizes these risks and provides a low-risk, high-reward proposition.
Nick Giambruno's #1 Gold Stock
Unfortunately for us, no direct clues were forthcoming from Nick about his top gold stock for 2025. Nick has a healthy fear of the Green Bull!
Similarly, an online search yielded no tangible results.
However, we we're able to read between the lines and draw at least some conclusions.
- Nick mentions that his pick is “a special type of gold mining company.”
- It maintains exposure to explosive upside potential.
Based on these general descriptions, Nick's #1 Gold Stock is very likely a royalty company with a diversified portfolio of mining interests, giving it upside potential.
The universe of publicly traded mining royalty companies is small and numbers no more than 27 stocks.
Of these, only two have market caps of more than $100 million and are listed on US exchanges:
- Royal Gold Inc. (Nasdaq: RGLD)
- Gold Royalty Corp. (NYSE: GROY)
No way to confirm if one is Nick's pick or if it's an operating gold miner he's leaning toward, but it's some food for thought.
Positioned for Big Profits?
“The best business is a royalty on the growth of others, requiring very little capital itself.”
Warren Buffett is a proponent of royalty trusts and I too, am a card-carrying member of Royalty Stock Owners Anonymous (RSOA).
I own a few high-yield natural resource royalty stocks and they are ideal for providing safety of principal and a satisfactory return.
If capital preservation and income are what you are after, royalty trusts, REITs, BDCs, and others are the way to go.
However, the market, as represented by the S&P 500, is now down nearly 5% over the past month.
This is important because if capital appreciation is your top priority, then there may soon come a time when high-growth (tech) stocks become at least reasonably priced.
Owning a combination of fairly priced stocks at the forefront of artificial intelligence along with dividend-paying royalty plays is the best way to be positioned for big profits.
Quick Recap & Conclusion
- Investing savant Nick Giambruno foresees more economic turmoil ahead and understands that gold will continue to appreciate and a “#1 Gold Stock” will increase even more.
- It will take something drastic like a black swan event for the Fed to go back to Quantitative Easing (QE), but in such a doom spiral, there are only a few ways to protect our money and savings.
- One of the ways is with Nick's “#1 Gold Stock to Own Right Now.” The report includes the stock's name, ticker symbol, and is only available to subscribers of the Financial Underground: SPECULATOR newsletter, which costs $1,799 per year.
- Unfortunately, no direct clues were forthcoming from Nick about his top gold stock for 2025. He has a healthy fear of the Green Bull! However, we did drop the names of a couple of gold stocks that could be Nick's pick.
- Based on Nick's description, his #1 Gold Stock is very likely a royalty company with a diversified portfolio of mining interests, giving it upside potential. Owning a small portfolio of natural resource royalty trusts is a smart move for safety of principal and a satisfactory return.
Do you own units in a royalty trust? Drop a Yes or a No in the comments.