Gold is having an exceptional year… and a rough month…
The price of gold is up about 20% so far this year – one of its best years since the Hunt brothers tried to corner the silver market in 1980 and sent precious metals soaring – but it’s down nearly 5% in October.
Some investors see these numbers and get stumped.
They look at a chart, like the one below, and they can’t decide whether gold is too expensive or if it has farther to pull back.
Here’s why price-focused investors are making a big mistake…
Great investors know that you don’t just look at the price of gold to determine when it’s a good time to buy.
Longtime readers know I look at “real interest rates” to know if I should own gold.
The real interest rate is the interest you can actually earn after removing inflation. If you can earn 4% in a Treasury bond and inflation is running at 1%, then the real interest rate is 3%.
Of course, you can’t earn that anymore. Today, you earn negative 0.04%. It costs you money to hold money.
When interest rates are negative (when inflation is higher than interest on short-term fixed-income securities), that’s the ideal time to own precious metals like gold.
If you believe like I do that precious metals have their place in both times of geopolitical tension and economic stability, then you know using them as a small “chaos hedge” greatly enhances your portfolio returns.
So what can you do to add some gold to your portfolio?
You can add gold to your portfolio by buying physical bullion… shares of gold producers, royalty companies, and explorers… or gold coins…
But it can be difficult to find great opportunities on your own. That’s why, earlier this year, my publisher Porter Stansberry launched the Stansberry Gold & Silver Investor.
Porter’s team looks for catalysts – what they call “Gold Triggers” – that could propel a stock higher.
It’s a very specific type of setup found in a small percentage of gold stocks.
This Gold Trigger alert has appeared a handful of times over the past five years… and it has pointed to investment opportunities that made investors up to 107%, 131%, 266%, and 320%.
As I said, if you don’t already own a portfolio allocation to gold, now is the time to do so.
Porter and his team just released a Gold Trigger buy alert on three stocks they believe could take off.
Anyone with a brokerage account can use this system… and it has nothing to do with options, short selling, or any other complicated trading strategy.
And right now, Porter has a special one-time offer for his Stansberry Gold & Silver Investor service. We can’t say when – or if – he’ll reopen the doors to Stansberry Gold & Silver Investor ever again.
Here’s to our health, wealth, and a great retirement,
Dr. David Eifrig and the Retirement Millionaire Daily Research Team
October 26, 2016