Start With Physical Gold Then Speculate on Miners
Start With Physical Gold Then Speculate on Miners By E.B. Tucker for Casey Research
Chris’ note: Regular Dispatch readers know we see big things ahead for gold…
But that doesn’t mean anything if you don’t know how to position yourself. That’s why today, I’m bringing in my good friend E.B. Tucker to share a simple two-step gold playbook.
As you may know, E.B. is a true gold expert. Before working in the newsletter business, he co-managed a precious metals equity investment fund. Today, he serves on the board of a successful gold company.
In short, he has deep connections in the gold business. He sees what’s really going on behind the scenes… before the mainstream media catches on.
This helps him recommend the best names in the industry for his readers. For example, one of his gold plays is up 119% since he recommended it just over a year ago. Another’s up 47% over the past six months.
It’s not too late to get involved… If you want to make the most of the coming boom, pay close attention to what E.B. says below…
Chris Reilly, managing editor, Casey Daily Dispatch: Hi, E.B. Let’s get right into it.
As regular readers know, you believe gold is primed for a big rally. You say it’s bound to take out its all-time high of around $1,900 per ounce next year… And from there, you can see it hitting $2,200 – a 50% gain from today’s price.
Today, I want to take a step back and help readers understand exactly how they can take advantage of the coming move. What’s the playbook?
E.B. Tucker, editor, Strategic Investor: Good question…
Well, if you’ve never touched gold before, then you’re completely crazy to go out and try to look for the next great mining stock. It’s the equivalent of looking for a cutting-edge software company stock if you’ve never turned on a computer and used it.
You want to start with physical gold.
That’s because gold is a tangible asset that you can hold in your hand. It’s real money, a safe-haven asset, and a way to protect your wealth. It’s survived every financial crisis and will continue to do so.
Chris: What’s the best way to buy physical gold?
E.B.: It’s very easy. I recommend common one-ounce gold coins. The first thing you can do is buy a 1-ounce U.S. gold Eagle. That’s a one-ounce gold coin. You can buy a South African Krugerrand that weighs more than an ounce, but has one troy ounce of gold in it. The Krugerrand is an alloy, so it’s more durable. You can buy a one-ounce Canadian Maple Leaf, which is the purest gold coin available. Any of these coins will work.
You’re going to pay just a tiny bit more than the price of gold to buy these coins. You can hold it in your hand, you can put it in a safe deposit box, you can put it in a kitchen drawer. I think it’s unlikely that someone’s going to burglarize your house for one ounce of gold. But that doesn’t mean you should tell people about it.
I recommend looking at the one-ounce coins offered by Gainesville Coins.
[Chris’ note: We asked Gainesville Coins to create this special page as a starting point for Casey Daily Dispatch subscribers who are new to physical gold. We do not receive any compensation from Gainesville Coins for bringing you this offer.]
Chris: Why is starting with physical gold important?
E.B.: The whole purpose of gold is wealth insurance. You probably have flood insurance living in Florida… well, gold is wealth insurance for your savings.
And your savings are in danger right now.
Think about this… If you had saved up a million dollars in 1994, and bought 10-year Treasury bonds, you would have made over $70,000 a year in interest. That was more than double the median household income at the time – or the equivalent of making over $125,000 today.
It would have been reasonable to think back in 1994 that saving up $1 million meant you’d control your own destiny. However, if you lived until today, just 25 years later, you’d be going back to work.
If you kept that $1 million in the Treasury market, only spending the interest each year, you’d only earn $16,000 a year today. To get back to earning $70,000 today, you’d need close to $4 million saved up.
Here’s where gold comes in: During that time the value of a one-ounce gold coin moved from $385 to $1,450 today. In other words, gold has kept pace with the decline in income from your savings.
You see how this works?
Chris: Indeed. Seems like a no-brainer.
E.B.: That’s right. You’re not looking to make a fortune by buying physical gold. You’re looking to preserve your wealth status. That’s why people have owned it for thousands of years.