Gold has been hitting new all-time highs almost daily this year.

Last year it was on a tear too.

And, I have been telling my readers in all our services to get exposure to gold.

The message is no different right now.

I have two ways for you get exposure to the metal – one is a short-term play and the other is a longer-term play. But first, let’s examine why you should get exposure.

People invest in gold (and silver to some extent) for several reasons:

1. Store of Value: Gold has been seen as a reliable store of value for centuries. It tends to hold its worth over time, making it a hedge against inflation and economic uncertainty.
2. Safe Haven: During times of economic instability or geopolitical tension, investors often flock to gold as a safe haven asset, as it is perceived to be less volatile than other investments like stocks or currencies.
3. Diversification: Gold is often used to diversify investment portfolios. Its price movements are typically not strongly correlated with those of stocks or bonds, so holding gold can reduce overall portfolio risk.
4. Inflation Hedge: Gold is often viewed as a hedge against inflation. When the value of currency decreases due to inflation, the price of gold often rises, preserving purchasing power.
5. Global Demand: Gold has universal value and demand. It’s used not only for investment purposes but also in jewelry, technology, and central bank reserves, which supports its market liquidity.
6. Historical Significance: Throughout history, gold has been considered valuable and has maintained its allure. This historical significance adds to its appeal as an investment.

Overall, people invest in gold for its perceived stability, diversification benefits, and historical track record as a store of wealth.

Right now, all those factors above are ticking a strong YES!

And, you should add exposure now. The short-term play is to buy options on GDX, the ETF that holds mining stocks. If gold goes higher, these stocks should follow and outperform the rise in the metal. The options give you leverage at a lower price and less dollars at risk.

YOUR ACTION PLAN

The second way is through a gold royalty company. These companies make investments in gold miners by providing capital for them for use in developing mines. In return they get a royalty on every ounce produced.

The premier company in the royalty space is Franco Nevada (FNV) and you should buy shares now and add on any pullbacks.

To find out how to invest in gold… click here.