Jeff’s Note: Over 20 years ago, I discovered a strange anomaly on the London Gold Market. Since then, I’ve used it to profit consistently, year after year no matter what stocks are doing.

Fortunately, you don’t have to go all the way to London to profit. In fact, you could collect payouts from just about anywhere. All it takes is a regular brokerage account and a smart phone.

Already, you could’ve made 30x more from this anomaly than buying gold bullion, and 13x more than buying gold stocks. Right now, a huge opportunity is shaping up in gold. To learn how you can take advantage, make sure to tune into my presentation on Monday, October 30 at 11 am ET right here.

Keep reading for more details on gold’s next breakout…

The gold rally is just beginning…

Both the metal and the gold mining stocks will be much higher in the weeks to come.

After rallying from $1,830 per ounce to more than $2,000 during the previous two weeks, gold took a break. It closed yesterday at $1,997.

Gold stocks actually lost ground. But before you panic, let me explain…

The Gold Bugs Index (HUI) is down 3.3% this week. That’s worse than the loss in the broad stock market. And, since the action in the gold stocks tends to lead the action in the metal, some folks are suggesting the gold rally is over.

But, that’s not really how this relationship works.

Yes, it’s true that gold stocks lead the metal. The most bullish action occurs when both are moving higher AND when the stocks are moving higher at a faster pace than the metal.

But, the duration of that rally depends on where the HUI/gold ratio is at the start of the move.

Take a look at this ratio chart comparing the Gold Bugs Index (HUI) to the price of gold over the past six years…

When this chart is moving higher it indicates gold stocks are outperforming the action in gold. When the chart is falling, the gold stocks are underperforming the gold price.

This ratio has spent six years in a range between 0.105 and 0.185, with the mid-point at about 0.145.

It’s best to own gold and gold stocks when the ratio is moving higher. That’s when we get the strongest upside action.

But the best time to actually BUY gold and gold stocks is when this ratio is near the low end of its range.

For example, let’s tighten the focus to just the last year and a half…

The blue arrows point to the times over the past eighteen months where gold stocks have underperformed the metal, but the ratio was near the lower end of its range – as it is right now.

Here’s how gold behaved following each of those times…

In each of the previous six cases, gold rallied as soon as the ratio turned higher from its absolute low level. While it wasn’t profitable to own gold as the ratio was falling to those low levels, each case marked a good time to buy gold.

Of course, it’s possible that gold could selloff from here, and that the gold stocks could sell off even harder. But, since the HUI/gold ratio is already near its lowest level in six years, it seems unlikely the downside will be all that severe.

It seems much more likely that the ratio will soon turn higher, and gold will start the next leg of its rally phase. To learn more about profiting from the strange anomaly behind these moves, click right here.

Best regards and good trading,

Jeff Clark