A few weeks ago, I bought four ounces of gold for $1,000.

I didn’t go to a coin store, get some special deal, or use some “insider” secret…

In fact, you can get the exact same deal I got.

Let me explain…

For the past several months, the U.S. dollar has been a safe haven. Problems in Europe, sweeping uncertainty abroad and fears of a global economic slowdown have pushed investors into the perceived safety of the U.S. currency.

[ad#Google Adsense 336×280-IA]But the U.S. debt crisis is still unresolved and there’s been extensive talk in Washington regarding further monetary easing.

If the government turns the printing presses back on, then get ready.

U.S. monetary policies could systematically erode the value of the greenback.

So despite the strength of the dollar as of late, the fact still remains: Gold is the most reliable way to protect your purchasing power.

So as a hedge against growing uncertainty, I want to raise my gold exposure.

But instead of buying gold for more than $1,600 an ounce, there’s a different way to own gold… and for much cheaper.

It all rests with a gold miner that can make a huge profit from digging the stuff up.

I recently added 100 shares of New Gold (NYSE: NGD) to my portfolio within my Scarcity & Real Wealth advisory.

New Gold is a mid-sized intermediate precious metals producer with roughly 7.9 million ounces of proved gold reserves, or 18.8 million ounces of the looser “measured and indicated resources.”

With only 470 million shares outstanding, this equates to four ounces of gold in the ground for every 100 shares.

With a recent share price around $10 a pop, this means you can essentially buy four ounces of gold for $1,000. — or just $250 an ounce.

Right now, New Gold has a controlling interest in six gold mines. Three of those mines are spitting out gold and generating profits today. The other three are development stage projects that stand ready to fuel future growth.

From its established mines, New Gold will bring a minimum of 400,000 ounces of gold to market this year — more than 1,000 ounces per day.

But what’s more, New Gold can bring that gold to market at a fraction of the cost of its rivals.

On average, it costs gold miners roughly $643 to produce an ounce of gold. But for New Gold, those production costs are only $420 — more than $200 below the industry average.

So, regardless of whether gold spikes to $2,000 per ounce or retreats back to $1,000, New Gold will pocket more money per ounce than its peers.

In other words, if you want to get the most out of every dollar increase in the price of gold, then New Gold is an attractive option.

But what if gold levels off here? Well, I still think New Gold is primed for explosive growth. In addition to the three producing mines I mentioned above, the company’s three mines under construction that could double the firm’s output within the next five years.

Riscks to Consider: Of course, gold prices might fall, expenses can rise and some projects might not ever pan out.

Action to Take –> Still, there’s a comfortable margin of safety here, especially since the new mines are fully funded and management has a proven track record of over-delivering.

In any case, this is a well-managed, low-cost producer whose output could double over the next five years. So if you’re looking for exposure to gold with the possibility of some major upside, New Gold (NYSE: NGD) looks like an appealing opportunity.

— Nathan Slaughter

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Source: StreetAuthority

Nathan Slaughter does not personally hold positions in any securities mentioned in this article. StreetAuthority LLC does not hold positions in any securities mentioned in this article.