Cracking Open Warren Buffett’s Wealth-Building Gold Secret

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Cracking Open Warren Buffett's Wealth-Building Gold Secret

By Andrey Dashkov, CFA, analyst, Casey Research

Nick Giambruno

Gold is proving to be a smart investment this year.

Year-to-date, gold is up 23%… while the S&P 500 is up just 11%. In other words, gold outperformed the market by more than 12 percentage points so far this year.

And while it’s hit some bumps in the road recently, it’s important to remember that gold doesn’t always go up in a straight line. In a crisis like the coronavirus pandemic we’re living through now, it’s always good to hold some in your portfolio.

But even better than gold are gold stocks.

Take a look at the chart below, which shows one gold stock, Orezone Gold (ORE.TO), a development-stage gold company. Keep in mind, this is not a recommendation of Orezone. We’re just using it as an example.

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Since January 31, the gold price has increased by 18%… and Orezone Gold’s shares have jumped by 98%.

That’s because gold stocks like Orezone have leverage to gold’s price… so when gold moves an inch, they can move a mile. In this case, Orezone’s stock provided more than 5x leverage to the price of gold.

That’s pretty good. But what if I told you there’s a way to get even more “hidden” leverage to gold… without buying stocks?

Let me explain…

Explosive Potential… With Limited Risk

You can get more leverage on gold with something my colleague Dave Forest calls “Warren Buffett’s No. 1 Private Investment.

I won't get too deep into the details here. But if you own one of these private investments, also known as warrants, you have the right, but not the obligation, to buy the underlying stock at a certain price before a certain date.

Buffett’s No. 1 private investments also have their own prices, like stocks. You can often get them for just a fraction of the price of regular shares. And some of them trade on public exchanges – so you can buy and sell them just as easily, right in your brokerage account.

What you really need to know is that just as gold stocks give leverage to gold… gold warrants can give you extra leverage on the gold stock itself.

It's a big part of how Buffett built his fortune.

You Don't Need Gold Coins to Profit From This Gold Boom

Let’s go back to the example of Orezone Gold from before.

You could have bought warrants from Orezone Gold starting on January 31. And if you had, you’d be pretty happy right about now…

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Remember, the Orezone stock provided more than 5x leverage to the price of gold…

…but its warrants outperformed gold by 20x.

And also note that at their lows this year, the warrants were down 47% compared to January 31. The stock was down as much at 50%.

In other words, the company’s warrants delivered more than three times the gain of the stock with no extra downside.

The best part? Orezone warrants trade for just C$0.44, or US$0.34. Compare that to C$0.94, or US$0.72, for a regular share of the stock.

That’s what I’m talking about when I say that warrants deliver stellar returns – without sacrificing safety.

Cracking Open This Wealth-Building Secret

You may be thinking that this sounds too good to be true. But my colleagues, Dave Forest and John Pangere, have been recommending warrants to readers in their Strategic Trader advisory since 2018.

And recently, they cashed in one warrant for a 4,947% return in under two years. That’s enough to turn just $100 into $5,000.

That’s exactly why this strategy is used by some of the world’s most prominent investors – including Warren Buffett.

Unfortunately, most everyday investors have no idea about the simplest way to make money from these warrants. But now, Dave and John are cracking this strategy wide open for you in their Strategic Investor newsletter.

And they have an exciting recommendation to profit alongside two of the world’s most prominent billionaire investors…

Just go right here for all the details. They’ll explain, step by step, exactly how to trade these warrants right from a regular brokerage account. And reveal their top pick to get you started.

Good investing,

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Andrey Dashkov, CFA
Analyst, Casey Research


Reader Mailbag

Warrants offer explosive returns – without adding unnecessary risk.

Just take it from our readers, who wrote in to thank Dave Forest and John Pangere for their latest 4,947% winner:

Thank you! I invested $933 from the original recommendation, and my net profit is $25,323!

– Kris

THANK YOU SO MUCH...

Dave, John, it's been an awesome ride taking your advice on this spectacular win. I am up 39x on my initial investment. Thank you, guys. Keep up the great work.

– Melvin

I'm glad I got in for a $9,634.94 profit. Thanks for the win. Now all the rest of the warrants – let's go!

– Scott

We love hearing your success stories! Keep sending them, and any other thoughts, to us at feedback@caseyresearch.com.


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