How to Lock In Winners Within the Gold Sector
It seems like a lifetime ago, but last July I began telling War Room members to take positions in gold stocks.
Since then, members have been in and out of Barrick Gold, Newmont, Sandstorm Gold, Americas Gold and Silver, Osisko Gold Royalties and Equinox Gold, including some “off balance sheet” plays like Yamana Gold, Sibanye-Stillwater and EMX Royalty Corp.
Members have been locking in winner after winner, and just between last Friday and today they have taken two more winners and have two more positions that will result in even more gains.
On Friday members closed out our most recent trade recommendation on Barrick Gold (NYSE: GOLD) for profits of more than 70%. They did it with a spread trade using Long-Term Equity Anticipation Securities (LEAPS) options expiring in 2022.
There was no need to wait for another 14 months, as the price of gold has been screaming. The metal alone is up almost 50% since I first recommended it to members.
In The War Room, we recommend both short- and long-term positions. Bryan handles the short stuff, and he’s been banging out profits left and right even in this crazy market. And he’s put out some timely calls on gold as well using the leveraged Direxion Daily Gold Miners Index Bull 2X Shares ETF (NYSE: NUGT) to rack in profits for members.
Gold is on a bull run right now. And while it will pull back now and again, I believe the trend will stay intact for some time to come. Why? Well, for these three reasons…
First, the Federal Reserve is printing trillions of dollars. More than $6 trillion new dollars have been printed since the beginning of March. That new money printed out of thin air will increase the cost of living for everyone at some point. You can’t increase supply by that much and expect the U.S. dollar to retain its purchasing power.
If you want evidence of how inflation causes a decrease in purchasing power when you are printing money, just look back to 1970, when you could buy a three-bedroom home in a nice community for $30,000 and a fully loaded Mustang for $5,000. Today those would cost 10 times more.
The second reason is fear and the need for a “safe haven” investment. Gold has always proved to be that type of investment – safety is a big destination for a lot of money today.
The third and final reason is supply and demand. Right now, gold production at mints that make coins and bars is shut down. That means there is less gold on the market, which increases the price.
Action Plan: The move in gold prices is not over, and Bryan and I have more picks in the portfolio and in the pipeline.
It’s only here, in The War Room, that you will get full coverage of every sector of the market in real time – when you can react immediately! What are you waiting for? Join me in The War Room today!
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