Get Ready for the Biggest Gold Move in Years
Get Ready for the Biggest Gold Move in Years by Justin Spittler – Casey Research
Make the trend your friend.
Every investor has heard this advice. It means that you should swim with the tide, not against it.
In other words, don’t buy stocks that are in free fall. And don’t bet against stocks that are soaring. After all, a trend in motion tends to stay in motion.
With that said, bull markets don’t last forever. The same goes for bear markets.
This is important because you can make an absolute fortune by buying an asset as it exits a bear market and enters a new bull market.
One of the safest and most proven ways to do this is to buy an asset right after it “breaks out” of a downtrend.
Just look at what uranium stocks did when they broke out of a multi-year downtrend in December.
The Global X Uranium ETF (URA), which holds 22 uranium stocks, jumped 45% over the next couple months.
Here’s another example.
This chart shows the performance of the VanEck Vectors Coal ETF (KOL) since the start of 2011. KOL invests in 27 coal stocks.
Like uranium stocks, coal stocks were in a downtrend for years. But they broke out of that last September. Since then, the average coal stock is up 35%.
• These are big gains for such short periods…
Unfortunately, most investors never take advantage of these situations.
That’s because they don’t realize that an asset’s broken out until it’s already up 30%…40%…or even 50%.
By then, it’s too late. The big money has already been made.
Fortunately, these kinds of huge moneymaking opportunities come along every once in a while. And right now, a huge one is staring us in the face.
Just look at the chart below.
It shows the performance of gold since 2011. You can see that gold’s been in a downtrend for the last six years. That’s the bad news.
The good news is that gold’s been rallying lately. It’s up 15% since mid-December. It’s now back to where it was just before Election Day.
More importantly, gold is now bumping up against its long-term downtrend line for the first time since last summer. It’s trying to break out.
• If gold does break out, that would be a huge psychological win for the bulls…
It could even trigger the biggest gold move in years.
You’ll obviously want to be ready if that happens.
In a minute, I’ll show you how to position yourself for huge gains. But let’s first look at three reasons why I think gold will keep rallying and eventually break out.