Stansberry’s “Metropolitan Club” plan for the Gold Bull Mania

Friday File look at Porter's ideas for NIRP, currency crisis, and gold mania as he teases "The Gold Decade: How to Prepare for the Coming Bull Mania in Gold"

By Travis Johnson, Stock Gumshoe, April 8, 2016

Porter Stansberry is probably the best marketer out there in the financial newsletter world, and has access to the biggest email lists both within his company and in partnership with all of Agora’s other subsidiaries and affiliates… so when one of his ideas or letters gets a big marketing push, it tends to have a big impact and drive a lot of questions my way.

That’s certainly the case with his new push for gold, which he’s been ramping up over the past week or two — starting with a “special presentation” earlier on Wednesday. This is all in service of his new letter, which he’s calling Stansberry Gold Investor… and he’s also selling it in a different way, with a $1,500 up-front fee and, after that, a monthly $49 charge for “portfolio updates,” neither of which is refundable.

So, again, I feel like I should be raising prices here at Stock Gumshoe (kidding!). But we’ll put that aside for the moment — what’s Porter’s big idea, and what is he going to suggest for that $1,500 fee?

I can’t give you the whole story, of course, since I haven’t subscribed or seen his report — but he does hint at several investments and ideas in the ad, and we can explain those and feed ’em into the Thinkolator to see what pops out. And if you’ve got ideas or suggestions, we can listen to those, too.

The basic idea from Porter is that we’re about to have a “bull mania” in gold — with a gold price that could rise parabolically, perhaps hitting $10,000 an ounce or more. Here’s a taste of the ad to give you some idea (you can see the whole ad here, if you feel like sifting through it yourself):

“I recently returned from a private meeting in Manhattan with one of the most powerful men in the world. Based on this meeting, I believe gold and gold stocks will soon be worth 10-30 times what they are today. If You Missed My Emergency Briefing… Read this presentation immediately….

“The men at this table began to outline an economic scenario that horrified me.

“It’s a scenario akin to what happened in 1933 — a vast conspiracy to steal trillions of dollars from the U.S. Treasury.

“I would have never believed this if I hadn’t been at the dinner. Fortunately, two of my most senior colleagues were with me.

“They heard every word, too.

“And today, I want to show you what we learned and tell you how to prepare.”

Gets your attention, right?

The scenario that horrified Porter, to paraphrase a bit, begins with negative interest rates — going from ZIRP (Zero Interest Rate Policy) to NIRP (Negative Interest Rate Policy). That has already happened to some degree in Japan and Europe, and the big fear, he feels, is that it could h happen in the US as well… and in that case, in his words:

“… we’d likely witness not just a run on the banks… but an economic collapse like our country hasn’t experienced since the 1930’s.

“Why?

“Because overnight, banks would no longer be a safe place to keep your money.

“You see, no one in his right mind would keep his money in a bank if the bank were to force him to pay for the privilege. Likewise no one in his right mind would buy Treasury securities or any other bond that would charge him to hold it.

“Worse, as a country, we’d essentially be broadcasting to the world that our government and our banking system is broke….

“The world’s biggest hedge funds and U.S. government leaders are worried that if the dollar — the last reserve currency to pay any substantial rate of interest — goes into negative interest rates… there could be a panic out of paper currency and into gold.

“This wouldn’t be your typical ‘bull market’ in gold. It would be a ‘bull mania.'”

Porter ties this in with some of the other “big picture” arguments he’s made over the years, like his “End of America” promotion back in 2011 that got everybody riled up…

“I’ve recounted a number of potential scenarios in my essays throughout the years, including the likelihood of riots — perhaps even revolt — as a result of this recklessness.

“We saw hints of that with the Occupy Wall Street movement that sprouted up in the wake of the last financial crisis.

“And that’s why, also for many years, I’ve been warning that you absolutely must own gold and high-quality gold investments.

“I recommend that you, as I do, keep a good portion of your wealth invested in them — as much as 20%.

“Today, I’m here to warn you: If you haven’t done this yet — you must absolutely do it now…”

So he’s predicting a huge ramp-up in gold prices in the future — the near future, really, though he does not claim to have a date in mind.

And while he thinks the gold price will move up rapidly just because folks will want to rush out of NIRP currencies (which could be almost all the major currencies soon), he’s also got a “next step” scenario where the move out of the dollar becomes like a “bank run” on the currency in general, and gold could then soar to what now look like ridiculous levels….

Is $10,000 Gold Just the Beginning?

“You see, according to my source — who has held some of the most powerful, senior economic positions in U.S. government — the plan being discussed involves the ‘confiscation’ of over 8,100 metric tons of gold — essentially all of the gold held by the U.S. Treasury.

“That’s all the gold in Fort Knox, all the gold in New York, all the gold at the Denver mint.

“The plan is to swap out all of the worthless Treasury bonds that the Fed currently owns — that’s the $2.46 trillion in paper that the Fed purchased during quantitative easing.

“This QE is what’s been financing the government’s large scale deficits and what was used to essentially bail out the banking system following the 2008 crisis.

“The plan is to use those bonds to ‘buy’ all of the Treasury’s gold.

“This plan would have the appearance of legality. It would look like a transaction.

“But in reality, what’s really happening is all of the government’s worthless debt is being traded for something that rightfully belongs to all Americans.

“In short, our government’s most valuable remaining monetary reserve will be liquidated to stop the global run on paper currency.

“This will dramatically devalue the dollar… by government force….

“The conversation at the dinner I had at the Metropolitan Club in New York was a discussion about how to actually affect this change in the dollar… how to communicate this change to the markets… and the legal structures that would have to be created in order to affect this policy.

“Immediately after this ‘swap,’ a single ounce of gold would be worth, in the open market, somewhere in the neighborhood of $10,000 an ounce.

“That price is based on exchanging roughly $2.5 trillion in Treasury bonds for over 8,100 metric tons of gold.

“This would put the dollar on a much sounder footing, because instead of backing the dollar with worthless Treasury bonds that are paying a negative rate of interest, the dollar would now be backed and fully convertible into ounces of gold — a form of money that everyone around the world trusts and respects….

“Which is why I think you could make a for