“Turbo-Charged” Profits from Gold… Plus, 5 Must Knows for Monday, June 17th
Today we have an excellent opportunity to capture fast gains in the market.
And I’m not talking about chip stocks, biotech companies, or popular social media opportunities…
I’m talking about a turbo-charged play on fear itself — and a play that could hand you a big profit in short order.
Read on below for the details.
To Preserve Wealth… or Chase Big Gains?
When markets get crazy, investors naturally divide into two different camps.
There are the aggressive traders who jump in and buy when stocks are low and look to lock in their profits when markets rally sharply…
And then there are the people who want to hunker down and preserve their wealth. These are the investors that are afraid of the wild gyrations and want no part of the risk associated with big swings.
Gold is a natural place for these investors to park their wealth, because over time gold has kept pretty much the same purchasing power.
It’s said that 100 years ago, an ounce of gold could buy a high-quality men’s suit. And with a price around $1,350 per ounce today, gold still has that purchasing power.
In other words, gold helps to protect investors from volatile markets and from inflation. Perfect for uncertain times like these.
That’s why we’ve seen a steady ramp in the price of gold even when the stock market was taking on losses. And that trend will continue into the end of 2019 as investors move more money to safety.
Buying gold is a great long-term way to protect your wealth.
But if you want a high-energy way to make some big short-term gains from this trend, here’s what to do…
Adding Firepower to the Bullish Gold Trend
As I‘ve mentioned in the past, one of the best ways to profit from a rising price of gold is to own shares of some of the more speculative gold miners.
In many cases, a gold price under $1,300 per ounce can leave these “junior” gold miners in rough shape. When you add up the labor, equipment, and processing costs to mine gold, these companies are barely able to turn a profit.
But with gold rallying near $1,350 per ounce — and potentially all the way to the 2011 high near $2,000 per ounce — these junior gold miners will become wildly profitable.
And as the profits start rolling in, these stocks could easily hand you returns of 100%, 200%, or even more in gains.
That’s why I’m recommending you buy shares of the VanEck Vectors Junior Gold Miners ETF (GDXJ) fund. This is an exchange-traded fund that trades just like a stock, but gives you exposure to dozens of these small gold miners.
Now, although the price of GDXJ has moved steadily higher over the last few weeks, this is still a very good trade. And one I’d be willing to pay a higher price for.
But I’d urge you to jump on this trend quickly before it moves any higher. This way, you’ll be in position to capture the biggest turbo-charged gains from gold’s advance.
5 “Must Knows” for Monday, June 17th
All Eyes on the Fed — On Tuesday and Wednesday, the Federal Reserve will meet to discuss changes to their current interest rate policy. As of now, traders are pricing in a 23% chance of a rate cut. However by July, the odds skyrocket to an 88% chance of a cut. Weighing on their decision is the never-ending trade war with China and the recent batch of weak economic data.
Earnings on Deck — This week, there are a few notable companies reporting earnings. Look out for Adobe, Jabil and La-Z-Boy on Tuesday. Look out for Oracle, Winnebago, and American Outdoor Brands on Wednesday. And look out for Kroger, Darden, Canopy Growth and Redhat on Thursday.
Merger Monday Strikes Again — Recently I’ve talked a lot about buyout deals — where one company acquires another company at usually a substantial premium to where shares previously traded. Today, another batch of companies just minted millionaires. Pfizer announced it’s acquiring Array BioPharma and Sotheby’s announced they would be taken private by Patrick Drahi. Both stocks were up 60% pre-market.
Boeing Suffers — The Paris Airshow started this morning in France. It’s an annual event notorious for big announcements from the world’s largest airplane manufacturers. However, this year, Boeing says it doesn’t have a new product to debut as it focuses on fixing the 737 MAX. Airbus, however, announced a new 100 plane contract with Air Lease Corp., which marks its biggest win over Boeing since the two fatal plane crashes.
Bitcoin — Don’t look now, but the price of Bitcoin is back above $9,000. That’s up more than 22% in the last 30 days and 142% on the year. However, before you get caught in the hype, remember to only invest money that you can afford to lose in these volatile cryptocurrencies as the risk of hacks and manipulation is still high.
Here’s to growing and protecting your wealth!