The 2023 Daily Reckoning Gold Buying Guide

Here’s where to buy gold… [Morning Reckoning] March 09, 2023 [WEBSITE]( | [UNSUBSCRIBE]( The 2023 Daily Reckoning Gold Buying Guide - It’s easy to say, “Buy gold!” But how do you do that? - There are many options. - Coins, bullion, ETFs, single stocks… which might fit you best? Asti, Northern Italy March 09, 2023 [Sean Ring] SEAN RING [Byron King] BYRON KING Good Morning Reader, Greetings and salutations on this fine Thursday morning! Last Friday, Byron and I co-hosted a [Rickards Uncensored]( session. Both Jim Rickards and Matt Insley were away, so Matt handed the keys to me. Looking out of the corners of his eyes he silently intimated to me, “Don’t muck this up!” To stay on the reservation, the safest thing for me to do was to let Byron talk as much as possible. And what a good call that was! Byron is a lively raconteur with an unrivaled gift for storytelling. And his props are the best! He showed us the drill bit that struck his first oil well. He showed us shiny rocks and gleaming bullion. Byron even showed us a shell from one of the Navy’s guns. In short, he was a total rockstar. (Has a geologist ever been called that before?) I just sat there with a bottle of Barbaresco and enjoyed myself like I was a member of the audience. But before we even went on, Byron and I were trying to figure out what we were going to talk about. Byron said, “You know, Sean… I think we should talk about how to buy gold. Not everyone knows…” It turned out to be exactly what the doctor ordered. [Has World War III Just Begun?]( NATO sends tanks to Ukraine… Russia prepares for a winter offensive… [Is the beginning of World War III?]( [Click here to learn more]( I’ve just released an urgent message with my thoughts. But more importantly, I’m offering to send you an [exact playbook]( on what I see playing out in the world and what you need to do to prepare. [Simply click here now to watch my short message and to see how to claim a copy completely free of charge.]( [LEARN MORE]( Last week in this column, I wrote “[This Relic is Ready for its Close-Up]( It was about how we all liked the yellow metal in Paradigm’s editorial room. On Tuesday, Greg Guenthner wrote “[Can Gold Defeat the Big, Bad Dollar?]( It’s about the current USD-gold war. (You can read that below if you haven’t already.) We’re detecting a theme here. So today, Byron and I are going to show you how to buy gold, depending on your situation. We talked about it on the [Rickards Uncensored]( call. Now we’re putting it in print for you to bookmark in case you need it. Obviously, we don’t know what your portfolio looks like, so please don’t take this as personal investment advice. It’s for your education and edification. If and how you implement what’s in this piece is entirely up to you. Let’s get to it. The Ways to Buy Gold We’re going to go in the order of least risky to riskiest. We’re of the view that if you hold the gold in a safe in your house, that’s the safest. If you live in an urban community full of artists, your mileage will vary on that assumption. Individual Coins and Bars Hard Assets Alliance Paradigm Press has had a relationship with [Hard Assets Alliance]( for a long time. We want you to know that for two reasons. One is that we’ve got a duty of care we owe you. And the second is that there’s a reason for the long relationship: HAA is excellent at what it does and takes care of our subscribers. Hard Assets Alliance allows you to buy gold at your pace and then take physical delivery once you own enough full bars or coins. If you’re new to buying gold — or if you’ve tried online dealers in the past and you’ve been put off by the complexity — there’s no easier way to [buy and hold real physical metal at exceptionally low cost](. You can also buy and store your metal in your choice of five audited vaults worldwide. It’s the hands-down [easiest way to get started with gold]( silver, and other metals. The US Mint If you prefer to buy coins directly from your country’s mint, that’s certainly an option. However, we’ve noticed the mints tend to charge well over spot price for whichever metal you’re buying. For example, as I type, the spot price of gold on the market is $1,820 per ounce. In the US Mint Catalog, the American Eagle 2022 One Ounce Gold Uncirculated Coin costs $2,670.00. That’s a 46.7% premium over spot. Unless you’re a genuine coin collector, it’s not the best deal. Contrast that with the Hard Assets Alliance. A 1-ounce gold bar is $1,867.10. That’s only 2.58% over spot. You get much more value for your fiat. Gold ETFs Next, we look at the precious metals ETFs, specifically gold ETFs. ETFs, or Exchange-Traded Funds, are investment funds traded on stock exchanges like individual stocks. An ETF is designed to track the performance of an underlying index or basket of assets, such as stocks, bonds, commodities or currencies. These two ETFs track the price of gold… [Over 62 And Collect Social Security? Take Action Immediately!]