5 posts tagged “gold”
Official COMEX gold future numbers are completely divorced from reality and banker manipulation is rife.
Panic buying of physical gold has gripped Europe, as consumers fear their savings accounts are no longer safe in light of numerous bank failures, prompting dealers to run dry on gold bullion, which in turn is driving up premiums.
Respected bullion dealers who charge lower premiums because they are able to buy gold in bulk are still slapping customers with $150+ premiums - and judging by the continued dearth of one ounce coins such as the American Eagle and the Austrian Philharmonica - people are perfectly willing to pay the exorbitant premiums.
The true value of gold is what people are prepared to pay to obtain it,
and judging by that criteria, the actual value of gold is currently around
$1,100 an ounce based on a conservative estimate. The official spot price of
gold is currently around $840. Central bank manipulation is keeping the price
in check. For more detail about this, read my other gold
manipulation post. Here is another must read article!
If you have saved money or made money because of this blog, tip me. For $3 you get to download my seminars. They teach you how to save $130,000 over your lifetime by smarter spending, how to make money in bear markets, and how to earn $800 a month in your spare time!
"You must own some gold in this economic environment. Gold represents the epitome of the natural resource boom because it is the world's best barometer of inflation and financial crises. When inflation is on the rise, as it is now all over the world, gold thrives.
"And when there are financial crises, as we now have with the plunging dollar and the meltdown in the mortgage markets in the U.S. - gold gets an extra boost. Savvy investors flock to the safety of the precious metal, pushing its price even higher.
"Over the next couple of years, the price of gold should trade as high as $2,200 an ounce, just to play catch-up with inflation and the falling dollar.
"Gold could trade a little bit lower. No one can pick the exact bottom. But given the risk/reward of gold here, about $1,300 an ounce of upside potential, versus maybe $100 of downside risk, worst case, I think now is a great time to load up on gold.
"The best way for core gold holdings, in my opinion, is via streetTRACKS Gold Trust ETF (NYSE: GLD). This exchange-traded gold fund makes it easy for you to own physical gold without the hassles of taking delivery or storing the precious metal.
"You buy shares in the ETF, and they buy and store the gold for you. Each share in the streetTRACKS Gold Trust ETF represents 1/10th of an ounce of pure gold. So if you buy 10 shares, you're effectively buying the equivalent of 1 full ounce of gold.
"Second, buy shares in my top junior gold miner, Yamana Gold (NYSE: AUY). Yamana is a leading Canadian-based gold miner with operations in gold - and copper - in Brazil, Argentina, Chile, Mexico, and the US (in Nevada).
"Yamana's management is very savvy, using the company's copper production to help cover the company's cost of mining gold. It has an immensely profitable mining strategy which has helped it become one of the lowest, if not the lowest, gold producers in the world."
Full Disclosure: I own Yamana and I trade it using the techniques outlined in Computerized Tools for Profitable Investing.
If you have saved money or made money because of this blog, why not tip me? For $3 you get to download my seminars. They teach you how to save $130,000 over your lifetime by smarter spending, how to make an 11% return on your investments every year, and how to earn $800 a month in your spare time!
On 8/8/2005 a conference was held to discuss the gold market. Gold was trading below $450 an ounce. it's doubled since then. Why? Here is a possible answer
