By Andrey Dashkov, analyst, Casey Research
Gold’s taken a hit this year. So far in 2022, it’s down almost 2%.
At Casey Research, we always say that gold – or any asset – never goes up in a straight line. Some corrections are par for the course.
There will be more ups and downs along the way. That’s why we spill a lot of ink in these pages about ways to get leverage to the price of gold.
And by leverage, I mean a performance boost.
Gold miners are one of our favorite ways to do that. They tend to outperform gold in good times… and offer downside protection in bad times.
But there’s another little-known corner of the gold market I want to show you today… one that can deliver gains higher than gold stocks – without too much risk. In fact, even investors Richard Branson and Warren Buffett use this strategy.
This area of the gold market is flying under the radar of everyday investors.
But if you get in, you could be sitting on gains over 44%… after just one month. And the best part is, that’s chump change compared to some of the other gains available…
The Gold Strategy That Keeps Delivering
Take Gold Royalty, for example.
As the name implies, it’s a gold royalty company. It funds exploration on a property and collects a royalty on the gold mined and produced there.
It just went public on March 9, 2021. Within one month, its shares were up 21%. Not bad.
But something else happened…
Gold Royalty listed another security on the public markets that same day. You could have bought it just as easily as its regular shares, right from your brokerage account. And these investors are up 151% over the same period.
I’m talking about warrants. If you’re not familiar with them, don’t worry. Few investors know they exist.
Despite that, warrants are one of our favorite asset classes. They give you the right – but not the obligation – to buy a stock at a set price for a given period of time.
What’s more, warrants usually outperform company shares. And they’re cheaper to purchase.
Gold Royalty’s shares, for instance, trade at $3.12… while the warrants are just $0.42.
That means you can get access to all this upside – without added risk.
Keep in mind, I’m not recommending Gold Royalty’s shares or warrants today. I’m just using them as an example.
The point is, realizing a 151% return in under one month is quite an achievement. But my colleague John Pangere has nailed down a strategy for generating these returns consistently…
Supercharge Your Returns With Just $100
Take Sandstorm Gold. It’s also a gold royalty company.
At its peak in July 2020, the company’s stock was up 156% compared to its March 2020 lows… while gold was up just 27%.
That’s pretty good.
But readers of John’s Strategic Trader advisory didn’t have to settle for “pretty good” returns. They did much better than that with Sandstorm’s warrants. Over the same period, they were up 988%.
That would have turned a $100 investment… into over $1,000.
And, again, you don’t have to risk much with warrants. At its peak, Sandstorm shares were $14.09. Its warrants, on the other hand, were trading at just $8.70 – about 40% cheaper.
With warrants, you get exposure to all the upside… without betting the farm.
A Small Stake Makes a Huge Difference
I’m not just picking a couple of exceptional examples to put on your radar. John’s shown readers these kinds of gains consistently. In 2020 alone, Strategic Trader readers had a shot at gains like 664%… 2,805%… even 4,942%.
And just recently, Strategic Trader recorded a 5x gain in a little over a year.
That’s exactly why we like warrants. They have enormous potential. And just a small stake can make a huge difference for your financial future.
This powerful investment strategy has been kept hidden from everyday folks for far too long. And it might not stay a secret for much longer…
But in the next few weeks, we’ll be uncovering more about warrants, why they’re so significant, and the best ways to take advantage of them. So stay tuned if you’d like to bolster your investment portfolio…
Analyst, Casey Research