Gold hasn’t done this in years…

From Justin Brill, Editor, Stansberry Digest:

More and more evidence suggests Steve Sjuggerud is right…

The “Melt Up” has arrived.

Whether it’s booming technology stocks… surging marijuana stocks… or even the obvious bubble in cryptocurrencies… the signs are everywhere.

A speculative fervor is taking hold around the world, just as Steve has predicted for years. And there may be no better example than the case of the Swiss National Bank (“SNB”)…

Regular readers know Porter highlighted the absurd behavior of this central bank in June…

Like other global central banks, the SNB has adopted quantitative easing (“QE”). This is when a central bank “prints” money out of thin air and buys financial assets to boost prices. Initially, central banks restricted their buying to high-quality government bonds alone, but that is no longer the case…

The European Central Bank expanded its QE program to include riskier corporate debt, as well. The Bank of Japan upped the ante and began buying Japanese stocks through exchange-traded funds. But the SNB went even further. As Porter explained in the June 9 Digest

In 2014, Switzerland’s central bank began buying equities, too. But its domestic economy is so small that it decided to invest globally.

Today, the Swiss central bank owns more than $60 billion worth of U.S. stocks, including a huge $1.7 billion position in iPhone maker Apple (AAPL) and $800 million in social-media titan Facebook (FB). The Swiss central bank continues to expand its balance sheet at almost $100 billion a year. Its total balance sheet has now grown to around $700 billion – almost $90,000 in securities per Swiss citizen. And it’s growing every year… just by printing more Swiss francs.

Does that make any sense?

But the SNB has continued its buying binge since then. As we noted in the August 10 Digest, it now owns a record $84 billion worth of U.S. stocks…

In the second quarter alone, it bought 275,000 shares of Apple (AAPL), 800,000 shares of Microsoft (MSFT), 50,000 shares of Amazon (AMZN), 300,000 shares of Facebook (FB), and 80,000 shares of Alphabet (GOOGL), among others.

As of the end of June – the latest data available – the SNB’s balance sheet had grown to nearly $750 billion. And it now owns a staggering $2.8 billion of Apple and $1.3 billion of Facebook.

But the absurdity doesn’t end there…

You see, the Swiss National Bank trades publicly.

That’s right… Investors can buy shares in the SNB. They trade on the SIX Swiss Exchange under the ticker SNBN. But there’s a catch: The SNB isn’t exactly “shareholder friendly.” As the Wall Street Journal reported this morning…

Here is a bank that prints its own money, invests it and makes money when it weakens its own currency. Sounds like a good deal. But there are some caveats.

While the appreciation in the value of its holdings strengthens the SNB’s underlying finances, private investors don’t see the proceeds. The dividend is tiny at 15 francs a share no matter how big the profit… [and] private shareholders have little or no say over who manages the bank or how it is run. The SNB is mostly owned by Swiss states, known as cantons, and cantonal banks.

Remember, common stocks have value for one reason…

They represent a claim on a company’s future profits, whether through dividends or retained earnings. But that’s not the case here.

Unlike investors in most other stocks – even the riskiest penny stocks – SNB shareholders have virtually no rights whatsoever. To earn a profit, they must rely on the “greater fool theory” – that someone else will come along and be willing to pay a higher price in the future.

Given these risks, you might assume these shares would have little demand. But you’d be wrong…

In fact, it seems investors are falling over themselves to buy.

The stock is up a ridiculous 75% over the past six months. And as you can see below, it isn’t just trouncing the broad market. It’s also crushing the very same high-flying U.S. tech stocks the SNB has been buying hand over fist…

Years of central-bank manipulation set the stage for the Melt Up… So we suppose it’s only fitting that worthless shares of the most profligate central bank should lead the market higher today.

But if this isn’t proof of a growing speculative frenzy, we don’t know what is.

Of course, if you joined us Wednesday night, you know there are far better ways to profit from the Melt Up…

During his live briefing, Steve didn’t just explain why he’s convinced the most explosive gains are still ahead. He also shared the details of his “Melt Up Millionaire” project for the first time.

In short, Steve has created a brand-new portfolio designed to produce weighted gains of least 100% in the next 12 months or less. He says it is the absolute best and safest way to speculate on the Melt Up today.

In fact, Steve is so confident this portfolio will double your money in the months ahead, he’s even including a unique guarantee unlike anything we’ve ever offered before.

If you want to profit from the Melt Up – and get out safely before the meltdown begins – you owe it to yourself to learn more. Click here for all the details.

We’ll end today with a little good news for gold bulls…

During the Q&A portion of Wednesday night’s event, Steve noted that he’s getting bullish on precious metals again. In fact, he said he’s getting close to recommending gold stocks for the first time since the new bull market took a breather last summer.

If you know anything about Steve’s remarkable track record in gold stocks, this is an encouraging sign. But it’s not the only one…

You wouldn’t know it from the financial headlines, but gold is quietly having a great year. As you can see below, it’s gold is on pace to beat the broad market for the first time in six years…

Gold is up 12.4%, compared with just 9.2% in the S&P 500. This hasn’t happened since gold’s last great bull market ended in 2011.

Regards,

Justin Brill

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