Investors can look forward to an excellent year for one very special investment: Gold.
Gold prices are set to break $2,200 in the next few months.
That's more than 25% in gains for those who buy in right now, which is nothing to scoff at - unless you know what Money Morning editor Peter Krauth knows.
If you do, those 25% gains look like child's play compared to the 100% you could earn exploiting a small group of "rubber band" gold stocks that could start rebounding as early as this month.
In fact, according to Peter's new Money Morning report, these gold stocks are stretched to the limit right now, and the slightest trigger could send them soaring.
Why? Because there's an important ratio in the gold markets that's been stretched out of shape by the boom.
This ratio - between a certain group of gold investments and the spot price of gold - has been maintained for decades.
Traditionally, these investments, which can be as cheap as $15 per share, average a 2:1 ratio with gold - meaning if gold goes up 10%, these stocks double that, going up 20%. If gold goes up more than 60% - like it did from mid-2010 to mid-2011, these stocks should go up 120%.
But the recent run up in gold prices has gone too high, too fast for these investments to keep up. And that 2:1 ratio has been thrown completely out of whack, with these stocks trading nearly sideways, despite much higher returns as gold prices surged.
That's about to change...
After more than 18 months of surging gold prices, these "rubber band" stocks have been stretched as far as strength will allow. And as they snap back, they could easily break 100% gains or higher - just to come up even with the current price of gold.
In his new report, Peter shows you exactly how to identify the gold investments that are ready to snap back.
These stocks are easy to come by, but finding the right ones - the ones that are currently "stretched" the most - is the key.
That's why Peter also gives you three of his favorite "rubber band" gold investments - stocks he rates as a "buy" right now................... http://www.moneymorning.com/ppc/GoldPrice_1210_c.php?code=X304M105&gclid=CJeA58TEjK0CFcFKpgodZxbUlw
KMC Price at posting:
2.2¢ Sentiment: ST Buy Disclosure: Held
