In today’s short discussion on gold, I aim to cover two key points.
Firstly, I’ll share my outlook on the multi-year price target for gold. Secondly, I’ll explore a strategy to generate yield, addressing a common concern about gold’s lack of dividends compared to stocks and other assets.
Critics rightly point out that gold doesn’t pay yields, unlike traditional investments. However, if we consider a sustained and linear bull market similar to the one experienced in 2009 and 2011 – a possibility I foresee – gold could potentially rally by 100% or more, mirroring its past performance.
I hold a strong belief that such an upswing is likely to happen in the next 2-4 years. Specifically, I anticipate a break from the current consolidation phase in 2024, leading to an upward trajectory for gold. While it may sound ambitious, I see no reason why gold couldn’t reach 4,000 or even 8,000. A historical precedent in the 2003 bull market saw gold rallying about 350%, making such gains possible.
To maintain a realistic perspective, hitting 4,000 is a more likely target for gold.
The challenge with gold, however, lies in its lack of dividends. To address this, I like using SPDR Gold Shares (GLD) as an investment option. With the GLD ETF, investors can generate a yield by selling option spreads below the market.
Here’s what you’ll do…
In today’s 4-minute video, I discuss how to sell put spreads on gold, pinpoint the right time to trade gold, and detail a strategy for generating a monthly return on gold from a yield perspective. It’s a simple yet effective way to unlock the potential of gold in your investment portfolio.
I release these weekly tips every Thursday for free, so stay tuned and stay subscribed here.
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