Dear Fellow Investor,
As I write, gold’s building momentum to the upside in today’s trading.
That’s not surprising news, since it’s been gaining steadily since the day after the Fed’s December 19 rate hike.
As you’ll remember, I wrote to my Gold Newsletter Alert subscribers in the moments after that rate hike, when the gold price was tanking, telling them not to panic. I told them that the metal could start its new rally as soon as the next day.
Gold soared $20 the very next day.
And in the days since, it’s stair-stepped its way higher. Like we saw during the first bout of market volatility in October, gold has risen when the stock market has been rising or falling, and when the dollar has been strong or weak.
In other words, investors are once again finding reasons to buy gold, as opposed to finding reasons to sell it.
Granted, much of the current buying is “safe haven” related, and you know I don’t like that.
For example, gold’s rise today (and the dollar’s weakness) has a lot to do with Apple’s surprise earnings warning late yesterday, the dollar/yen crash overnight and the latest dramatic sell-off in the U.S. stock market today.
But let’s also recognize the big back story to all of this: The expectations that the Fed’s rate-hike campaign has slowed down, or even ended. Fed futures show that most participants are now predicting zero rate hikes this year!
This is an amazing turn in sentiment from just a month or so ago...and is the kind of money-policy fuel that drives massive, secular bull markets in gold.
Of course, you’ll remember that we’ve been predicting this precise scenario for the past year. Now everything is playing out according to plan.
And more. Consider that Fed futures are now showing a 9.7% probability that the Fed will actually have to resort to easing at its March meeting!
That’s a bit early even for me to predict. But I do believe the Fed will, at some point, be forced to return to quantitative easing as the economy turns. We’re still barely above 5,000-year-lows on interest rates, and there’s just not enough room to cut rates for any significant economic effect.
So they’ll be forced back into QE. And more QE than ever before.
And well before that happens, you can bet that the market will sense it...and send gold hundreds of dollars higher.
Let’s take a look at how you can get positioned to profit...
(Golden Opportunities continues below...)
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Here’s What’s Going To Happen Next In Gold...And How You Can Profit From It
I predicted that gold would turn after the Fed meeting and gradually build momentum.
Now comes the second act — when the mainstream investors begin to take notice.
Even as I write this, the talking heads on CNBC are beginning the “buy gold” chorus. If the metal was trading near multi-year highs, I’d be worried.
But we’re far from that stage yet, and there’s much more to come on the economic front to provide support for far higher gold prices.
What we’re seeing right now is the big money starting to shift allocations into the yellow metal. It won’t take much of an allocation to send this relatively tiny market much higher.
One good sign has been the fact that the gold stocks and silver are moving more than gold itself. This kind of speculative leverage is a hallmark of a longer-term move in gold.
At this moment, for example, our Lundin Gold Strength indicator (the sum of the percentage moves in gold, silver and the Gold Bugs index of unhedged gold miners) stands at 2.81.
That’s a strong reading. And it’s rising at this moment.
So how do you position yourself?
Simply put, buy top-quality junior gold/silver companies with large, identified resources. These are usually the first to move during rallies such as this, and they can provide rich, quick gains early in the move.
As you’ll remember, in our big year-ending issue of Gold Newsletter a couple of weeks ago I unveiled my list of top stocks to take advantage of this move in gold and silver.
Here’s the good news: Those 13 stocks are up an average of 12.6% over the last two weeks. None are down from our recommended entry levels...one is up 35%...and another is up an amazing 58%.
In other words, the principle has been proven, but there’s still time to get in before the big moves.
If you’re a Gold Newsletter subscriber, congratulations. You’re already profiting from these recommendations.
If you’re not a subscriber, here’s a way to get a taste of what this invaluable service can provide...and get my list of the top stocks to profit from gold’s current move:
Take advantage of our single issue offer for just $20.
You’re fortunate in that buying a single issue right now gets you our massive, year-ending edition of Gold Newsletter.
This is usually the largest issue of the year, featuring not only my usual commentary on the markets and our portfolio of recommended junior mining stocks, but also detailed reports and excerpts from our recent New Orleans Investment Conference.
But this year we gave up all restraint and packed our year-ending edition with much more extensive coverage on the New Orleans Conference...a feature article on a rare opportunity in gold and silver-related options...and more detail on my market views.
The end result: 99 pages...a new record!
To get this special, year-ending issue of Gold Newsletter...
...With nearly 100 pages of prime investment intelligence from many of today’s top experts (including Robert Kiyosaki, James Grant, Jonah Goldberg, Mark Steyn, Peter Boockvar, Rick Rule, Ben Hunt, Peter Schiff, Doug Casey, Guy Adami, Mike Larson and even yours truly)...
...Just CLICK HERE and scroll to the bottom of the page to order a Gold Newsletter single issue for just $20..
It’s the best value in investing — and you won’t be disappointed.
Whatever you do, act now. Because gold is moving, and the next stage is going to be truly dramatic.
All the best,
Brien Lundin
Editor, Gold Newsletter
CEO, the New Orleans Investment Conference
CLICK HERE
To Get Our Special Edition Of Gold Newsletter — with our top stocks to profit from gold’s big move — for just $20.
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