Rack Up Gains With These Gold Shares …

Weakness in the dollar is definitely driving savvy investors into tangible assets — particularly gold, which has thrust higher, hitting an all-time high of $1,187.50 an ounce last week. In fact, The Wall Street Journal reported that so many investors have been buying up gold that HSBC on New York’s Fifth Avenue can’t cope with the amount of bullion being kept in its vaults.

Even central banks are getting in on the act, buying up hefty amounts of the yellow metal to diversify away from the U.S. dollar. Indeed, last Tuesday, Russia’s central bank announced it bought more gold last month, increasing its gold stocks by 15.6 tonnes.

The central bank of Sri Lanka announced it’s been buying gold to diversify its reserves. Even the tiny island of Mauritius recently purchased two tonnes of gold from the International Monetary Fund (IMF).

This comes on top of India’s central bank purchasing 200 tonnes of gold from the IMF in the largest central bank purchase of gold in 30 years … China’s recent admission that it increased its gold reserves by 76% … and a recent report by the World Gold Council that overall, central banks have recently become net buyers of gold.

Everyone, including central bankers, realizes that paper currency
is ultimately worthless. Gold has, and will always, stand the test of time. It will hold its value even when other monetary instruments lose theirs.

I’ve told you, unequivocally, that gold’s next leg higher would be inextricably combined with the growing recognition that the U.S. dollar &mdash as I’ve been warning you for years — would be entering the stage where it would begin to lose its global reserve status and eventually be replaced by a single world currency.

Gold is the single best protection
against the scenario I see unfolding

I can’t say this enough: Gold is the single best protection against the scenario I see unfolding. And, it’s an investment to hold for the next several years. In fact, gold is a better long-term investment than any other asset out there, in my opinion.

Reason: Gold should hold its value more firmly than nearly all other assets during broad declines, and it should substantially outperform during major advances.

I believe that, long term, it has more upside potential than silver, oil, or copper. Gold is money … real money … real wealth. It has stood the test of time, like no other asset in the world.

And in addition to physical gold, everyone should consider owning some of the top gold mining shares out there, where you get the upside leverage of the price of the precious yellow metal.

Select investments in gold and gold shares are just about the best thing you can do for your portfolio to ensure your financial health.

In fact, had you invested in a select group of gold mining shares just over nine years ago, you could have racked up gains of as much as 800%!

And those gold shares, in my opinion, will continue to appreciate. Why? Because of what the Federal Reserve is doing to the value of the dollar. It’s absolutely determined to inflate away bad debts and reinflate asset prices ― by deflating the dollar.

And the Fed will succeed.

There’s not a doubt in my mind that the value of money in every corner of the globe is going to be changed by decree.

Which is obviously even more bullish for gold.

And my forecast stands firm: I expect gold to eventually reach at least $2,300 per ounce, and quite possibly, more than double that — to $5,000 an ounce — in the years ahead.

A few rules when investing
in gold mining shares …

Rule #1: Never invest in just one mining company. Rather, invest in a minimum of three at a time for diversification.

Rule #2: Stay away from mining companies that hedge more than 50% of their in-ground gold reserves, or their annual gold production. In a rising gold market, those so-called “hedges” could cause serious losses.

Rule #3: For gold mining shares, I like to use a trailing 10% stop loss to help reduce risk. Don’t lower the stop when the market moves against you. But raise it each time the stock gains 3% from your entry price on a closing basis. If you’re stopped out, don’t fret. Assuming there hasn’t been any serious adverse fundamental change in the company, there should be ample opportunity to get back in — either on the next dip, or when the stock shows renewed strength.

Rule #4: Always keep the big picture in view. The gold strategies I’m talking about here are designed for your core, long-term portfolio. What the price of gold does from one day to the next should not be an issue for you. You’re riding a major trend. Let it do most of the work for you.

Indeed, you must be very selective when it comes to gold shares. But I think everyone should consider owning my top three, which I’ve mentioned in this column previously: Agnico-Eagle Mines (AEM), Goldcorp Inc. (GG) and Kinross Gold Corp. (KGC).

However, bear in mind I cannot give you precise buy prices, timing signals, risk-reducing strategies, nor instructions on when to grab profits. All those specifics are reserved for active subscribers to my Real Wealth Report.

Best wishes,

Larry

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