Hello, Reader.

Seven years ago today, a landmark Supreme Court decision struck down a 1992 federal law that banned commercial sports betting in most states.

In the years since, some avid sports betters have tried to garner support to make May 14 “National Sports Betting Day.” However, that crusade hasn’t picked up much steam (today is currently “National Buttermilk Biscuit Day”).

Even so, the theme of this near “day in history” of reminds me of another kind of bet…

As the astute financial writer James Grant observed recently, “Gold is a bet on monetary disorder – indeed, on other kinds of disorder, too, including fiscal, geopolitical and presidential.”

This bet has been paying off nicely for the last several months, although gold prices are down moderately this week as U.S.-China trade relations thaw.

Even still, I suspect the final payoff has not yet arrived.

That’s because the world does not lack for any of the disorders Grant mentions.

In today’s Smart Money, let’s take a look at why gold is a “bet on disorder.”

And while many investors may rush to buy physical gold or gold stocks, there is a more powerful way to capitalize on this golden opportunity – one that multiplies your returns.

So, I’ll also share a trading strategy that I use to maximize gains in the gold market… and how you can use it, too.

The Golden Opportunity in Fiscal Disorder

Let’s first look at fiscal disorder, which is just a fancy term for soaring government debts.

When a nation’s finances spiral out of control, its currency usually tumbles down a long flight of stairs… and rarely recovers.

Many are the countries throughout history that have lost control of their finances, and then watched their currencies take a bad spill. During the Asian currency crisis of 1997, the Thai baht, Malaysian ringgit, and Indonesian rupiah dropped 54%, 50%, and 88%, respectively. The following year, the Russian Debt Crisis slashed the ruble’s value by 75%.

But crises like these are exactly what gold loves. That’s because a rising gold price is simply the flipside of a falling currency value.

And if gold is a bet on disorder, as Grant asserts, America’s rising indebtedness, along with the waning desire of foreigners to finance it, could provide ample disorder to elevate the gold price.

Grant also mentions geopolitical and presidential disorder as additional fuel for a gold rally. The aromas of such disorder are wafting on the breeze already, and they could certainly become more pungent and disruptive.

Admittedly, gold and gold shares have been performing well for months already, which means they could be due for a significant correction. In the longer term, however, I expect the yellow metal to continue performing well, and fulfill its historical role as a hedge against uncertainty and disorder.

As an added plus, gold stocks are historically cheap. Because their profit margins are soaring along with the gold price, their stock valuations are about 30% below their 20-year average level.

Despite these compelling valuations, most investors ignore gold stocks completely. But these overlooked and underappreciated stocks are capable of delivering great results, especially when most other investments are not.

In fact, in certain circumstances, the gold sector can be one of the only ones that produces any measure of success. It is somewhat like a cicada that spends years “underground” until the ideal set of conditions lures it out of dormancy and causes it to flutter toward the sky.

Even after the bellwether NYSE Arca Gold Miners Index’s steep selloff yesterday, it is still up 37% year-to-date. That gain has trounced the year-to-date results of every other U.S.-based index Bloomberg tracks; 45 in all. The second-best performer for the year is the NYSE Financial Index with a meagre 6.3% gain. Most of the other indices are still in the red.

The impressive relative strength of gold stocks could continue, especially if the rising U.S. debt burden continues to weigh on the U.S. dollar.

Now, I do not recommend “loading the boat” with precious metals. But I do recommend buying them as a hedge against potential dollar weakness or other unforeseen financial trauma. In other words, I recommend buying scarcity, at least as a hedge.

In fact, select gold mining stocks could produce handsome results this year. For instance, SPDR Gold Shares (GLD), the first U.S.-traded gold ETF, is up 20% so far this year, and reached its 52-week high in April… right in the middle of all the tariff talk.

If you bought GLD one year ago, you’d have made nearly double the gains.

But would you believe me if I told you that I made my Leverage subscribers nearly six times that amount in a little over half the time?

Here’s how I did it…

Tricks of the Golden Trade

I used Long-Term Equity Anticipation Securities (LEAPS), which are long-dated options contracts with expiration dates one to three years away. (Options may sound scary, but they don’t have to be. You can learn more about trading options in my free special broadcast, here.)

Although LEAPS are long-term options, you don’t need to hold them until expiration. I’ve recommended closing out many of my best trades after just a month or two, delivering substantial gains while minimizing risk.

That brings me back to gold.

Every option is identified with a specific stock. And I recommended a LEAPS option on GLD to my Leverage subscribers on March 21, 2024. The call had an expiration date of June 20, 2025.

 Since then, we sold…

• A one-fourth position on April 18, 2024, for a 379% gain…
• A one-fourth position on September 19, 2024, for a 94% gain…
• A one-fourth position on September 20, 2024, for a 110% gain…
• And the final one-fourth position on October 18, 2024, for a 292% gain.

Overall, those who followed my LEAPS strategy in Leverage pocketed a whopping 220% gain on this SPDR Gold Shares call.

To learn more about this strategy, I’ve created a special presentation that explains how anyone can take advantage of LEAPS. In the broadcast, you’ll also learn how to access a special report that lays out three LEAPS trades with the potential to double your money in just a few months.

While I recommend watching the gold space, there is another opportunity that I’m keeping a close eye on: artificial general intelligence, or AGI.

Many folks are unable to fathom the kinds of changes this quantum leap in technology will soon usher in. That is why I’ll be holding my The Road to AGI: Final Warning event tomorrow.

I’ll share your invitation to this event in your next Smart Money.

Stay tuned!

Regards,

Eric Fry

Editor, Smart Money