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Long-term interest in gold has come out of the shadows, and the luster and allure are obvious with a move towards de-dollarization spreading around the globe.
But that's just part of what's driving gold higher.
If politicians in Washington do allow (or even seriously talk about) the U.S. Government defaulting on its debt, gold and gold miners will be some of the primary beneficiaries.
Consequently, since November 2022, SPDR Gold Trust (GLD) has gained 23.5% as investors have looked for ways to hedge inflation and rising interest rates.
Rather than targeting a single gold mining stock and taking on the risk associated with a single stock, I like VanEck Gold Miners ETF (GDX), which is an exchange-traded fund that seeks to replicate as closely as possible the price and yield performance of the NYSE Arca Gold Miners Index.
Because GDX holds a basket of 48 gold mining stocks, it has little single-company risk, but it still tracks the price momentum of gold miners, as a whole.
The top holdings in the portfolio include Newmont Corporation (NEM), Barrick Gold Corporation (GOLD), Franco-Nevada Corporation (FNV), Agnico Eagle Miners Ltd (AEM) and Wheaton Precious Metals Corporation (WPM) with weightings of 9.47%, 8.77%, 7.8%, 7.55% and 5.91%, respectively.
And the chart looks really good for a breakout.
Over the last year, the stock has experienced resistance twice, at approx. $33.00, once in June 2022 and then again in January 2023. And now, with gold miners catching a tailwind on surging gold prices, that same price (approx. $33.25) turned into support in late April 2023 and again last week.
I really like the technicals at this price!
I like buying-to-open the GDX June 23, 2023 $35/$36 Call Spread for $0.33 or less.
GDX closed as high as $35.87 on April 13, 2023, and at $35.69 on May 4, 2023, which is just below the $36.00 Call at the top of this spread. Any breakout to new highs should cause today's recommendation to be fully in-the-money for an easy 200% profit in just 39 days.
This is an easy, quick trade, but it doesn't scratch the surface of gold's potential right now.
There's a potentially historic commodities surge coming, and I know a veteran trader who's so confident about it that he's staked over $1 million of his own capital to bank on what's coming. He's identified three triggers that will precede this breakout and has prepared a full briefing on exactly how he intends to play it and where the biggest gains could be.
You can get all the details here...
The post Get in Quick on This Easy Gold Play with Triple-Digit Profit Potential appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.