From the Desk of Jeff Clark,

senior precious metals analyst at Casey Research.

How Big Investment Funds Are Buying

Gold for $911.62/oz

(Even though it’s selling for nearly twice that. )

The smart money is using a little-known anomaly in the metals market to buy deeply discounted gold while everyone else pays exorbitant prices. Keep reading to discover what this anomaly is. and how you can use it to protect and grow your wealth.

Dear Fellow Investor,

The number-one question people ask me and just about every other gold analyst is.

Should I buy gold now or wait for the price to come down?

Maybe youve wondered about it yourself.

The short answer is, even though golds well over $1,700 an ounce as of this writing, now is a good time to buy.

Weve all seen golds big run-up. And its not surprising that investors are flocking to gold when you consider how worried they are these days about worldwide inflation. the European debt crisis. S&Ps downgrading of Americas credit rating. the volatility in the worlds financial markets.

And even though these and other troubling issues will keep the bull market in gold going strong, theres an even better profit opportunity than buying the metal itself.

Its an opportunity that the big investment funds are exploiting, which can get you into the yellow metal for as little as $911.62 an ounce.

Theyre doing this by leveraging a market anomaly that practically guarantees healthy gains.

An unusual situation is allowing you to get into gold at a steep discount

Right now you can get positioned in the gold market at more than 45% under the current spot price of the metal .

Precious metals analysts like myself along with many highly respected institutional, hedge, and mutual fund managers credit this to an anomaly in the precious metals market: Gold and silver mining companies are seriously undervalued relative to the price of the metals themselves.

This has created a rare profit opportunity that is unlikely to last very long.

Big institutional and mutual fund managers are urging their clients to

buy gold miners

Bank of America and Merrill Lynch analysts recently told their clients that gold stocks are severely undervalued and reflect gold prices of over a year ago, when they were 20-25% less than they are today.

Our analysis suggests that most of the gold producing companies appear undervalued. we recommend an overweight position in gold equities as the summer wanes and we head into the fall season, traditionally a great time to own gold companies.

Dundee Capital Markets

But that assessment is based on an overview of the entire mining industry. Im watching a select group of mining stocks that are even more undervalued relative to the price of gold and theyre offering some of the best profit opportunities Ive seen in years.

Frank Holmes, chief investment strategist for U.S. Global Investors, agrees that gold producers have huge upside potential: There is a substantial opportunity to buy healthy gold mining companies at historically low prices compared to gold.

So does John Hathaway, portfolio manager for Tocqueville Gold Fund, who claims gold stocks have tremendous catch-up potential to the price of gold.

The point is professionals who analyze the precious metals industry, as well as big fund managers, recognize theres an unusual divergence between the price of gold and mining company shares.

This divergence shows that shares of gold companies are severely lagging the price of gold. and should be much higher.

Thats why the experts are urging investors to immediately get into gold and silver equities. They know the current situation presents a strong liklelihood of outsized gains. gains that could be life changing.

A once-in-a-decade buying opportunity that can give your portfolio a major boost

Mining stocks typically outperform gold by 3 to 1. And from 2001 to near the end of 2007, they did even better, outgaining it by 5 to 1.

The chart below illustrates this point. It compares gold producers, as measured by HUI (the Amex Gold Bugs Index, shown by the red line), to the SPDR Gold Trust ETF (GDL, in blue), which is designed to track the price of gold:

Gold stocks outperformed physical gold

But its totally different today this historical trend has completely reversed. Gold is now outperforming mining companies by a 3.6-to-1 margin, opening up a rare profit opportunity.