Where’s Marty McFly and his time traveling Delorean when you need him?
While I’m sure some of us would use it to go back in time and tell our younger selves to buy some choice stocks…
Maybe IBM (IBM) or Apple (AAPL), or maybe get in early on the whole dotcom era – who knows?! What I do know is that if I got a chance to take Dr. Brown’s flying Delorean out for a spin – one of my stops would be Washington, D.C. in 1971. The White House.
You’re probably wondering why. Well, sit back and I’ll tell you…
What many younger people don’t know (or have forgotten) is that the U.S. dollar was once tied to the price of gold per ounce and after World War II, America and 44 other allied nation got together in New Hampshire and hammered out the Bretton Woods system.
Under this system, many countries fixed their exchange rates relative to the U.S. dollar. Meaning that other countries’ central banks could exchange dollar holdings into gold at the official exchange rate of $35 per ounce; this option was not available to firms or individuals…
Which meant that all currencies that were tied to the dollar had a fixed value in terms of gold.
All was fine and dandy till French President, Charles de Gaulle, decided to reduce its dollar reserves by exchanging them for gold at the official exchange rate. France did this to the tune of $191 Million – which at today’s rate would be roughly just over a Billion dollars.
A few other countries jumped on this train too – and when you add in the cost of the Vietnam War – the cash strapped U.S. found themselves between a rock and hard place, and their influence over the global economy greatly reduced.
This all led to Richard Nixon deciding to end international convertibility of the U.S. dollar into gold on August 15, 1971.
This was the event that changed everything…
And by 1976, it was all over. In October, the government officially changed the definition of the dollar to “Backed by the full faith and credit of the United States” – all references to gold were removed from our currency.
Was it the right move? Of course! At the time we didn’t have a choice – nor a crystal ball…
However, if Nixon did have a crystal ball and was able to see that gold would eventually hit $1,250 per ounce like it has recently – then things may have gone a different way.
That being said – the dollar has never been the same since breaking with gold…
Which could be GOOD for investors who know how to make the best of a backward situation.
You see, over the last few years, the dollar has taken a pounding – being attacked, literally, by China and Russia in an effort to break the world from American influence.
While this has been terrible for the dollar…
It’s doing good things for gold.
In fact, a trusted research firm recently released their outlooks for gold and by the end of the year, they see it hitting $1,350 an ounce.
These outlooks are already affecting prices around the indexes…
So naturally, The Gorilla is looking for a way to turn this news into profits for his subscribers.
In the past, many investors put their money into ETFs or smaller junior resource companies to get the most bang for their buck…
The only problem? These can be pretty risky…
That’s why I’m searching for the most secure way for my subscribers to profit.
And here’s where I’m going to let you in on a little secret…
I’m not just looking at mining and gold stocks.
Because here’s the truth – the weaker the dollar – the more people invest. They’re looking to keep the strength of their money safe. Where it can actually grow…
There are plenty of companies that tend to profit MORE with a weaker dollar – one of which has been one of the best performers of the Great Recession.
You want to see a company that more than DOUBLED its stock prices during one of the worst economic climates America has ever seen – look no further than the golden arches of McDonalds Corp (MCD).
Their stock chart is VERY impressive…
In fact, since January of 2003, its stock has soared 797%!
Meaning if you had invested $5K into MCD then – you’d be sitting on almost $40,000!!
But they’re not the only company to kick butt with a weakened dollar…
There are OTHER companies out there that could very well give us those kinds of returns! And as soon as I lock one down using my risk-adverseGorillaTrades system, I’ll let my subscribers know ASAP!
I’d love for you to be at the profit table with them when I do…
That’s why I’m asking you to consider joining GorillaTrades BEFORE my next pick goes out – it could become a top performer in your portfolio!
But, even if you don’t – keep in mind that big things are happening – and a weakened dollar could mean BIG profits if you know where to look.
Until next time…
“Praise, like gold and diamonds, owes its value only to its scarcity.” –Samuel Johnson