The profits can be outrageous, but the precious metals sector is a notoriously challenging place to invest smartly and profitably.
A big reason why: Sentiment has an outsized impact on prices. Gold is one of very few assets people actually want more of when it goes up in price.
So it makes good sense to own gold stocks in addition to any physical metal you've got stashed.
Trouble is, there's no shortage of choices… and price, future earnings potential, and quality are all over the map.
That's why gold exchange-traded funds (ETFs) are essential in your gold holdings. You get a great way to gain exposure to all sorts of gold companies while keeping downside risk to an absolute minimum.
Now, for years, gold ETFs were limited to bullion – "paper gold" backed by metal locked away in a vault somewhere – or the miners and junior miners involved in prospecting and extracting the stuff from the ground.
But… recently, one of the sharpest, wealthiest resource investors on the planet turned me on to a brand-new way to invest, easily, all in one fell swoop, in one of gold's most wildly profitable, well-managed segments.