( [Click here to learn more]( [If you’re over the age of 62 and currently collect Social Security, you need to prepare now](. Because Biden has given our country the worst inflation in decades – and many warn things will only get worse from here. Worse yet, the Social Security check you receive now may not keep pace with inflation… [Which is why, if you don’t act now, you could fall behind in the months ahead](. Is your retirement at immediate risk? [Click here now to get the simple, step-by-step actions to survive inflation](. [LEARN MORE]( GLD The GLD ETF, or SPDR Gold Shares, is one of the largest and most popular ETFs investing in physical gold. The GLD ETF provides investors with an easy and cost-effective way to invest in gold, without having to own and store physical gold themselves. The physical gold is held in a vault in London. GLD shares represent a fraction of an ounce of gold. So when investors buy shares of GLD, they’re effectively buying a portion of the underlying gold GLD holds. The GLD is trading around $169. That’s a touch under 10% of the price of a gold ounce. SGOL If that’s a bit too pricey for you, that’s ok. Another option is the SGOL ETF. SGOL invests in physical gold, held in a vault in Switzerland. The SGOL ETF is similar to the GLD ETF, but there are some differences. For example, the SGOL ETF is backed by gold held in a vault in Switzerland, while the GLD ETF is backed by gold held in a vault in London. Additionally, the SGOL ETF has a lower expense ratio than the GLD ETF. Right now, SGOL is trading $17.38, a bit under 1% of the spot price of an ounce of gold. So this is a cheaper way of starting with gold ETFs. Gold Miners ETFs The Gold Miners ETFs invest in companies that are involved in gold mining and exploration. Since there are 56 companies in the GDX and 104 companies in the GDXJ, investors are well diversified within the miners’ spaces. GDX The GDX ETF, or the VanEck Vectors Gold Miners ETF, is an ETF that invests in, you guessed it, gold mining companies. The ETF's objective is to track the performance of the NYSE Arca Gold Miners Index. It invests in a diversified portfolio of gold mining companies, such as gold producers and exploration companies. The ETF's holdings are spread across various countries, with a significant portion of its holdings in Canada, the United States, and Australia. Right now, GDX is trading around $26.75. GDXJ The GDXJ ETF, or the VanEck Vectors Junior Gold Miners ETF, is an ETF that invests in smaller gold mining companies. The ETF's objective is to track the performance of the MVIS Global Junior Gold Miners Index. It invests in a diversified portfolio of gold mining companies but with smaller market capitalizations compared to those in the GDX ETF. These companies are generally considered to be riskier investments than their larger counterparts, but they may also offer more potential for growth. Right now, GDXJ trades for about $32.25. “Pure Plays” – Single Stocks It’s important to understand you’re exposed to two big risks with single stocks: systematic and unsystematic risk. Systematic, or market, risk is the risk your stock may fall through no fault of its own; its price may fall just because the market has a bad day. Unsystematic, or specific, risk is the risk your stock falls even if the market is having a great day. This is the risk specific to your stock, which may have bad management or an earnings miss. These two risks are amplified if you own gold mining, exploration, or royalty companies. Single Established Companies If you’re up for a bit more risk, you can choose any one of the [constituent companies in the GDX](. Companies like Newmont Mining, Barrick Gold, and Franco Nevada are well-known and respected companies. But like any single stock undertaking, you’re carrying more risk with single stocks than by investing in an index. Even established gold miners are riskier than the average stock. Small Cap Mining and Exploration Companies There are even riskier companies that can increase your wealth substantially. As Byron likes to say, “Investing in these companies can sometimes take you from this side of town to that side of town.” That is, one