Imagine you have opened a new garden centre ....13 Oct 2025 09:54
Stick with me...
And you've been nurturing plants through their early growth from seed.
You've worked out the maths and it means selling the plants at a market price (what people will pay) and in the beginning you're in debt to the bank.
Over time you use the seeds of the plants you've grown to grow more plants because the market demand is robust.
Then, one day, a customer comes into your garden centre and says I'll give you 10% above asking price for your plant. Then another comes in and does the same. Then they all do it and you alter the price to meet the demand. Suddenly you're making double your profit (10% margin + 10% increase in price). Your profit is now 20% (100% increase). You carry on and your costs and output remains the same (no additional costs to produce).
Then the next week someone comes in and says they'll give you 20% above the new price for a plant. Then another person does the same, and so on. Your costs to produce stay the same but now your profit is 320% higher than it was.
You're starting to feel like you've landed on your feet.
Then something amazing happens, someone comes in and offers you 50% more than the new asking price. And everyone who follows asks the same. You are now making 980% profit.
If your original price was £10, it is now £19.80. The product has doubled in price.
But let's assume inflation has been a killer and costs to produce have risen 25%. This would ultimately reduce your profit to a meagre 755%.
One day you open your door and there's suits standing in your doorway. It's B&Q, Dobbies, Homebase, Tesco, Walmart and Home Depot. They all want to buy your business because they heard you grew plants when there aren't many plant growers left.
Now imagine you're a gold producer and what I just described is exactly what is happening with gold. The growth in profit is literally off the scale. There is nothing on the planet with this level of growth, it's greater than any tech stock.
All you have to do is wait for everyone to catch on.
Hold. The. Goddam. Line
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