By Chris Reilly, managing editor, Casey Daily Dispatch
One of our core recommendations here at Casey Research has been on an absolute tear.
I’m talking about the ultimate “safe haven” asset – physical gold.
It’s up 17% over the last three months… 2% today alone… and more importantly, it just crossed $1,500 an ounce for the first time since April 2013.
• If “$1,500 gold” sounds familiar, it should…
Back in December, Strategic Investor editor E.B. Tucker went on record saying gold would hit $1,500 an ounce in 2019. Gold was sitting at just $1,237 at the time… down 35% from its 2011 peak.
To most people, it seemed like a wild prediction.
But E.B. saw this move coming a mile away…
Here’s what he told us back in December:
We’ve seen three very big moves in the price of gold in the 21st century. That’s one roughly every six years.
We’re about due for the next one… and it’s likely to be the biggest yet.
In fact, next year, I believe the price of gold will hit $1,500 an ounce.
It will be one of the best-performing markets in a very volatile year for equities.
You may be wondering, “How did he know?”
• E.B.’s a true gold expert…
Before working in the newsletter business, he co-managed a precious metals equity investment fund. Today, he serves on the board of a successful gold company.
In short, he has deep connections in the gold business. He sees what’s really going on behind the scenes… before the mainstream media catches on.
I work closely with E.B. He didn’t just throw this number out of thin air. It was a calculated bet.
And he didn’t just “talk the talk.”
He’s been setting his readers up for big profits. One of his gold picks is up 19% over the past week. Another is up 34% over the past month. A third skyrocketed 16% today… and is now up more than 130% since E.B. first recommended it.
These are incredible gains. But don’t worry if you missed out on his first big call…
You now have a second chance.
• E.B. says this is just the beginning…
It’s the early stages of what he’s calling the “motherlode of all gold rallies.”
He says gold’s finally coming out of a period of consolidation. And that means big things ahead. Here’s E.B.:
If you look at a longer-term chart of gold, it hit a high in 2011 of around $1,920, and then it went down until 2013. Since then, it’s stalled out… gone nowhere. And when something goes nowhere for six years, it’s very important to watch that.
Especially when, at the same time, we’ve had radical central bank experiments going on with our money… one of the most confusing stock market rallies of all time… and out-of-control government spending.
My point is this: Gold went nowhere during that process. Now that it just struck $1,500, that’s a huge indicator for us. It means it will go to a much higher price.
That period of consolidation – that six years of going nowhere – was a time of building pressure.
For six years, gold has been building energy, stuck in the pressure cooker. And now the lid’s about to come off. And it’s going to blow through the kitchen ceiling.
Not only that… but E.B. says this rally will be different than anything we’ve seen in recent memory.
He’s been looking at how specific types of gold stocks are performing. And what he found is very telling…
Since the first of June, the fund for large-cap gold companies [GDX] is up 31%.
The fund for smaller gold companies [GDXJ] is up only 35%.
Now, typically those smaller companies are up double the big companies. Because that’s where people speculate, thinking they’ll have a bigger run. And the bigger companies aren’t as exciting.
This rally that’s happening right now is in the big, serious companies.
It’s in physical gold, and it’s in the multibillion-dollar names. It’s very abnormal. Very different.
The established companies are strong. And this also tells us it’s the early stages of serious money coming in to bet on gold. Serious money isn’t looking for a 50-cent stock on the hunt for a gold deposit in a far-off place. It wants stable companies that make money. And that’s what we see happening right now.
• So what should you do to take advantage of the coming boom?
First and foremost, you should own some physical gold. We always recommend owning physical gold first, especially during volatile times like we’re seeing today.
On Monday, the S&P 500 fell 3%. The Nasdaq fared even worse, dropping 3.5%. It was the worst day for U.S. stocks this year.
If stocks continue to fall, investors will pile into gold like they’ve done many times before.
That’s because gold is a tangible asset that you can hold in your hand. It’s real money, a safe-haven asset, and a way to protect your wealth. It’s survived every financial crisis and will continue to do so.
To learn more about gold and the best ways to add some to your portfolio today, check out our free report, “The Gold Investor’s Guide.”
• Next, you can speculate on gold stocks…
As longtime readers know, gold stocks offer “leverage” to the gold price.
In other words, when gold moves an inch, gold stocks can move a mile. (For more on the power of leverage, make sure to read E.B.’s essay here.) Gold stocks give you a real shot at multiplying your money in a gold bull market.
Just remember, gold stocks are extremely volatile.
Like in any industry, the stocks of stronger companies will go up more than those of the weaker ones.
But the easiest way to gain exposure to the major names is through shares of VanEck Vectors Gold Miners ETF (GDX). It’s a great, one-click way to get started, and it’s easy to trade.
As always, never bet more money than you can afford to lose. It only takes a small stake in the right companies to make a fortune as gold prices rise.
Managing Editor, Casey Daily Dispatch
P.S. E.B. has three gold stocks set to soar in his Strategic Investor portfolio.
And now’s the time to strike… while they’re all still under his buy-up-to prices.
Again, if you missed out on the first phase of this boom, this is your second chance.
You can access these gold names today with a subscription to Strategic Investor. Go here today to stake your claim in this explosive rally… before it’s too late.