“Hello, Mr. Pocket!”
Despite my busy schedule, I always make a little time each week to kick back and watch a movie.
Last weekend, I happened upon the Coen brothers’ latest offering, a collection of shorts set in the Old West.
The film was enjoyable, but the one short I liked most followed the path of a solitary gold miner on the hunt for “Mr. Pocket.”
“Mr. Pocket,” in this story was a life-changing gold deposit. One that would make him and his future generations wealthier than ever imaginable.
And this got me thinking about how exhilarating it must have been to strike it rich out West during the early days of the Gold Rush.
I want to experience that feeling, and I want you to experience it too.
Here’s the plan.
Tracking the Money Flow
After going nowhere for the past few years, gold is once again trading higher on fears of global trade disruptions and a global bear market for stocks.
It was a rough summer for precious metals. Gold cratered in August following several months of lackluster performance. Its spot price even dropped below $1,200 for the first time in more than a year.
But a quick rally during the October stock market decline has helped set gold up for an impressive comeback as traders search for stability in a volatile market.
Gold last year was widely hated by the smart-money crowd, as you can see in the chart above. Hedge funds and other big institutions have consistently been net short gold futures since July.
But that’s changing as we speak. The institutional money is starting to move back in gold’s direction.
But the move isn’t into the precious metal itself; it’s into a play that could potentially 10x your gains with the yellow stuff.
Gold’s Potential 10X Multiplier
Physical gold is dirt-cheap today and a premier store of wealth, no question.
However, the companies that produce the yellow metal are even more undervalued right now and have a lot more upside potential in the years ahead.
As you can see clearly in the graph above, gold mining stocks are trading at the deepest discount to the S&P 500 in two decades!
It’s not uncommon to see select gold mining stocks deliver five–10 times the upside potential of physical gold prices.
And the institutional money is moving in this direction fast.
Fairfield Current reported yesterday a number of institutions are upping their stakes in gold miner stocks, specifically the VanEck Vectors Gold Miners ETF (GDX).
According to the report, Smith Moore & Co. upped their stake by 4.5%, while other institutions such as HRT Financial and Envestnet Asset Management also increased their GDX holdings significantly.
I expect this money flow could continue, and along with a sharp rise in gold prices through the year, GDX could also 10x your gold gains this year.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch
Editor’s note: DEAR READER… YOUR ATTENTION IS REQUESTED
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