Story Highlights
- Gold is in a bull market, but it’s not too late to buy gold stocks — yet.
- In the 2009 to 2011 bull market, gold stocks’ share prices doubled.
- This bull market will be larger than the one in 2009.
- Here’s a lucrative way get in on the next gold rush.
You must own gold stocks … right now.
The gold bull market is on, and gold stocks are moving higher. But don’t worry. You haven’t missed anything — yet.
Wait another month or two, and you might.
You see, as the gold price stays around $1,500 per ounce, gold miners are raking in profits. And the world will see the results shortly. Companies will release third-quarter data in September.
Once the market gets clued in, stocks will rise much faster.
Read on to learn what this means for you, and how you can profit from gold’s rally.
History Shows GDX Shares Will Skyrocket
The stock market hasn’t priced in gold miners’ earnings.
The VanEck Vectors Gold Miners exchange-traded fund (NYSE: GDX) holds gold miners such as Newmont Goldcorp Corp., Barrick Gold Corp. and Newcrest Mining Ltd.
And when we look at the price chart of GDX, we should be excited:
You Haven’t Missed the Gold Uptrend … Yet
As you can see, GDX’s share price is on a tear since June. However, too many investors see that uptrend and think they missed the move.
Let me be clear: You haven’t missed anything yet.
During the last bull market, shares of GDX peaked around $65 per share. That’s more than double where they are today. And there are plenty of reasons to believe that this bull market will be larger than the one from 2009 to 2011.
As I told you back on August 5, the most important reason is that gold is a measure of confidence in the U.S. dollar.
When the market feels confident about the dollar, gold falls. When there is less confidence in the greenback, the gold price rises as investors run to the safe-haven investment.
And right now, the dollar is in for a rough patch.
Trade War Uncertainty Weakens Confidence in the U.S. Dollar
The trade war between the U.S. and China expanded dramatically. The White House recently warned U.S. companies to pull out of China. That’s a huge escalation between two of the world’s largest economies.
The uncertainty undermines the world’s confidence in the U.S. dollar. That’s why governments around the world are dumping dollars to buy gold.
According to Bloomberg, government banks from countries around the world now account for 10% of all demand for gold.
Goldman Sachs’ global head of commodities research told Bloomberg Television: “Central banks in emerging markets are buying gold…because they don’t want to own dollars with sanction risk, geopolitical risk, trade-war risk out there.”
As this trend continues, I expect to see the gold price go beyond its peak from 2011.
That’s why we must own gold stocks now.
In my Real Wealth Strategist newsletter, I watch companies in this industry. And I just recommended a basket of gold miners that pays a huge dividend in the September newsletter.
It’s trading well under my buy-up-to-price. Click here to learn more about how you can join us.
Good investing,
Matt Badiali
Editor, Real Wealth Strategist
