Why I’m Selling Gold Today

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A A A

After owning the SPDR Gold Shares ( GLD ) ETF since 2009, I'm selling my position and buying another gold investment.

This afternoon, I'll release a brand new research recommendation on a little-known company that I call a " British Columbia Gold Bank ."

I'm quite certain that you've never heard about this type of investment. That's because there are only a handful of companies in this unique business. CNBC describes it as a "banker for gold miners."

So what exactly is a "gold bank?"

The company that I'm recommending today is in the business of providing capital for the most promising gold mining projects in the world.

Simply put, they evaluate projects and invest a small amount of capital. In exchange, they get the right to buy gold at ridiculously low prices. With 10 such agreements in projects around the world, this company is a cash machine.

This company's agreements give it the right to buy roughly 125,000 ounces of gold this year…for as little as $220 per ounce.

Even with gold prices falling 26% this year to $1,200 per ounce, this company makes money hand over fist. After all, buying gold at about $0.25 on the dollar is a great business.

The cash is flowing into this company's coffers so quickly that the CEO announced plans to initiate a dividend within the next 12 months. With cash soon being paid back to shareholders, this investment could offer the upside of capital appreciation and a growing dividend.

I know that investing in stocks before they initiate a dividend can be incredibly profitable. In fact, the biggest "gold bank" saw its shares rise 590% in the five years following its first dividend payment.

The fact that my latest recommendation is planning to launch a dividend shortly could bode well for the stock price and shareholders who buy in advance. And income investors who are willing to wait for the dividend could be rewarded with a soaring share price.

One final reason that this company is so attractive is its impressive founder and CEO. His impressive track record includes serving as the CFO at one of the biggest "silver banks" - a similar company that saw its market value rise 10-fold under his leadership, from $300 million to $3 billion.

It's for all of these reasons that I plan to sell my long-standing position in one of the biggest gold ETFs . Why? Because I'm not convinced that "owning" gold at $1,200 per ounce and speculating that it will rise in price is a good investment strategy.

Rather than simply betting on the price of gold , with this "British Columbia gold bank" I can own a piece of a growing company with considerable upside.

Even the most conservative investors will find this "gold bank" attractive. After all, where else can you buy gold for $220 - $400 per ounce?

My complete investment report on this opportunity comes out this afternoon.  I'll be dispatching my report to subscribers of my $100k Portfolio investment advisory.  And in the coming days, I'll be buying shares in my personal account.

I believe this is the best gold investment you can make today. Anyone who is serious about making money from precious metals should be aware of this story and the incredible opportunity I'm seeing in this gold bank.

For the full details on this opportunity, click here now .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: GLD

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