3 Ways to Play Gold’s Explosive Rally

Here’s how to profit… [Morning Reckoning] April 11, 2023 [WEBSITE]( | [UNSUBSCRIBE]( 3 Ways to Play Gold’s Explosive Rally - Gold is sneaking toward new highs, here’s how you profit… - How to leverage gold’s moves… - Let’s talk about digital gold… [URGENT DEADLINE: Your $603.75 credit is about to expire.]( You've got an immediate $603.75 credit that has been applied to your account… [Please click here immediately to learn how to claim this credit.]( **DISCLAIMER: Please note, this offer expires tomorrow at midnight** [LEARN MORE]( Baltimore, Maryland April 11, 2023 [Greg Guenthner] GREG GUENTHNER Good Morning Reader, Gold futures are sneaking toward new all-time highs. The holiday-shortened trading week was relatively quiet for stocks. But while equities are snoozing, precious metals are streaking higher – and serious investors need to wake up and pay close attention to this action… Gold futures continue to build on this reignited rally, gaining as much as 12% off the March lows as the yellow metal finally vaults above the mythical $2,000 mark near its all-time highs. As I noted earlier this year, gold has never posted a monthly close above $2,000. Yes, April is still young! But if this momentum continues, we should watch for gold to finally get over the hump. Evidence continues piling up in favor of a huge, sustained move in precious metals. The US Dollar index remains stuck in a downtrend following its September 2022 blow-off top. The buck turned lower again following a February rally and is fading near 52-week lows. You know the drill: dollar down, gold (and risk assets) up. The recent bank crisis is also helping to shift the market narrative to a pro-gold environment. Silicon Valley Bank headlines gained mainstream traction and we’re beginning to see a narrative shift. Will more investors begin to view the economy as unstable and start to seriously consider safe haven investments? It certainly feels as if the tide is turning. Last week, soft jobs numbers started to get some play in the mainstream media. CNBC is even playing into these bearish ideas, cranking out these amazing, bearish soundbites about the slow-moving recession unfolding in the U.S. Many investors overlook the importance of these storylines as a new trend is developing. But I cannot stress enough the importance of Main Street investors and the media buying into the narrative. Every successful breakout needs a groundswell of sustained support from buyers in order to sustain the move. Grabbing the attention of a relatively small group of goldbugs won’t get the job done… With gold futures retesting $2,000 early this week, we’ll soon get confirmation if this is indeed the first wave of a new secular bull run for precious metals. Now, the question is: What will you do to profit from the move? Physical gold is an obvious choice for the longest time frames, as well as an “insurance policy” against any impending macroeconomic doom. But if we do see an extended impulse move in the metals, you’ll also want exposure to miners and other gold-related names through equities. Parking your money in an index fund isn’t going to get the job done. There is precisely one gold miner in the S&P 500: Newmont Corp. (NEM). If you want precious metals exposure, you have to go out and get it. Here are three ways to get started… [Urgent Notice From Paradigm CIO Zach Scheidt!]( [Click here to learn more]( Hi, Zach Scheidt here… I’m the Chief Income Officer at Paradigm Press. With inflation raging (and showing no signs of coming to an end any time soon), almost everyone in America is feeling the pain in a big way. Which is why, several months ago, I set out on a big mission… my goal was to create a [complete, step-by-step plan to surviving and beating inflation]( one that anyone could take advantage of. Today, after hundreds of hours of research, I’m revealing all of my findings. [Simply click here now to see how to survive America’s deadly inflation crisis](. [LEARN MORE]( - Mining for Gains The precious metals miners are the obvious choice when it comes to capitalizing on an extended gold run. In fact, I like to think of gold miners as an easy way to buy a call option on gold, as they tend to post faster gains during bull runs. But it’s important to understand what you’re dealing with when you decide to buy miners. For starters, there are less than 50 pure-play, publicly traded gold miners trading on US exchanges. All but seven of these have market capitalizations below $10 billion – so we’re mostly dealing with very small companies. It makes sense. After all, miners have been out of favor for more than a decade. Plus, these are mostly bad businesses, especially as we move down to the smaller players. The best way to gain exposure to the group while limiting your risk to individual earnings blow-ups or other issues is through the VanEck Vectors Gold Miner ETF (NYSE: [GDX](. [chart] GDX is