Columbus Was a Trash Human

But You Can Invest in the Commodity He Coveted

History is taught by the victors, and that’s not always a terrible thing when the good guys win. 

For example, there’s a large swath of Americans who could benefit from revisiting lessons about the Allies’ victory in WWII over the fascist Axis powers given the resurgence of ethno-nationalism and populism in the U.S. over the past two decades. Disaffected as some demographics may be, we’re fairly certain that aligning with prominent Nazi ideologies isn’t a great look. Not in 1939, not in 2024.  

The problem with history being taught by the victors arises when events are shaped by biased interpretations that take root for years, decades or centuries without being challenged by accurate representations.   

So today, as we’re apt to do, we’re taking lemons and giving you lemonade. Because whitewashing history — or deliberately attempting to conceal unpleasant or incriminating facts about someone or something — is the kind of bullsh*t we love dismantling here at Rise & Hedge. 

And if we can do that with a twist that benefits our readers’ personal finances, all the better. 

Columbus Was a Trash Human

This may offend some people, but that’s never stopped us before. Columbus wasn’t a hero. He didn’t “discover” the New World. And he certainly wasn’t worthy of a federal holiday when you examine his track record. 

Foremost, he’s responsible for establishing the Atlantic slave trade. But rather than importing Africans to the Americas, in 1495, Columbus sent roughly 550 enslaved Arawak people off to Europe (200 died on the journey) setting in motion the slave trade that plagued the Western Hemisphere into the late 19th century. 

Don’t believe us? Here’s Columbus, in his own words, upon first encountering the natives of Hispaniola: 

“They were well built, with good bodies and handsome features. They do not bear arms, and do not know them, for I showed them a sword, they took it by the edge and cut themselves out of ignorance. They have no iron. Their spears are made of cane. They would make fine servants. With fifty men we could subjugate them all and make them do whatever we want.”

Another 600 Arwak were enslaved for the use of Spaniards who remained on the island. He also gifted his crew native women for raping, ordered the genocide of the Arkwak and Carib and — pertinent to today’s issue — stole their gold to satisfy the crown.  

The man never deserved his holiday, and those who complain about it being replaced with Indigenous People’s Day are woefully unaware of the suffering inflicted upon native communities by Columbus and the subsequent waves of colonizers and conquistadors who repeated his actions throughout South and North America over the ensuing centuries. 

The Silver Gold Lining

A silver lining this is not. Silver linings imply positive takeaways, of which historical atrocities do not lend themselves to. Instead, we’ll focus on the gold lining of Columbus’ crimes against humanity.

Between 1500 and 1650, Spain brought back 181 tons of gold from the lands Columbus claimed. In today’s money, that would be worth over $14 billion (or roughly as much money as Jeff Bezos makes every time he farts). 

That’s because gold recently hit its all-time high and is currently trading for $2,656.50/troy ounce:

However, we’re not advocates of investing in physical precious metals. First, they don’t produce yield. Second, they’re not as liquid as other assets.  

But there’s a way to invest in gold that investors looking for well-balanced portfolios can use to diversify their holdings. 

Today, gold isn’t stolen from the necks of indigenous people. Reputable companies mine it, and they do so without slave labor. 

But before diving into the two stocks and one ETF that could produce strong returns over the medium and long term, it’s imperative to first understand why conditions are ripe for gold. 

A Golden Opportunity

Historically, gold prices rise as interest rates fall. And in case you’ve been living under a rock, rates are falling … and gold is rising. 

In September, the Federal Reserve enacted its first cut to the effective federal funds rate since 2020. That’s because despite what the gasbags in mainstream media are trying to indoctrinate you with, inflation has fallen precipitously over the past several years and is currently lower than it was in January 202 before the arrival of the pandemic: 

Meanwhile, Q2 GDP blew past analysts’ expectations and the job reports continue to show ongoing strength:

Translation: The economy is healthy. It may be having outsized negative impacts on lower-income households, but on the whole, the U.S. economy remains strong. 

So the Fed cut rates. And it’s going to again at least once more this year, and possibly during its first FOMC meeting in 2025.  

But even if you don’t believe the writing on the wall, you might be in the camp that expects the world’s imminent collapse in the wake of the presidential election and ongoing conflicts in the Middle East and Ukraine. 

In that case, gold is still your friend because it serves as a safe-haven asset during periods of global upheaval.  

So between interest rates falling and geopolitical unrest, gold is looking very attractive even as it sits just off of its all-time high. 

How to Invest

Back to gold miners. Some of these companies provide the best of commodities and equities — that is, exposure to precious metals combined with yield. 

Newmont (NEM) is the world’s largest producer of gold. Incorporated in 1921, it has a market cap of $62.20 billion and its stock has returned over 32% this year — 10% more than the S&P 500’s gain in 2024. 

The stock yields 1.85% and Newmont has soundly beaten earnings and revenue expectations each quarter since Q4 2023. On a trailing 12-month basis, the company is showing free cash flow of $1 billion and net earnings (a.k.a. bottom line profit) of $1.66 billion. 

At $35.02 billion, Barrick Gold (GOLD) is the world’s second-largest gold miner. Its stock is up 11.77% this year, but it’s gained over 42% since its year-to-date (YTD) low on Feb. 14. 

Its dividend yields 1.99% and Barrick saw an earnings per share (EPS) increase of 200% from 2022 to 2023. Year over year from the end of Q2, the company’s EPS increased 23.53%. 

If you’re more of an ETF investor, the Sprott Gold Miners ETF (SGDM) is up 26.65% in 2024 (outperforming the S&P 500) and pays a dividend yielding 1.15%. 

Here’s a YTD chart of each, with Newmont in blue, Barrick Gold in red and the Sprott Gold Miners ETF in green:

If you remember two things from this week’s issue, we hope it’s:

1. That Columbus was a genocidal slave runner and a proper piece of sh*t. 
2. Gold is poised to continue its bullish run as the Fed eyes more rate cuts and global conflicts persist.