Ryan Stancil,
Editor
Sept. 3, 2021
Tension seems to be the theme heading into the last few months of 2021.
Will there be another variant worse than Delta?
Will there be more lockdowns and restrictions?
What’s going to happen in Afghanistan now that the U.S. is gone?
How is the country’s political landscape going to change next?
These are just a few questions that have been dominating the news cycle as we head into September. But while all of these things are going on in plain view, big things are poised to happen in the markets and many people aren’t paying attention.
That’s especially evident in the gold sector. It’s a commodity that has been holding steady all year, but now it’s poised to take off. A few investors have been watching closely, ready to line their pockets when the gold bull market arrives.
Much of the current economic conversation is focused on the labor market, the continuing pandemic, and how the Federal Reserve is going to respond to it all. In the short term, at least, things aren’t looking up.
The Labor Department released its monthly jobs report this morning and reported that 235,000 jobs were added. The expected number was 733,000. While this marked the eighth consecutive month of net job growth, that growth isn’t moving at a pace that inspires confidence in many investors.
The fact that cryptocurrencies and gold rose in price following the release of the jobs numbers is proof of that.
Will Fed Chair Powell stay the course or will he change direction and reduce bond purchases and risk turmoil in the market? The U.S. dollar is already trailing behind the currency of other countries and rising COVID cases could slow any plans that the Fed Chair has in mind.
More tension. More questions. More reasons to own gold.
As all of this plays out, the yellow metal is set to move past the $1800 range where it has been holding firm for the last few months.
In the very near future, we could be looking at a repeat of last year, where gold went on a price run that saw it outpacing just about every other sector. It was one of the hottest sectors of 2020, a time ruled by uncertainty and rich with opportunity if you knew where to look.
As it stands, an uninterrupted dip in the 10-year treasury yield could mean that gold will leave $1800 behind and slide comfortably into the $2000 range. It’s an age-old story: When confidence in the economic outlook is on the decline, gold will be among the safe havens that investors flee to.
Physical bullion has always been a go-to for many investors. Gold bars and coins have always provided peace of mind that one’s wealth was not only safe but likely to grow during times of economic uncertainty. That’s a story that’s playing out right now, with many dealers reporting limited or exhausted stock.
But investors have other options beyond buying physical gold to lock up in a vault.
Some investors are forgoing stocking up on physical pieces of gold and are instead taking a different approach. But they aren’t necessarily going after the companies that mine the gold.
Instead, they’re putting money into companies that collect payments on the production of precious metals. These are the financiers, the companies that fund exploration and production costs and then make their money back (and profit) when those projects produce the metal.
As the gold market heats up, these mining companies are in the best possible position to rake in the kinds of profits that will help investors get through the current cycle of uncertainty.
And one company in particular stands above the rest.
This company just listed on the NYSE. It pays one of the highest dividends in the sector and has the potential to grow tenfold.
The details are in a newly-released report that you don’t want to miss.
Gold’s big payday is closer than you think. This opportunity won’t last long.
Keep your eyes open,
Ryan Stancil
Editor, Daily Profit Cycle
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.
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