currently consolidating above the critical $33 pivot after rallying 30% off its early March lows. If you’re projected hold time is more than a few weeks, pauses like this above $33 offer excellent buying opportunities. - Leveraging Gold’s Momentum Moves If you’re a shorter-term minded trader, you can add some leverage to your gold trading. Obviously, leveraging up adds additional risks to the mix. For starters, timing is even more critical when it comes to playing momentum moves. Buying too early in anticipation of a big move just won’t cut it. You’ll need to watch the market more closely and go into your trade with a concrete exit plan. Even with the added element of timing, you can still pull off quick gains if you capture the meat of gold’s next big move. We’ve already established that any meaningful extension above this $2,000 breakout will bring a ton of extra attention to gold. That means plenty of new traders piling on to capitalize on the next leg higher. You might want to opt for call options on GDX – or even a breakout miner if you’re feeling frisky. There’s also another option: the Direxion Gold Miners Index Bull 2x Shares (NYSE: [NUGT](. This is a leveraged fund that will move twice as far as the miners index – hence the 2x. The main caveat with NUGT is that it’s for trading purposes only. Do not attempt to buy-and-hold this (or any) leveraged fund! Wait for the next breakout and plan a holding time of a few days to a couple weeks to squeeze the most gains out of your trade. - Digital Gold I jokingly referred to Bitcoin as fake gold recently, and a few readers gave me some grief, insisting I should instead refer to the flagship crypto as digital gold. Fine. I see how one can make the narrative connection. No, Bitcoin isn’t gold. But I do think it could benefit from the broader “anti-dollar” narrative shift we’re seeing in the market right now. Although Bitcoin has traded like a tech stock since the bear market began in late 2021, it’s not a stretch to imagine it breaking from this relationship and building its own rally independent of the beaten down tech-growth stocks. The move might have already started. Bitcoin has consolidated at and above $28K for nearly a month following its own explosive breakout above $25K back in March. Believe it or not, Bitcoin entered 2022 just below $50K before surrendering to the bear market and losing more than 60% of its value. Will the next move break $30K and produce another $10K-plus run? It’s possible. Maybe add some digital gold to your pocket just in case… Those are just three ways to play gold’s rally, but there are plenty more opportunities you can capitalize off of in order to profit. Let me know your thoughts on gold (or any other topics you want covered) by emailing me [here](mailto:feedback@dailyreckoning.com). Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com [BREAKING: Elon Musk Bets Big On One Crypto. Click Here Now For The Details.]( [LEARN MORE]( In Case You Missed It… Sean Ring, Editor The World Is Dropping the Dollar [Sean Ring] SEAN RING Dear Reader, Happy Thursday! I’ve had a hell of a time writing the Rude this week. The idiots in DC, NYC and elsewhere in the Lower 48 have lobbed grapefruits down Broadway to yours truly. Whether it’s the Democrats inadvertently re-electing Donald Trump, Alvin Bragg proving that graduating last in law school still makes you a lawyer or Chicago electing an even worse choice than Madame Fishface, America has not disappointed this week. Elsewhere in the world, while America is distracted turning itself into a dystopian amusement park, the Chinese government is stepping up to be the next Nobel Peace Prize winner. But before I tell you about peace-loving Pooh Bear, let’s get a bit of history in. [Urgent: Currency Wars Alert]( “Worst case scenario is almost inevitable” -Former Pentagon Insider Jim Rickards [Click here to learn more]( In my 2011 book, I warned that the U.S. was engaged in a currency war. And that these wars: “Degenerate into sequential bouts of inflation, recession, retaliation and actual violence as the scramble for resources leads to invasion and war. ” Now with Putin invading Ukraine…Rising tensions with China… Inflation, recession, and supply chain issues all hitting the U.S. economy at the same time. It seems as if some of my worst fears have finally come true. [That’s why I’ve recorded an urgent video message.]( To update you on exactly what you need to be doing to protect yourself. Because if history is any indicator, this will not end well. [Click here to view my urgent video message.]