Buy gold in July and sell it at the end of August…
That’s what I told you in the July 5 Daily. Not only that, I laid the entire trade out for you.
Here’s an excerpt:
Twice a year, a window opens when you can buy this asset on the cheap and sell for a profit: January through February and July through August.
That asset is gold. And since we’re in July, now is a good time to start buying some.
I even told you how to buy it: The SPDR Gold Trust ETF (GLD).
Hopefully, you followed my advice. If you had, you would have made 9% in less than two months.
Here at the Daily, we look for timely trades that can help you make money right away. Our goal is to buy things that are rising in value.
And gold looks like a buy right now…
That’s because the next gold profit window opens in January. But this time, I want you to get in a couple of months earlier.
Chaos is Coming
Regular readers know we consider gold one of our “chaos hedges.” It’s a prudent way to protect your wealth in a time of crisis. And the world is full of crises right now.
Here are just a few of the hot spots:
- North Korea
North Korea is threatening to continue its nuclear missile tests. And President Trump says he may to resort to a “military option” to prevent them.
In yesterday’s Daily, I told you President Trump is deploying nuclear bombers and aircraft carriers off the coast of North Korea.
Investors will flock to gold if there is a military conflict on the Korean Peninsula.
Moving to the Middle East, President Trump says he wants to scrap the nuclear agreement Iran signed with the United States and other world powers.
Trump has repeatedly called the deal a “disaster.” Last week, he said he would decertify the agreement… and send it back to Congress.
Iran says if the deal gets scrapped, it will restart its nuclear program. If that happens, investors will flock to gold.
And in Europe, Spain is on the verge of a constitutional crisis.
On October 1, separatists in the Catalonia province passed a referendum to break away from the country. The Spanish government says the vote is illegal.
Spain is the eurozone’s fifth largest economy. And the separatist movement has caused alarm in markets across the continent. If it plunges into a constitutional crisis, investors will flock to gold.
Geopolitical uncertainty is a major catalyst behind gold. But there are technical reasons to like gold right now, too. In fact, it just passed a key test.
Gold Is Ready to Break Out
In the chart below, you can see that since 2011, gold has made a series of lower highs.
The downtrend created a resistance line. Anytime gold rallied to this line, it’s retreated.
But an interesting thing happened in August—gold broke through its resistance line.
When that happens, the resistance line often turns into a support line. And that’s exactly what happened to gold.
In fact, gold is now in a confirmed uptrend (see chart below).
I believe gold will stay in this channel through February. That would put gold somewhere near $1,430—a 12% gain from today’s prices.
As I told you above, the next window opens in January. But we want to get in earlier this year.
With all the uncertainty in the world, gold could take off at any moment.
To make this trade, buy gold right now.
Nick Rokke, CFA
Analyst, The Palm Beach Daily
P.S. A good way to play this trend is to buy gold bullion or coins. If you want a simpler option, consider GLD.
But if you really want to juice your returns, you should follow our friends over at Casey Research. No one knows more about the gold market than Doug Casey. He’s made millions in gold over the past 35 years.
Today, Doug says it’s “very likely” that gold will reach $5,000 per ounce. If he’s right, and you take action right away, you could make five times your money. You can learn how right here.
Japan Goes All In: Japan was the first major economy to fully legalize bitcoin. It’s now close to becoming the first to have its own national digital currency. A group of Japanese banks plans to launch the new digital currency in time for 2020 Olympics in Tokyo. The new project will allow the Japanese to pay for goods and services with their smartphones. And it has the support of Japan’s central bank and regulators. This is the latest sign that cryptocurrencies are here to stay.
Bank Profits Up: Banks’ earnings season is underway. So far, the results are positive. JPMorgan Chase, Citigroup, and Bank of America all announced last week that they beat profit expectations. Wells Fargo was the only major bank to miss. That was due to a one-time charge tied to mortgage investigations. Overall, the results are better than expected. Given that, we still think banks are a good buy.
Amazon to Reach $1 Trillion Before Apple: Amazon’s market cap is $460 billion. That’s compared to Apple’s $795 billion. Which one will reach $1 trillion first? According to Scott Galloway, it will be Amazon.
Galloway is a professor at the New York University Stern School of Business. He’s also the author of The Four, a book about Amazon, Apple, Google, and Facebook. Galloway says, “Amazon has replaced profits with vision and growth. As a result, they arguably have access to the cheapest capital in the history of modern business.” This bold prediction should come as no surprise to Daily readers. We made this call back on May 3.
California’s solar initiatives look great on paper, but the state is now awash in excess solar power that threatens the grid.
Only one solution can save the grid and soak up the excess power: batteries. And one specific element lies at the center of this new battery production. Learn more here…