winner with these companies can create life-altering generational wealth. In the last [Rickards Uncensored]( call, Byron listed five of the potential companies. Like I said, I enjoyed that call like I was a subscriber. I hope you choose to join us next time. Byron and I don’t always do the calls. You’ll get the man himself, Jim Rickards, sometimes. Other times, you’ll get our publisher, Matt Insley, or the hardest working analyst in the business, Dan Amoss. We mix it up, so you get the fullest possible coverage from Paradigm Press. We’d love to see you on the next call. You can sign up [here](. Gold Futures Lastly, I’ll mention gold futures. We don’t want you to trade these. They’re just too risky. But gold is unique in that the futures price leads the physical price and not the other way around. So the gold futures market is critically important. Keep an eye on it so you know what’s going on. But if you’re new to gold investing, our other choices above are far better suited to your needs. Wrap Up I hope you got a lot out of this piece. It’s more of a reference column than anything else. Hopefully, it gives you food-for-thought when considering your next move in the gold market. Let me know what you think by emailing me [here](mailto:feedback@dailyreckoning.com). Be sure to tell me if there are any topics you’d like me to cover in future articles. Have a great rest of your week! All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com [Response Requested]( 1/1000th of an ounce of gold available As a Morning Reckoning reader, Jim Rickards is offering you 1/1000th of an ounce of gold when you upgrade your account. It will come in the form of a “Gold Back” - a new type of gold currency that’s starting to spread across America ([click here to view](. If you have not responded to Jim’s offer yet, and want to know how to claim yours… Please click the link below for details. [Click here to learn how to claim your new Gold Back Currency<]( Thanks! Amber Anderson Customer Service [LEARN MORE]( In Case You Missed It… Greg Guenthner, Editor Can Gold Defeat the Big, Bad Dollar? [Greg Guenthner] GREG GUENTHNER Good Morning Reader, With just a little more than nine trading weeks under our belt in 2023, gold is already becoming one of the most frustrating plays on the market. It’s an impressive feat. After all, there’s no shortage of clunky, broken trades in this market. Nearly two years of bear market action has effectively stripped investors of their conviction. We’re now watching key battles break out at pivot points across several major sectors. Here are just a few of the gut-wrenching moves tormenting us so far this year: Many beaten-down growth stocks streaked higher in January, only to reverse lower in February. Energy stocks failed to break above their November highs and reversed lower, yet are now bouncing at the bottom end of a wide, sideways range. Crypto also can’t get its act together. Most of the cryptosphere has abruptly stalled and reversed after Bitcoin failed to post a clean breakout at $25K… But gold is the most discouraging asset of them all as bulls and bears battle for control following another sloppy, trendless month. [Biden’s “Hush-Hush” Plot Uncovered]( [Click here to learn more]( Right now, Joe Biden – along with 9 of the world’s largest banks – have initiated [a disturbing new experiment with YOUR cash](. It’s called “Project Cedar” – and up to now it’s been kept fairly “hush-hush”… But in [this urgent new exposé]( you’ll discover critical details behind Project Cedar and what Biden’s master plan really is. [Click here to learn the critical details before it impacts your money](. [LEARN MORE]( Earlier this year, I detailed how gold has been building for a significant change in trend since 2019. That’s when the shiny yellow rock began to rally off its bear cycle lows, breaking out of a choppy base years in the making. The base breakout also helped trigger a wild rally into the early days of Covid – along with another test of the elusive $2,000 level. You already know what happened next. The move didn’t stick, and gold was banished to a wide, choppy range lasting the better part of the past three years. Spoiler alert: Gold’s still trapped! The promising rally off the October lows hit the wall once the calendar flipped to February. This time around, gold hit the wall at $1,975, then dropped four straight weeks. Remember, gold topped out just above $1,900 during the prior cycle in 2011. The two brief runs above $2,000 in 2020 and 2022 also led to sharp reversals. Gold has never posted a monthly close above $2,000. Despite a valiant effort to kick off 2023, the January rally couldn’t get it done. That momentum is now gone, and we’re left to pick up the pieces – and figure out what might unfold next. The Dollar Problem First, it’s important to understand what went wrong with the gold rally. Here’s a hint: it begins and ends with the US Dollar. The strength of the buck has been a thorn in the side of risk assets since the bear market picked up steam in late 2021 – early 2022. The dollar has an inverse relationship with stocks and commodities. Dollar up, stocks and commodities down. Simple! That’s exactly what we witnessed in 2022. The dollar (and rates) rallied, while stocks and other risk assets slumped. But the dollar index topped out in October following an incredible rally. The uptrend was clearly exhausted – and it began to break down in November. Naturally, this is also where precious metals caught a bid. Dollar down, gold up! February was the next big turning point. After cratering for three months, the dollar caught a bid and zoomed higher. The move stalled the gold and silver rally and slammed the miners. Unfortunately, this was just the beginning of a month of pain for the gold bulls. As the dollar rally picked up steam, precious metals tanked. By the end of the month, gold had coughed up its year-to-date gains. Meanwhile, silver dropped all the way back to its October swing highs. These moves are the definition of a hard reset. Now, the dollar and precious metals are approaching critical levels. Here’s the US Dollar Index: [chart] The February rally has lifted the dollar index back to 105, an important pivot going all the way back to last summer. This is the same level where the buck failed in December. It’s also where that short relief rally turned south in early January. What happens next is critical for gold (and stocks, for that matter). If the dollar index can’t break above 105 and turns lower, there’s little doubt we’ll see a rally in precious metals. We can also assume this would be a significant rally with some staying power, since a rejection at 105 would probably lead to the continuation of the dollar’s downtrend – and a retest of those February lows. [Man Who Predicted Bitcoin Warns: “Don’t Buy Bitcoin!”]( [Click here to learn more]( James Altucher first predicted Bitcoin all the way back in 2013… And ever since, he’s been one of the biggest advocates for it. But now, he’s warning Americans that buying Bitcoin could be a big mistake… [Click here now to see why](. [LEARN MORE]( Planning for a Gold Bounce The dollar index is slowly slipping lower toward 104 as of this writing. There’s no guarantee that this fade will continue, but every move has to begin somewhere. We need to watch closely this week for a decisive reaction. If we do see significant slippage in the buck, the next leg of the gold rally should attract some fresh eyeballs. I initially thought the January rally in precious metals could be the first wave of a new secular bull run. Perhaps the February hard reset is just a bump in the road – and fresh momentum will carry gold and silver plays higher into the end of Q1. Our playbook from earlier this year still applies if we do see a strong bounce. I suspect many investors still are not prepared to ride a gold breakout. Remember, index funds offer essentially zero exposure to precious metals. If you want to profit from a move, you have to actively seek out these gold plays. Mining stocks started to perk up last week at do-or-die levels. But they have work to do. I’ll be watching GDX and some individual names for any clues that momentum is returning to the sector. Let me know what you thought of today’s article… and if you want any more topics covered by emailing me [here](mailto:feedback@dailyreckoning.com). Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com Thank you for reading The Morning Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Sean Ring] [Sean Ring, CAIA, FRM and CMT]( is a former banker and financial educator and is the editor of the Rude Awakening. Sean has trained interns and graduates from Goldman Sachs, Morgan Stanley, Citi, Bank of America, Standard Chartered Bank, DBS (Singapore), the Abu Dhabi Investment Authority (ADIA), Bank Indonesia (the central bank), HSBC, Barclays, RBS, and BlackRock. He knows the global economy is being corrupted by forces that most people can't understand and has used his unique and worldly experiences to help people navigate the markets. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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