( [LEARN MORE]( “It’s Not Worth a Continental!” Unfortunately, my beloved library is still in Cebu, Philippines, where I had to leave it due to the insane transportation costs that followed the government-induced private sector shutdown of 2020-2021. My in-laws are dutifully minding my library, shelves and reading chair until later this year, when Pam flies back to her native country to retrieve them for us. That’s why I can’t pinpoint the exact page where the phrase “not worth a Continental” jumped out at me. Growing up in Joisey and believing that America was always the richest country in the world, Ihad no idea what that phrase could possibly mean. From [Clifford F. Thies, of AIER]( In 1775, practically at the outset of hostilities, the Continental Congress authorized an issue of $2 million in paper money. By the end of 1776, $25 million was in circulation, already at a 30 percent discount relative to silver. By the end of 1777, $38 million was in circulation, at a 70 percent discount relative to silver. By the end of 1779, $192 million was in circulation, and $1 in paper money was worth only 1 or 2¢ in silver. The states were issuing their own paper money, contributing to the inflation. With so much paper money, prices were skyrocketing, and specie was being hoarded. At one point, George Washington, commander of the Continental Army, remarked that a wagon load of money would not buy a wagon load of provisions. Innkeepers, merchants, and farmers were refusing to do business in terms of money. In October 1779, the Continental Congress requested not money from the states, but actual supplies – such as corn, wheat, hay, and oats – in order to support the armies in the field. What was that paper money that depreciated off a cliff? They were called the Continental Dollars. And since a wagonload of them were worthless, anything that was deemed worthless was “not worth a continental.” Sound familiar? - The Mississippi Bubble - Weimar Germany - Gideon Gono’s 100 trillion Zimbabwe Dollar Note Mark Twain was right: history doesn’t repeat, but it rhymes…. Especially financial history! But how much does it rhyme? Will the latest version of the United States Dollar follow its Continental Dollar ancestor into worthless oblivion? The World Is Dropping the Dollar Like a Bad Habit All week, you’ve probably heard news like this: - [Will a new BRICS currency replace the dollar?]( - [China and Russia working on alternative to SWIFT (the USD payments system).]( - [Malaysia and India will bypass dollar.]( - [The most traded currency in Russia is now the Chinese yuan.]( - [Brazil and China will settle their trade in yuan, not dollars.]( Theoretically, there’s no reason for any of these countries to use the dollar. Except, their own currencies trade like they’re jumping on trampolines. So it’s difficult to maintain a solid rate. The USD was attractive because the US, in better days, had the strongest economy, military and institutions. But so mismanaged has been the dollar, whether by the Fed ratcheting up rates too quickly or the USG weaponizing the dollar by first sanctioning and then [confiscating Russia’s assets]( that the world is sacrificing stability for a leap in the dark. Because that’s what it is. To be fair, I have no idea what this new system would look like… and neither does anyone else. That’s why I think most of these moves have been made bilaterally. A bunch of things will be tried, and whatever works out the best will be codified into the BRICS “legal code.” But why is this such a disaster for Americans? Follow The Money This week, Saudi Arabia and Iran are meeting in Beijing to solidify a new relationship. I don’t know if Emperor Pooh Bear can pull off the miracle of making 1,500 years of hatred disappear. But he’s going to try his damnedest. Saudi Arabia has already agreed to trade its oil for China’s yuan. Let's write that again, for those who just blinked really quickly… Saudi Arabia has indeed agreed to trade oil for yuan. All sorts of questions pop up from just that one bit of news. Aren’t Saudis supposed to sell their oil for USD? Isn’t that what “petrodollar” means? If they’re not selling it for USD, is Sleepy Joe even aware of it? And perhaps most importantly… If the Saudis are taking in Chinese yuan, then where are they going to invest those yuan? That answer is obvious, isn’t it? They’ll invest those yuan back into China, just like they were doing with the USD and USA for nearly 50 years. That’s why these headlines make so much sense: [headline] Credit: [Bloomberg]( But this is just part of the problem. The second order effects are even worse. The Real Problem Let’s set the terms. Taxation is robbery. Inflation is theft. We’re dealing with the latter. The USG subsidizes the economy via inflation. The government literally steals from you by printing money. Here’s how: the Fed prints money and delivers that via the commercial banks to the USD users. That’s you… and all the foreigners who want USD. There are more dollars outside the United States than inside the United States. And normally, this doesn’t matter. Because you don’t benefit from “reserve currency” status. The government and the banks do, because they print $100 bills for $100 worth of goods from foreigners. The thing is, it only costs them 15 cents to print that $100 bill. That’s what we call seigniorage. And it’s the single greatest scam ever invented. You’re just the middleman through which the dollars flow. You get none of the $99.85 profit. And again, you don’t care. You don’t feel it. You go to the outlet stores, buy an SUV-load of “stuff” you think is marked down and off you go. But here’s where the problem comes in: when the foreigners decide they’ve had enough of the scam and then send all those dollars back. Those dollars build like a 100-foot wave and come crashing back into the domestic economy. Domestic prices skyrocket because there’s a tidal wave’s worth of dollars chasing far too few goods. Not only that, but do you really think your taxes pay for your military? Of course not. There’s simply not enough revenue to pay for all of it. That’s why the Fed needs to print, print, print. Those printed – one might say “counterfeit” – dollars spread the cost of the military around to everyone. Think of inflation as a tax that the central bank levies instead of a legislature. It’s a disaster for the lower classes because they get “taxed” out of existence. That’s why the Fed’s reaction to all this matters so much. They’ve got to make sure inflation doesn’t get out of control… but they still need some to pay for the “goodies” the government can’t tax you on. If you’re not prepared, your loaf of bread will require a wheelbarrow worth of paper to pay for it. But we’ll get you prepared in a second, because I think it may get even worse… [“Biden Blackouts” coming this winter?]( [Click here to learn more]( A former advisor to the CIA and Pentagon just made this dark prediction: Calamity Joe’s sabotage of the Nord Stream pipeline [His Evidence Here]( was suicide. In the next 75 days, Americans will face fuel shortages… …widespread blackouts… …empty grocery shelves… …up to $1000 energy bills… …drained retirement accounts, and… …a massive crime wave. This former CIA advisor says most Americans will suffer this winter. But a few will WIN big from the turmoil. [Here’s how to be one of them](. [LEARN MORE]( The Peace Deal According to the Global Times, Emperor Pooh Bear invited the Saudi Arabian and Iranian delegations to Beijing today to discuss detailed arrangements to resume ties. [Liu Zhongmin]( a professor at the Middle East Studies Institute of Shanghai International Studies University, practically snorted: It is obviously difficult for the West to understand the fundamental reason why China can successfully promote the reconciliation between Saudi Arabia and Iran, because China follows a diplomatic concept and policy that is completely different from the West's Middle East strategy and policy, and is different from the West's behaviors that divide the region, incite camp confrontation, and promote so-called democratic transformation as well as harmful practices such as proxy warfare. Here's my question, and I’m just thinking aloud here. Feel free to call me crazy. Do the Chinese want to build an oil pipeline from Saudi through Iran to China? One already runs from Saudi through Kuwait to Iraq. The Chinese would just need to extend it. This would lower costs and avoid hostile navies like the US and UK. Saudi would get the yuan, Iran would get an enormous transit and insurance fee and China would get its oil. This would also bring China’s Belt and Road Initiative closer to fruition. That would obviate Alfred Thayer Mahan’s sea-based world and usher us into the age of Halford Mackinder’s land-based World Island. I’m not sure, but forgive me for thinking there’s an ulterior motive. Wrap Up My erstwhile colleague Jim Rickards has been talking about gold forever. And now it’s time to act. Silver also looks like a great bet right now. We can see the upside all the way to $50 or higher. And, if you’ve got room left, a bit of Bitcoin can also help you avoid inflation. For Bitcoin, you’re not swinging for the fences. Just a bit of protection. And remember, it’s Bitcoin. No shitcoins! You’ve got time, but the sooner you act the better. This is a lot to take in, but I want to make it clear: something big is brewing here and it doesn’t look good for the everyday American. So let me know how you feel about all this (or any other topics you want covered) by emailing me [here](mailto:feedback@dailyreckoning.com). And have a wonderful Easter weekend! All the best, [Sean Ring] Sean Ring Contributing Editor, The 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) [Greg Guenthner] [Greg Guenthner, CMT,]( is chief strategist at Forge Research Group. He has spent the better part of the past two decades developing long-term and short-term strategies with a single goal in mind: to help everyday investors generate outstanding returns and control their financial futures. Greg’s charts, analysis, and insights have appeared in Marketwatch, Forbes, Yahoo Finance, and many other financial publications. 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