Update - August 18, 2020

Buffett Buys Gold… but We Were First

Yes, it’s true.

After years of downplaying the value of gold… Warren Buffett has bought a big stake in a gold miner.

While lots of folks will chastise the Oracle for changing his mind on gold, we won’t.

When Buffett made his famous retorts years ago against gold and its lack of income-generating potential, he was right.

When a 10-year Treasury paid 4%… we didn’t need much gold.

But things have changed. And Buffett was wise enough to change his opinion.

Instead of standing by words that were true decades ago but false now, Buffett did what was right for him and his investors… not what was right for his ego.

There’s a good lesson there.

But there’s another idea in the story that the headline writers have totally missed.

What’s He Selling?

It’s the idea that Buffett ditched banks – unloading his entire position in Goldman Sachs (GS), for example – at the same time as he bought gold.

That represents a monumental shift in mindset.

It ties directly to so much of what I’ve been researching and writing to you about over the last few years. The death of interest rates has rewritten the rules of investing and, as I’ll detail in-depth in the next monthly issue, has flipped the banking industry upside down – creating an immense investing opportunity.

I don’t blame Buffett for making this move.

We made it months ago.

Gold Volume Surges

If you recall, I told you to buy shares of CME Group (CME) based on the idea that trading volume (the market’s best indicator) will surge as more folks turn to a red-hot market and speculation rises.

Well… CME announced last week that gold and silver contracts are now trading at record levels.

On August 11, in fact, 1.55 million precious metals contracts changed hands.

That’s good news for shareholders. It plays perfectly to our investing thesis. The company gets a cut of each of those trades.

I expect very good news when the company releases its next earnings report (in late October).

This is a long-term play that I expect to get red-hot as the markets continue to heat up.

Elsewhere in our portfolio, our shares of Scotts Miracle-Gro (SMG) are continuing to greatly outperform the overall market. We’re now up by 35% on the play… and shares are showing no signs of slowing down.

The longer the fallout from the pandemic lasts and the more doubt and fear in the minds of Americans, the more money they will hand to companies like Scotts.

It’s a trend I support… and hope continues.

Look for the company’s next earnings report in early November. By then, my math has us celebrating a 50% gain on the play – if not more.

Finally… this is big. I’m gearing up for a HUGE announcement.

It’s a partnership and an event that could mean big things for you and your money.

As this year unfolds and more and more folks write to me looking to make money as the markets continue to trek toward record highs, it was clear I had to do something to help.

And I’ve chosen to do something big… very big.

Details next week!

Until then, enjoy your recent profits.

Be well,

Andy