If you’re picturing Munchkins, flying monkeys and an introductory song from the Lollipop Guild… good, that’s what I wanted you to picture.
And while there may actually be cowardly felines and heartless metal men in our reality – magic is a little harder to come by.
No fairy godmothers or wicked witches to help us get where we need to go – but we can often find where we’re headed by watching those yellow bricks.
And I’m not talking about the ones that will show us the way to the Emerald City…
I’m talking about the yellow bricks that can help us predict the direction of the markets – gold.
Gold has been the standard bearer of wealth for tens of thousands of years – the precious metal has always seemed to be considered, well… precious. Kings and emperors, pharaohs and maharajas have all hoarded gold as this shiny rock has been used to buy everything.
As little as a couple of hundred years ago, gold was still often used as the currency of the realm for the British Empire – and part of the reason they coveted the New World so much.
Even the American dollar was once tied to the price of gold and probably still would be if it weren’t for Richard Nixon and Charles de Gaulle.
But were not here to talk about gold’s past…
We’re here to talk about its future and what it means.
You see since Tricky Dick decoupled gold from the American dollar – the two have worked inversely with each other.
Meaning that when the dollar was up – gold was generally down – and vice versa.
This has made the two strange bedfellows – and for the past 45 years – helped economists predict, or at least anticipate where the market is headed…
At least temporarily.
You see, nothing is as reactive as the price of gold – maybe because of it’s long standing history of being the standard of wealth and power – nothing affects its price like the imbalance of power.
You see, this week the price of gold hit its highest price since June, mainly due to a weakened dollar and own national political unrest.
Investigations into alleged Russian tampering in the 2016 Presidential elections can be viewed by some as Trump’s inability to boost economic growth – regardless of the forward momentum the economy has gained since his election in November.
And if Trump’s (or any president, for that matter) ability to create economic growth is questioned – it usually has a negative effect on the dollar and pushes the pause button on our interest rates.
Now, remember, this really isn’t a bad thing.
I know what you’re thinking…
“How can you not look at doubt for our leadership and a weakened dollar as bad things?”
Well, I’ll tell you – because, at my heart, I’m a capitalist. I know that even in the
most unstable of economic environments – there are still plenty of ways to make money for those who know where to look.
And when gold is on the uptick there’s plenty of ways to capitalize on the rising price, and one way is through the world of junior resource companies…
While my service has never and will never recommend “penny stocks,” there are tons of up and coming mining companies whose stock prices often mirror the price of gold.
If the price of gold ticks up – often times so do the prices of certain mining companies.
Now, while I would agree that it may be safer to follow the bigger, more established mining companies into the fray…
There is often a cheaper entry fee and better ride when you’re able to find the right resource companies – especially if you’re able to find one that’s on the cusp of something big.
Maybe they’re about to hit a vein that could be worth billions…
Maybe they’re about to start production on digging said vein out of the ground…
Maybe they haven’t found gold on their property yet but may have unearthed millions in silver…
Either way, when the dollar’s dipping and gold’s starting to hum – you could find that these resource companies are often one of the best and most affordable ways to take advantage of this turn of events.
But junior resources aren’t the ONLY stocks that can benefit from a gold surge – heavy equipment and transport companies also often experience a little push when gold is running – so we definitely have options.
Now, while I may or may not recommend one of these stocks to my
GorillaTrades subscribers – it doesn’t mean that I’m not always looking for opportunities to make money.
If I come across a stock that I think will make my subscribers some dough – you can bet dollars to donuts that I’ll send an email to them ASAP!
I have my eye on a few stocks now that could help my GorillaTradessubscribers grab some quick profits and as soon as they fit the GT matrix – they’ll be on their way to my subscribers’ inboxes.
I’d love for you to be there when I pull the trigger…
Please consider joining GorillaTrades and you’ll see exactly what I’m talking about.
But even if you don’t – do yourself a favor and take a good look at some mining stocks – they could help you make a pretty penny.
“Gold is a treasure, and he who possesses it does all he wishes to in this world, and succeeds in helping souls into paradise.” – Christopher Columbus
