VRA Investment Letter: Bull Market in its Infancy. Once Again, the Semis Are Leading. Trump Orders Audit of Fort Knox

Good Friday morning. Yes, some of our leading indexes/sectors reached (short term only) overbought levels this week, and yes, seasonality is not great for this stretch of February, but we repeat; this is not a market that we want to be anything other than “long”, especially with investor sentiment remaining in “fear” territory at ATH’s and with the Innovation Revolution and Trump 2.0 just now kicking off.

In addition, even as the markets closed lower yesterday (S&P 500 -.43%), once again the smart money hour was strong. Plus, the semis lead higher, even managing to post a slight gain on the day, when most everything else was lower. We continue to believe that the semis will lead the way higher, as they eventually break out higher from 4 months of consolidation.

Our view remains; this bull market is only in its infancy. Driven by the Innovation Revolution, our 5 Big Bribe Megatrends and Trump 2.0, investors will be profiting for years to come (2030 +).

With thanks to Ryan Detrick, over the past 50 years, five major bull markets have averaged 8 years in length while producing an average gain of 288%. Our current bull is just 28 months old and up just 71%.

Once Again, the Semis Are Leading

Following the “DeepSeek” shakeout in the semis of 1/27, as seen below, the semis have led the market higher. From the birth of QE in 2008/2009, the semis have led the markets in both directions. This is bullish for both the semis and the broad markets. Our VRA Buy Rec is now up 33% from the 1/27 lows. We expect the semis/tech to continue to lead the markets higher.

Trump Orders Audit of Fort Knox Gold

I first recommended gold at $375/oz in 2003 and even as overbought as we are technically right now, I’m more bullish today than I was in 2003. Remarkable 10 year chart (the best long term chart of my career) and an even better fundamental story, featuring record levels of fiat currency printing along with record levels of central bank gold buying. We’re in the early stage of this bull market in PM’s and miners.

Something very interesting is happening at COMEX with physical deliveries. The total has reached 69,477 contracts for delivery and there’s still ten days to go. This guarantees that February 2025 will post an all-time record amount of gold “deliveries” via COMEX with an amount in excess of 210 metric tonnes. Stunning.

Much of the speculation centers around Trump and Treasury Secretary Bessent monetizing US gold reserves. From Bessent, last week: “Within the next 12 months, we’re going to monetize the asset side of the U.S. balance sheet. We’re going to put the assets to work.” Financial engineering, one of our 5 Big Bribe Megatrends is playing out here. This is a big, big story.

In Wednesday's VRA Letter to our Members, we wondered whether or not DOGE might be deployed to audit the gold at Fort Knox. President Trump did not disappoint, announcing this week that he has told DOGE/Musk to audit Fort Knox to ensure all the gold is officially accounted for. For more than 2 decades precious metals experts have doubted the reported gold holdings at Fort Knox. Because there’s been no government audit since 1974 (even that was audit was sketchy) and even as they claim that Fort Knox holds close to 5000 tons of gold, whistleblowers have reported that much of the gold is missing.

I have my own little Fort Knox story. Beginning in 2005, on stages around the world, I started discussing this topic and posing questions about Fort Knox gold at our WMI events. I wanted to know two things; why has there been no real audit and two, why can’t we use that gold to back the dollar (Nixon killed the gold standard in 1971). Following one of these speeches (approx 2009) I was approached by an attendee that I’d never met who told me he worked at Fort Knox and that yes, the gold was most certainly there.

When I started asking questions like; “have you seen all of the gold…has it been tested to ensure its gold and not gold-plated or tungsten…and what about these whistleblowers?”, the conversation changed. I’ll never forget his change in mood. He looked at me like he was staring through me and said “you really shouldn’t be talking about things that you know nothing about” in a way that absolutely felt like a threat.

After the conference I had our event staff look up his name and he wasn’t registered…there was no record of him (which was a requirement). From that moment on I’ve had even more serious doubts about the gold at Fort Knox. Maybe this played a role in JP Morgan Chase closing my 12 accounts (corp and personal), where we had banked for more than 15 years.

To President Trump and Elon Musk; next up, do a similar audit with paper gold ETF’s like GLD, which have potentially serious structural issues surrounding the ability to deliver actual gold instead of “paper” gold, via their use of derivatives and their policy on lending out gold. If the gold at Fort Knox has “issues” and if these gold ETF’s don’t own the stated amount of physical gold, this is how gold runs to $10,000/oz.

It’s time for a full accounting. This week gold hit another ATH of $2972/oz.

Finally for today, thanks again to my good friend Wayne Allyn Root for having me back on “The Root Reaction”.

A GOLDEN AGE FOR AMERICA

https://rumble.com/v6ne4zc-a-golden-age-for-america.html

Until next time, thanks again for reading…

Kip

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