Story Highlights
- Gold is in a bull market. The price of the precious metal is up by 15% since March 2019.
- Despite rising prices, investors are afraid of gold stocks right now.
- The dip creates a great opportunity to pocket gains of 200% or more.
- Gold is a safe investment that’s going up. Learn more about the 2019 Gold Rush today!
Back in March 2019, I wrote about the emerging bull market in gold. As I said back then:
Gold prices will keep rising. There are three main forces working to make that happen: a weaker dollar, global demand and inflation fears.
It turns out I was right. You can see the evidence in the gold chart below:
When I wrote that essay, the gold price was $1,307 per ounce. Today it’s $1,514 per ounce.
And I expect it to take a break before making another strong run.
That was the point of my original essay … no bull market goes straight up. And now it’s time for you to buy gold stocks.
GDX ETF Shows Investors Are Scared of Gold Stocks
As I pointed out, bull markets climb a wall of worry. They are born on pessimism and grow on skepticism.
They die on euphoria — and we are a long way from gold euphoria today.
In fact, one interesting thing that’s happening right now is investor flight from gold stocks.
Take a look at the chart below. It shows the share price of an exchange-traded fund (ETF) that holds mining companies such as Barrick Gold Corp. and Newmont Goldcorp: the VanEck Vectors Gold Miners ETF (NYSE: GDX).
The GDX ETF share price is shown in black. The brown line shows the share count. As you can see, they move in opposite directions:
The interesting thing about the GDX ETF is that it creates new shares when you buy it and eliminates shares when you sell it. That way, it makes sure that its shares always reflect the value of its holdings.
That means we can use the share count as a gauge of investor sentiment. And seeing the share count fall as the price shoots higher tells us that investors are afraid of gold stocks right now.
There’s our wall of worry and our lack of euphoria in a single chart.
We absolutely must own gold stocks right now.
If you bought shares of GDX back in March, congratulations! You are up 25% already. But don’t worry if you haven’t bought yet — you still can.
It’s Time for You to Join the Gold Rally
You see, I expect this rally to send GDX shares up hundreds of percent.
It’s currently around $29 per share. At the top of the last bull market in gold, it was nearly $70 per share. That’s another 140% or more from here.
And that’s just the whole group. There will be many companies that outperform the group by several times.
During the last big gold bull market, in 2009, my readers pocketed over 597% on a single trade!
This is your warning — do not wait. Buy gold stocks now.
Buy gold stocks if they fall a bit. You will thank me later.
In my Real Wealth Strategist newsletter, I keep a close eye on gold and other plays that offer massive opportunities. Right now, gold is surging. There’s another metal that’s going to do the same.
Learn more here, and join my readers for double- and triple-digit gains.
Good investing,
Matt Badiali
Editor, Real Wealth Strategist
P.S. MS64 Saint-Gaudens gold coins are one of the best ways for ordinary folks to own physical gold. If you’ve never bought any, now is a great time. These coins are trading at the lowest premium over gold in more than 20 years!
And that’s one reason I’m so excited about next week’s 2019 Gold Rush. You’ll get a chance to hear from my friend and legendary gold expert John Doody, whose recommendations have delivered audited returns of 530% since 2000 — beating the return of gold and the returns of major gold funds, as well as more than tripling the S&P 500.
I’ve followed John’s work for years. And he’s giving away the chance to win more than $25,000 worth of MS64 Saint-Gaudens to viewers who log in and recall his free recommendation during the 2019 Gold Rush, which starts at 8 p.m. Eastern on August 21.
I urge you to sign up now and tune in next week! The only way to hear about the No. 1 way to invest in gold today (including the name of one gold investment John believes is about to soar 500%) — and be entered in the gold coin sweepstakes — is by tuning in live. So mark your calendar now!