DAILY ISSUE Hello, Reader. When Johnny Cade told Ponyboy to “stay gold” in S.E. Hinton’s novel The Outsiders, Johnny meant it as a reminder to hold on to goodness in the face of adversity. (Ralph Macchio said it to C. Thomas Howell in the 1983 movie.) But when it comes to physical gold, adversity is exactly what the mystical metal thrives on. In fact, gold loves everything most ordinary investors despise: crisis, volatility, and, especially, economic uncertainty. We saw this dynamic play out this very week. It all started last weekend, when President Donald Trump announced plans to implement 25% tariffs on most Canadian and Mexican imports, as well as 10% on Chinese goods. Markets tumbled on the news and continued falling when trading resumed on Monday. While Trump later suspended the Canadian and Mexican tariffs for 30 days, the added China tariff took effect on Tuesday. Then, China swiftly responded with targeted tariffs and restrictions on mineral exports to the United States. Through the uncertainty, gold prices climbed to an all-time high this week, reaching a peak of $2,910.60 per ounce yesterday. This is an impressive 43% increase from a year ago. So, Trump’s escalating trade war is creating precisely the type of global financial turbulence that transforms gold from a dust-collecting asset to an investor’s sanctuary. And with each new whiplash-inducing headline, the markets could continue to grow more unpredictable. This will, of course, lead investors scrambling for security. In today’s Smart Money, I’ll explain why gold offers such a security in the face of uncertainty or market volatility. And while many investors may rush to buy physical gold or gold stocks, there is a more powerful way to capitalize on this golden opportunity – one that multiplies your returns. So, I’ll also share a trading strategy that I use to maximize gains in the gold market… and how you can use it, too. Recommended Link | | If you haven’t seen The Great American Crypto Project event, you still have time. This quant-based algorithm is designed to identify a predictable pattern where cryptos could soar 10X, 50X even 100X in 90 days or less. In-house crypto expert Luke Lango is predicting that President Trump is poised to issue 3 specific crypto policies during his first 100 days in office… igniting a crypto super cycle. And Luke just revealed the details on 3 coins he found with his proprietary algo that could soar in the coming weeks. Watch now. | | | Pressure Makes Diamonds Gold Now, sure, gold is a shiny rock that produces nothing. Even the legendary Warren Buffett shares this sentiment. As he’s said, “Gold has two significant shortcomings, being neither of much use nor procreative.” But here’s what Buffett missed: This “lifeless” asset often springs to life during times of chaos and uncertainty – exactly like we’re experiencing now. Although gold may be an asset that “will never produce anything,” that doesn’t mean it will never produce a profit for investors. What makes gold especially powerful in the midst of volatility is its unique combination of scarcity and resilience. Unlike currencies that can be devalued by trade wars and tariffs, gold’s inherent scarcity makes it immune to political maneuvering. This same quality gives timeless investments like beachfront properties and limited-production luxury automobiles their lasting worth. Gold’s valuation could likely continue to rise as both immediate pressures (tariffs) and long-term fundamentals (scarcity) work in its favor. Several other catalysts support the precious metal’s longer-term outlook… - Falling Interest Rates: The gold price almost always rises when interest rates trend lower. Most recently, the gold price rocketed higher from 2001 to 2011, when the Fed was systematically suppressing rates. Then again, the gold price soared during the pandemic when the Fed was holding rates close to zero.
- Weakening Dollar: Because interest rates are falling, the dollar exchange rate might also drift lower. A weak dollar usually manifests itself as a strong gold price.
- Rising Geopolitical Tensions: Almost nothing benefits from geopolitical tension or wars other than weapons manufacturers… and gold. Hopefully, the current tensions around the world moderate throughout the year. But the mere possibility of growing instability could support a strong gold price.
- Central Bank Buying: On a net basis, the world’s central banks have become large, consistent gold buyers. In 2022, they bought more than 1,000 metric tonnes – equal to more than one-quarter of the world’s annual gold production. Central bank buying, by itself, will not trigger a major gold rally. But that buying could help power a rising price trend.
Now, I do not recommend “loading the boat” with precious metals. But I do recommend buying them as a hedge against potential dollar weakness or other unforeseen financial trauma. In other words, I recommend buying scarcity, at least as a hedge. In fact, select gold mining stocks could produce handsome results this year. For instance, SPDR Gold Shares (GLD), the first U.S.-traded gold ETF, is up 2% this week and nearly 8% in 2025. And if you bought GLD one year ago, you’d have made a sizable 40%. But would you believe me if I told you that I made my Leverage subscribers nearly six times that amount in a little over half the time? Here’s how I did it… A Powerful Investment Strategy I used Long-Term Equity Anticipation Securities (LEAPS), which are long-dated options contracts with expiration dates one to three years away. (Options may sound scary, but they don’t have to be. You can learn more about trading options in my free special broadcast, here.) Although LEAPS are long-term options, you don’t need to hold them until expiration. I’ve recommended closing out many of my best trades after just a month or two, delivering substantial gains while minimizing risk. That brings me back to gold. Every option is identified with a specific stock. And I recommended a LEAPS option on GLD to my Leverage subscribers on March 21, 2024. The call had an expiration date of June 20, 2025. Since then, we sold… - A one-fourth position on April 18, 2024, for a 379% gain…
- A one-fourth position on September 19, 2024, for a 94% gain…
- A one-fourth position on September 20, 2024, for a 110% gain…
- And the final one-fourth position on October 18, 2024, for a 292% gain.
Overall, those who followed my LEAPS strategy in Leverage pocketed a whopping 220% gain on this SPDR Gold Shares call. Now, this strategy works beyond opportunities the gold industry. In fact, my members are currently holding LEAPS calls on a coffee company that we just took over 160% partial gains in just yesterday. To learn more about this strategy, I’ve created a special presentation that explains how anyone can take advantage of LEAPS. In the broadcast, you’ll also learn how to access a special report that lays out three LEAPS trades with the potential to double your money in just a few months. Click here to learn how to join Leverage and take advantage of this powerful options strategy. Regards, |
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