6 Gold Stocks Set to Double in Price

Gold is having an amazing year, up 55% over the last 12 months and beating the S&P 500 by a wide margin. With a 21% gain already in 2025, gold seems to be in a powerful upward trend that history suggests could continue.

In this analysis we will go through

1. Why is Gold Rising ?

2. What history tells us about where it might go next ?

3. How a small investor can potentially profit from this trend with gold mining stocks and ETFs ?

What's Happening with Gold Right Now?

The Simple Story: Gold spent about four years moving sideways (what traders call "consolidation or base") before finally breaking out to new highs in early 2024. This is like a spring being compressed – the longer it's compressed, the more powerful the release when it finally breaks free.

The way a stock or commodity consolidates reveals important market psychology.

In gold's case, we've seen a relatively shallow consolidation, suggesting investors weren't eager to sell their positions. This is typically bullish, as even modest buying pressure can drive prices significantly higher.

Deeper consolidations, where prices drop substantially before recovering, generally provide less reliable breakout signals.

There's also a valuable time relationship worth noting: the duration of consolidation often predicts the length of the subsequent upward move. A 2-week consolidation might lead to a 1-week advance; a 4-month consolidation could produce a 1-2 month rally; and gold's impressive 4-year consolidation suggests a potential 2-year upward trend extending into 2026.

One helpful indicator I watch is called the Average True Range (ATR) multiplied by 1.5. This measures the typical price movement over time. When price movement becomes unusually tight - less than twice this ATR value - it often signals that a big move is coming.

Think of it as pressure building up before a significant breakout. Gold recently displayed exactly this pattern before its current upward move began.

What History Tells Us About Gold's Current Move

The last time gold showed a similar pattern was in the 1970s. Between 1974-1978, gold also consolidated for about four years before breaking out. What happened next? Gold shot up by an incredible 350% in the following years.

Currently, gold is only up about 50-60% from its breakout level. If history repeats (or even rhymes), we could still be in the early stages of a much bigger move.

In simple terms: Gold has started running, but it may have only completed the first leg of a marathon.

The 1970s pattern showed gold forming several bases(consolidations) during its uptrend before ending in a "climax top" - a period of near-vertical price action that delivered extraordinary returns in a compressed timeframe. The current gold market doesn't appear to have reached this climax phase yet, indicating further upside potential.

How Beginners Can Profit From These Gold Moves

A Simple Strategy Anyone Can Use

Even if you're new to investing, you can use this basic approach that works across different markets (stocks, crypto, commodities, etc.):

1. Start with the big picture: When a major market like gold shows a strong signal (like breaking out after years of moving sideways), pay attention! This creates a ripple effect.

2. Look for related investments: Once gold starts moving, look for gold mining stocks or gold ETFs that might benefit. These often follow gold's lead but with even bigger moves.

3. Wait for clear buy signals: Don't rush in. Wait for these related investments to show their own strong breakout patterns. The stocks mentioned earlier (AU, HMY, GFI) all displayed these patterns.

4. Consider related markets: Think about what else might be affected. For example, silver often follows gold's trends (hint: silver might be setting up for a similar move right now!).

5. Rinse and repeat: Once you spot a new trend in a related market like silver, apply the same approach again - look for silver mining stocks that might benefit.

This step-by-step method helps you ride waves of opportunity as they spread from one market to connected markets. The best part? You don't need complex strategies or constant trading - just patience to spot these major moves and the discipline to follow your plan.

Top Gold Mining Stocks To Watch

Gold mining stocks can give you more bang for your buck when gold prices rise. Think of it this way: if a company spends $1,200 to mine an ounce of gold and sells it for $1,500, they make $300 profit. If gold rises just 20% to $1,800, their profit doubles to $600 per ounce!

Important Note: I want to be transparent - I missed sending out buy alerts at the ideal entry points in the previous week due to a some unforeseen circumstances. So this is NOT a recommendation to buy right now. Instead, I'm showing you these examples so we’ll recognize similar opportunities in the future.

Currently, many of these stocks have already moved up significantly from their breakout points (they're "over-extended"). For those who don't already own these stocks, patience is key - waiting for a pullback (a temporary dip in price) would likely offer a better entry point with less risk.

Let me show you what these setups looked like, so you'll know what to watch for when the next opportunity comes along...

1. AngloGold Ashanti (AU)

$AU ( ▼ 5.2% ) recently broke out of what traders call a "cup and handle" pattern – one of the most reliable bullish patterns in technical analysis. The stock showed strong volume (lots of buyers) during this breakout, which is a good sign

2. Harmony Gold Mining (HMY)

$HMY ( ▼ 2.45% ) shows a similar cup and handle pattern with a powerful breakout. The stock is approaching the highest price it's ever reached (all-time highs), which is typically a positive signal

3. Gold Fields Limited (GFI)

4. Additional Mining Stocks

$AEM ( ▼ 0.82% )  $NGD ( ▼ 2.67% )  

Gold ETFs for Different Risk Appetites

For investors who prefer ETFs over individual stocks, there are several options with varying levels of leverage:

1. Standard Gold ETF: SPDR Gold Shares (GLD)

This $GLD ( ▼ 0.44% ) ETF simply tracks the price of gold. It's the most straightforward way to invest in gold without buying physical gold or mining stocks.

2. ProShares Ultra Gold (UGL) - 2x Leverage

$UGL ( ▼ 1.05% ) provides 2x daily leverage to gold price movements. While gold has moved approximately 50% since its breakout, UGL has gained about 109% during the same period, demonstrating the power of leveraged exposure in a strong trend.

Leveraged ETFs are more complex and riskier than regular ETFs. They're designed for short-term trading rather than long-term holding.

3. GraniteShares 3x Long Gold ETF (SHNY) - 3x Leverage

For those seeking maximum exposure, $SHNY ( ▼ 1.47% ) offers three times the daily return of gold. When gold gained about 60%, SHINY delivered approximately 180% returns.

Important Caution: With greater potential returns comes greater risk. SHINY experienced several 20%+ drops during its overall uptrend. Only consider this if you can tolerate high volatility and understand the risks of leveraged ETFs.

Key Takeaways for Investors

1. Gold's bullish cycle appears to be in its early-to-middle stages based on historical comparisons

2. Mining stocks offer leveraged exposure to gold's price movements

3. Look for stocks forming strong bases with volume on breakouts

4. Consider your risk tolerance when choosing between direct gold exposure, mining stocks, or leveraged ETFs

Technical analysis suggests that the gold sector could continue its uptrend for a substantial period, potentially into 2026. While some stocks have already made significant moves, the sector's overall technical strength indicates further upside potential, particularly if gold follows its historical pattern from the 1970s breakout.

For investors interested in this sector, maintaining disciplined position sizing and stop-loss strategies remains crucial, as even strong trends experience periodic pullbacks.

Ready to catch the next gold breakout? Join Profit Punch Premium today and get real-time alerts, exact entry/exit points, and step-by-step guidance. Click here to start now!

This analysis is based on technical patterns and historical comparisons. Always conduct your own research and consider your investment objectives and risk tolerance before making investment decisions.

Regards,

Valentine