Categories: Stock Market
Topics: Alternative Investments

How to Profit from DC’s Dysfunction

Another year, another debt ceiling spat between the Democrats and the Republicans.

It seems to happen just about every year. A big blowup over the national debt, politicians using it to get things they want, and Americans once again having to view the dysfunction that is the US Congress. 

So what’s happening now and how will this likely play out over the near term? 

This time it’s House Speaker Kevin McCarthy at the helm, and he wants President Biden to negotiate his deficit reduction bill, which only barely passed in the House. 

As always happens with these sorts of things, McCarthy had to make concessions in the House to get it to pass there. Now the conversation is about what the president and the Democrat-controlled Senate will do. 

They’ve already said his bill is “dead on arrival,” and that the President wants nothing to do with it in its current form. 

The bill needs to be passed within the next two months so the US can avoid defaulting on its debt obligations, and this is just the opening phase. 

Even so, this is the kind of activity that can roil markets and make traders nervous. 

And when you throw this on top of the pile of increasing inflation, bank failures, and eroding consumer confidence, it’s not hard to see why it’s looking increasingly unlikely that things will turn around for the better anytime soon. 

As the fight drags on and uncertainty becomes ever-present, that could be primetime for safe-haven assets. 

In 2011, during the debt ceiling debate, gold climbed in price because of the continued uncertainty. Around June of that year, it was in the $1,600-per-ounce range. By August, it broke the $1,900-per-ounce barrier for the first time ever as the debt ceiling debate was resolved. 

It didn’t reach that level again until 2020. 

This could very well be a case of the cycle repeating. As of the time I’m writing this, gold is at around $2,000 per ounce. The debt ceiling debate right now is early enough that some are only just starting to price it in, but investors mostly still seem to be focusing on other areas of this turbulent market. 

As this debate drags on, we may see 2011 rear its head again. Investors could flock to gold on the uncertainty of what’s going to happen as the US veers closer to default. 

Meaning that gold could once again show why it has a long history of being a safe-haven investment. 

It could mean the value of any bars and bullion you own going up, and rising gold prices could also mean miners being more valuable. 

And real wealth can be made with gold miners.  A relatively unknown name making a massive discovery will cause its share price to skyrocket, outpacing the price of the commodity itself. 

That’s the case with one particular miner, which owns a mining site in Idaho that potentially holds 10 million ounces of gold. No one knows about this company and it trades for under $1. 

It won’t be long before its name becomes public knowledge, and the buyouts won’t be far behind. 

This is exactly the kind of wealth-making discovery investors only dream of. 

Getting in now means getting in ahead of the herd and ahead of any volatility that’s sure to come from DC’s latest run of performance theater. 

Learn all the details and see just how much profit potential there is with this play.

Ryan Stancil
Editor, Daily Profit Cycle