Dear Reader,
The price of gold today is soaring...
You've surely seen the headlines these last few weeks and months about the rise in gold and precious metals prices...
OK, that last one was a joke.
But if you haven't been taking gold seriously, it might be time get on board.
Experts are predicting gold will hit at least $3,000 this year.
It's because of many factors — one, of course, being that inflation has eroded the purchasing power of the dollar.
There's a popular and easy-to-understand saying about why gold is a such a good place to put your money.
Gold bugs often say that an ounce of gold can buy a nice men's suit.
It's sometimes called the gold-to-suit ratio.
Today a very nice men's suit would cost roughly $2,000, the price of an ounce of gold today.
Back in the early 1900s, an ounce of gold cost roughly $20, which would've bought you a very nice men's suit at the time.
Biden's New Law Triggers a Lithium Frenzy
(This $5 Stock Could Explode)
President Biden has taken decisive steps to jump-start domestic lithium mining and production.
Under the Inflation Reduction Act, he's earmarked a massive $369 BILLION for EV and battery companies.
But to qualify for the full credit, vehicles must have at least 50% of their battery metals sourced from North America by 2024...
And this requirement DOUBLES to 100% by 2029.
As a result, automakers are scrambling to secure their lithium supply within the U.S.
This strategy not only aims to reduce U.S. reliance on Chinese lithium...
But it also turns a hidden American caldera into the center of a new lithium mining age...
Containing up to 120 megatons of lithium, not only does it dwarf all other known deposits worldwide by a substantial margin...
But it will also allow the U.S. to fulfill its future lithium demands and achieve complete energy independence.
And there's a little-known publicly traded company already leading this lithium-rich caldera.
This company exclusively owns a land area as large as Martha's Vineyard...
And it's estimated to contain 19 million tons of lithium...
That's worth a staggering $354 BILLION.
This amount is more than enough to meet the global demand for over a decade!
In just a few months, the company plans to start extracting 40,000 tons of lithium annually.
One that could easily support the production of 1 million EVs every year.
You can buy shares for just $5 right now — but not for long...
Click here for all the details before it's too late.
Now, there are obviously some qualms with this argument because you have no way of knowing the exact price or quality of a suit back then. And you can certainly buy a nice suit today for less than $2,000.
But it's one way of proving that gold holds its value over time relative to inflation.
My rule of thumb is no have roughly 10% of your portfolio in gold and silver.
Now, there are few ways you can do this, which I'll get to in a minute.
First, let's just briefly touch on the top five reasons gold and precious metals are a good buy.
- Diversification: Gold offers you a way to diversify your investment portfolio. It tends to have a low correlation with other assets such as stocks and bonds, so during times of economic uncertainty or market downturns, gold often acts as a safe-haven asset, providing stability to your overall portfolio. Keep in mind that gold is relatively volatile but trends up over longer periods of time.
- Hedge against inflation: We touched on this a bit already, but gold historically has served as a hedge against inflation. When the purchasing power of fiat currencies declines due to severe mismanagement from corrupt governments (what's happening today), the value of gold tends to rise. Therefore, holding gold can help preserve the real value of wealth over the long term.
- Store of value: Gold has been recognized as a store of value for centuries. Unlike paper currency, which can be devalued by governments or central banks through inflationary policies, like money printing, gold maintains its intrinsic value over time. This makes it a reliable asset for preserving wealth across generations. When you buy gold, you're really buying it for your future estate.
- Liquidity: Gold is highly liquid, meaning it can be easily bought or sold in various forms such as coins, bars, or exchange-traded funds (ETFs). The global gold market is deep and active, allowing investors to quickly convert their gold holdings into cash when needed, often without significant loss of value. The key here is to buy low and sell high!
- Geopolitical uncertainty: In times of geopolitical tensions or economic crises like we're facing now, investors often flock to gold as a safe-haven asset. Gold is considered a reliable store of value during turbulent times, as it is not subject to the political and economic risks associated with individual countries or fiat currencies. The same argument can be made with Bitcoin, but it's been leveraged to the U.S. markets recently and has lost its edge as a safe-haven asset.
Tiny Texas Firm's Revolutionary "Horseshoe Well"
Is Reshaping the Oil Industry
The United States is witnessing a surge in oil production driven by enhanced drilling efficiency, with output reaching a remarkable 13.1 million barrels per day.
This increase is primarily due to shale firms strategically focusing on the most lucrative well sites with a reduced number of rigs.
However, a new drilling method emerging from the heart of Texas' Permian Basin is set to dramatically surpass these advancements.
This revolutionary method has the potential to not only DOUBLE production output…
But also achieve a 50% reduction in drilling time and $10 million in savings compared with traditional methods.
This breakthrough is at the forefront of transforming domestic oil production and reshaping the global oil landscape.
Learn more about this little-known oil company here.
Buying and Selling
Let's touch on smart ways to buy and sell gold.
It can be easy to get caught up in the hype and just plop down your credit card and buy up gold at your local gold store.
But stores will often add tax for using a card, so make sure you buy in cash (this comes with the added benefit of staying anonymous).
Buy high-quality coins that are globally recognized in the gold market.
These include:
- American Gold Eagle: Issued by the United States Mint, the American Gold Eagle is one of the most widely recognized gold coins globally. It contains 91.67% pure gold and features iconic designs such as the Liberty design on the obverse and various depictions of American eagles on the reverse.
- Canadian Gold Maple Leaf: Produced by the Royal Canadian Mint, the Canadian Gold Maple Leaf is esteemed for its exceptional purity, containing 99.99% pure gold. It features the iconic maple leaf design on the reverse and Queen Elizabeth II on the obverse.
- South African Krugerrand: First minted in 1967, the South African Krugerrand was the world's first modern bullion coin. It contains 91.67% pure gold and features the portrait of Paul Kruger, the former president of the South African Republic, on the obverse, and a springbok antelope on the reverse.
- Austrian Philharmonic: Issued by the Austrian Mint, the Austrian Philharmonic is renowned for its elegant design featuring musical instruments from the Vienna Philharmonic Orchestra. It contains 99.99% pure gold. The obverse side of the coin displays the Great Organ of the Golden Hall in Vienna's Musikverein concert hall.
- Chinese Gold Panda: Produced by the China Mint, the Chinese Gold Panda is highly sought-after by collectors due to its annually changing reverse design featuring adorable pandas. It contains 99.9% pure gold.
Keep in mind you will always pay a premium for gold. You can limit the premiums you pay by buying ounces instead of one-quarter or one-tenth ounces. Not everyone has that kind of cash laying around, so tenth ounces are very popular and tend to sell out. And don't forget about silver as well.
Of course, the rule of thumb is to buy low and sell high!
If you don't feel like shelling out your hard-earned cash for solid coins, then gold mining stocks or precious metals ETFs might be right for you.
For our top three gold stock picks, check out our recent YouTube video!
Stay frosty,
Alexander Boulden
Editor, Wealth Daily
Check us out on YouTube!
After Alexander's passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.
Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.
Check out his editor's page here.
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