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| By Jim Nelson |
It’s now been officially one week since combined U.S. and Israeli forces started striking locations within Iran.
It didn’t take long for the Iranian military to reply in kind by targeting nearly a dozen of its neighbors in the Middle East.
And while it seems Iran’s limited navy is not capable of completely holding the Strait of Hormuz, traffic in the most important thoroughfare for oil and gas shipping is still slow.
Meanwhile, investors have no idea what to do now. The S&P 500 has seemingly crashed and recovered only to crash again each day this week.
Gold, which rose at the outbreak of this new war in the Middle East, has since gone slightly down.
Throughout this week, your experts have been telling you to load up on energy-related stocks to ride this rally.
Sean Brodrick pointed out how this spike in energy prices could end the one thing keeping inflation from a repeat of 2022.
His solution is to buy utilities. Specifically, he says to target the Utilities SPDR (XLU).
Bob Czeschin lays out the case for why this spike might have even longer legs than anyone would want.
But he also has a direct way to play it: the Oil & Gas Exploration & Production SPDR (XOP).
But let’s take a page from Bob and zoom out on the whole situation.
Gold might not have had its best week, especially compared to oil. But that doesn’t mean oil is the only winner from all this chaos.
Here’s a one-year chart of oil and gold prices:
Clearly, oil still has some catching up to do. But that doesn’t mean gold won’t continue its own tremendous rally higher.
In fact, Sean followed up his article about oil’s impact on inflation with an explanation of why gold slumped … but won’t stay down for long.
Silver, too, is on Sean’s radar for profits. He included this interesting factoid:
There are about 500 grams of silver (~16 troy ounces) in every Tomahawk missile.
Over the weekend, the U.S. fired 400 Tomahawk missiles at Iran.
That’s 200,000 grams of silver vaporized.
He’s not alone. Nilus Mattive is also bullish on precious metals even as they fell this week.
He writes:
From my vantage point, any financial adviser should be telling their clients — including their younger ones — that a core allocation to precious metals is critical.
It doesn’t have to be 20%. But I reckon the vast majority of professionally-managed individual investment accounts still have zero allocation to precious metals other than token exposure through mining companies in major market indexes.
It wouldn’t take much of an increase in gold and silver allocations to kick their prices back into gear.
All this points toward adding precious metals to your own portfolio.
And another of your experts has a brand-new — and potentially even more profitable — way to do that.
Chris Graebe just sat down for an interview where he explains how one small pre-IPO company is “mining” for gold, silver and other metals without any drilling or digging.
Watch this interview before we have to take it down.
Of course, resources aren’t the only way to make money … even in this chaotic market.
Gavin Magor laid out the case for why this market — especially for AI-related companies — is so mixed … and what to do about it.
Michael A. Robinson followed up with his answer to AI-related chaos: find companies that use AI even if no one realizes.
His case in point: AI tractors!
Have a great weekend!
Jim Nelson
Managing Editor, Weiss Ratings Daily
