I was 13 years old when India had a crisis. He borrowed too much money in dollars and desperately wanted it back.
India desperately needed dollars. So the government came up with a scheme to get it from people like my father who were making money with petrodollars.
The Middle East was booming, and thousands of Indians followed my father’s example and got jobs in Dubai and the like. They benefited from the fast-growing economy there.
The currency of Dubai is easy to exchange for dollars, and India was desperate to attract my father and others like him to borrow these dollars from the government.
To do this, India offered my father a one-time deal: borrow your Indian dollars and get 18% interest per year tax-free for 30 years. To sweeten the deal, the government has created it so you can get your money back in dollars in a couple of years if you want – or continue to earn 18% tax-free for 30 years.
Eighteen percent is a surprisingly high return. You are lucky to get this from stocks or risky assets. It’s unimaginable to get for the fact that you’ve essentially put your money into a government-guaranteed bank account.
It was the one shot in my life that brought back a risk similar to stocks.
And although I was only 13 then, I learned something absolutely critical in investing from what my father was doing when he received this offer …
My dad rightly guessed that even though India is going through a crisis, the chances that the government will stifle it are virtually nil. In other words, this crisis became an opportunity for him.
My father came in all. In this proposal, he invested all the spare dirhams of the UAE. It was a complete home run for him. And despite the fact that my father died in 2000, my mother a few years ago collected interest payments.
And here’s what I took from my father’s bet: if the odds are in your favor, you have to bet. You have to take the initiative and go for it.
Brilliant market star
Earlier this year, I told readers that gold mining companies were screaming. This is because the shares of these companies have experienced an incredible sales panic that has lasted six months.
I demonstrated that it was really a panic because at that time gold mining companies were making money. In other words, nothing happened at the enterprises to cause this panic. It was a pure emotion at work, driven solely by the irrational sale of investors.
At these prices you didn’t need to climb for gold to make money. All you need to do is stop selling. And then the natural demand from smart money investors who sniff out these panic situations to quickly make huge sums of money, increase prices. Here is the script I laid out.
And that’s exactly what happened. From this article, gold reserves rose 56% in just four months, while the S&P 500 index rose only 10% over the same period.
The rally did not end
If you bought gold miners and experienced these phenomenal successes … congratulations! Pat yourself on the back or maybe treat yourself. You did well.
Now that you’ve bought and earned money, I want you to know that I believe there’s even more profit ahead. This may seem crazy. However, I can tell you over 25 years of investing that if stocks make such huge strides, it is a sign that profits will be higher.
This is because at the heart of these profits for gold mining companies is a huge demand from all kinds of investors who are just waking up from the opportunity here. These stocks are still not declining with Big Money – the same group that threw them for two years, causing them to collapse.
In addition, in 2016, gold and silver prices rose 30% and 50% respectively. This means that gold / silver mining companies will show sales and revenue growth in 2016 and 2017 from the jump in gold and silver prices.
Finally, the collapse of the shares of gold mining companies forced management to carry out massive layoffs and cost reductions. They are held today. As a result, the profit margin grows. Even higher profits are ahead … and investors with big money will want to come back.
That’s why I don’t hesitate to say that it’s not too late for you to miss these first easy successes. Although gold reserves have risen more than 50% in four months, there is a lot of profit left in this trade.
You can be sure that crooked market makers and sluggish hedge funds will produce volatility to force you to sell your gold reserves, so expect more volatility as this trade makes you richer.