Saturday , 10 December 2016


Perhaps Now’s the Time To Go BIG On Gold – Here’s Why

Stan Druckenmiller has made a career out of making big calls and he has just made a huge bet on gold that indicates that he thinks the bottom is finally in. Why should you care? Because he is one of the world’s most successful and respected traders.

  • As a hedge fund manager from 1986 to 2010, he generated an incredible average annual return of 30%.
  • As George Soros’s right-hand man at Quantum it is said that Quantum’s now legendary 1992 trade shorting the British pound – a trade that “broke the Bank of England.” – was Druckenmiller’s idea and it made Quantum about $1 billion. 
The above comments, and those below, have been edited for the sake of clarity and brevity to provide a fast and easy read and have been excerpted from an article* by Dan Steinhart (caseyresearch.com) originally entitled This “Pig” Just Made a Massive Bet on Gold which can be read in its unabridged format HERE.

Specifically, Druckenmiller’s fund has bought $300 million worth of SPDR Gold Trust (GLD), an ETF that tracks the price of gold, which accounts for 20% of his fund’s money and is the fund’s largest position. It’s a huge bet, even for a big-time trader like Druckenmiller. 

Conclusion

If you agree that gold is near its bottom, you could buy physical gold or shares of GLD like Druckenmiller. That could easily give you a 50-to-75% gain in the coming years.

If you want a chance at much bigger gains, consider investing in gold stocks. Gold stocks are highly leveraged to the price of gold. In a bull market, gold stocks rise much more than the price of gold. It’s common for the best-run gold companies to increase by 20-to-1 or even 30-to-1 during a gold bull market.

*http://www.caseyresearch.com/articles/this-pig-just-made-a-massive-bet-on-gold-1

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1. It’s Time To Start Thinking About Buying Gold Mining Stocks – Here’s Why

Is this the time to be buying gold mining stocks? Maybe, maybe not, but if you don’t own any at all, this is a good time to start thinking about them. Here’s why.

2. 3 Signs That Gold, Silver & PM Stocks Have Finally Bottomed

Gold, silver and precious metals mining stocks are still nowhere near long-term or secular bottoms but I believe they could be approaching short-term tradable bottoms in the coming days or weeks based on the following 3 signals:

3. How to Play the Beaten Down Precious Metals Sector With Less Risk

Investors are faced with a serious challenge: how exactly to play the beaten down precious metals sector? If anything, investors must avoid too much risk when putting capital at work so here are 4 rules on how to go about doing so in…a disciplined way.

4. Short Gold? Take Your Profits NOW – Here’s Why

On August 6, 2015, Goldman Sachs and HSBC took delivery of a sum total of 7.1 tons of physical gold*. Are Goldman and HSBC now creating a “Big Long” in gold? If not, what are they doing – and what should you do as a result? Read on.