3 Ways to Lock in Explosive Wealth from Gold
Yesterday, I told you why gold is such a great opportunity.
(If you missed the article, make sure you take a look here.)
In short, through a series of connected relationships, I explained how the trade war with China ripples all the way through our financial markets and causes the price of gold to rise.
Consider this just like the butterfly effect, which according to chaos theory connects the flap of a butterfly’s wings to a typhoon half a world away.
Today, I’d like to take my analysis one step further with three specific ways to play gold’s impending rise.
Let’s get to it!
3 Ways to Play Gold’s Impending Rise
It’s always a great idea to have exposure to gold.
That’s because the midas metal is a great way to protect your wealth against inflation, it’s a great tool to diversify your holdings, and it performs well during uncertain times.
That last point is why I’m looking toward gold even more so right now. With all this uncertainty surrounding trade, now is an ideal time to increase your exposure.
And I’ve got 3 ways to accomplish this…
Gold Investment #1: Physical Gold — This is the truest way to invest in gold, as it provides you with a solid, tangible asset that can protect your wealth when times get tough.
Some of the best benefits of holding physical gold include the metal’s liquidity and portability, meaning that you can carry it around in your pocket, and virtually any dealer in the world will recognize its value and buy it from you.
In addition, physical gold is a time-tested store of wealth. Not once in its 3,000+ year history has the value of gold fallen to zero. That’s a powerful attribute in the wake of previous market pullbacks where many companies have gone out of business.
We here at St. Paul Research have a working relationship with the Hard Asset Alliance — a trusted dealer that helps our readers safely invest in physical gold. For more information on how you can increase your physical gold exposure, click here.
Gold Investment #2: Financial Gold Exposure — This method entails investing directly in the price of gold through securities on Wall Street.
If you believe (as I do) that the financial system will remain intact, this is a great way to profit from a rise in gold.
SPDR Gold Shares (GLD) is my favorite ETF to increase gold exposure. This trades just like a stock and rises and falls in proportion to the rise and fall in actual gold prices.
If you’re comfortable trading futures contracts, you could also buy contracts on gold. This is a great way to turbo-charge your exposure to gold without having to put up too much capital up front. Just make sure you’re careful with how much risk you take.
Both futures and gold ETFs let you profit from a rise in gold prices, without having to store physical gold in your own safe or someone else’s.
Gold Investment #3: Gold Mining Stocks — The last method I recommend to gain exposure to gold involves investing in the companies that pull it out of the ground.
Gold miners will do very well with gold prices rising. And in some cases, a small change in the price of gold can lead to a BIG move for a gold mining stock.
For example, if it costs $1,300 to mine an ounce of gold — which is sold for $1,325 — that’s a $25 profit.
But a 10% rise in the price of gold would put gold at $1,457.50. And if it still costs the miner just $1,300 to produce an ounce, that would result in a profit of $157.50 per ounce — more than a 500% increase in profit!
As you can see, gold is no longer just a long-term hedge against risk. Right now it’s an opportunity to seriously grow your wealth.
And as the butterfly effect works its way through our financial markets, I expect all three of these investments to quickly move higher.
Stick with The Daily Edge as I continue to track specific stocks that will benefit from gold’s momentum, and be sure to secure your investments before prices rise any higher.
Here’s to growing and protecting your wealth!