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Offline Flyin6

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Time to buy Gold (and Silver)
« on: January 24, 2015, 09:15:35 AM »

It's Finally Time to Buy Gold   
 By Sean Goldsmith   
Saturday, January 24, 2015 

(Sorry I can't transfer the charts which are very illustrative and helpful, but here is the gist of the article:)
 
One more Stansberry Research analyst just turned bullish on the precious metal...

We have a tremendous opportunity in junior miners today. As my colleague Dr. Steve Sjuggerud likes to say, they have the three hallmarks of a great contrarian trade... They're cheap, hated, and in an uptrend. 
 

 Longtime readers know when junior miners rally, they soar... making investors five or 10 times their money.


Gold stocks kicked off 2015 the same way they started 2014 - by breaking above resistance of both the nine-day exponential moving average (EMA) and the 50-day moving average (DMA).

Take a look at this chart of the Market Vectors Gold Miners Fund (GDX)...

The chart also shows a "bullish cross" of the nine-day EMA over the 50-DMA.

This is how strong gold-stock rallies begin. 
 

 When several of our analysts are making the same call, you should pay attention.

 In the latest issue of True Wealth, Steve Sjuggerud proclaimed, "It's finally time to buy gold stocks."

 Again, Steve looks for assets that have three characteristics: They're cheap, hated, and in an uptrend.

 With the U.S. dollar hitting record highs, people have been poking fun at gold bugs. Lots of gold stocks are trading for absurdly low valuations compared with the price of gold. (While gold stocks are down 66% from their 2011 peak, gold itself is down just 32% over the same period.) So they're definitely cheap and hated.

 And Steve says gold stocks have bottomed and begun an uptrend. In short, it's time to back up the truck.

Gold stocks have never been more hated than they are right now, as I'll show. Buyers of gold and gold stocks have disappeared.

The U.S. dollar is more loved than ever. The data show that traders have never been more optimistic about the dollar than they are today, which tells me the dollar is at (or very close to) its peak.

We are finally seeing an uptrend in gold stocks... suggesting the worst has passed and that this is a safe entry point.

Global interest rates are at record-low levels, which helps the case for gold. For example, five-year German and Japanese government bonds now pay zero-percent interest, and five-year Swiss bonds have a negative interest rate! With all these record extremes, this is an incredible moment and we have to take advantage of it. Our upside potential from here is 200%-plus returns in two years. 
 

 One reason Steve is bullish on gold is because the dollar is so popular right now. Bullish sentiment toward the dollar is at an all-time high. And speculators have more bullish bets on the dollar than ever.

 Everyone is buying dollars. The move has been parabolic...

 And after the Swiss National Bank (SNB) shocked the market by unpegging its currency from the euro, we may have seen the last group of buyers rushing into the safety of "King Dollar." After such a parabolic move in an asset, there's usually a correction.

 But what happens when investors pull money out of the dollar? Where will that money go? It's not going into the euro... The SNB signaled its loss of faith in the euro with its surprise move. Switzerland is betting on further weakness.

 And in a speech to business owners this week, French President Francoise Hollande echoed the SNB's sentiment. The Wall Street Journal reported...



On Thursday, the ECB will take the decision to buy sovereign debt, which will provide significant liquidity to the European economy and create a movement that is favorable to growth. 
 

 Money isn't moving into the Japanese yen, either. Interest rates are at record lows around the world... You're earning zero interest in German government bonds. And you're actually paying to hold Swiss bonds.

 When interest rates are at zero, gold becomes highly competitive with money in the bank. As Steve explained...



Governments can print more money, but they can't print more gold. So when you're given the choice between earning zero percent over the next five years in government-printed paper dollars, or earning zero-percent interest in a hard asset (like gold) that can't be printed, which one makes more sense for you to hold? 
 
 
Site owner    Isaiah 6:8, Psalm 91 
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Offline KensAuto

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Re: Time to buy Gold (and Silver)
« Reply #1 on: January 24, 2015, 02:28:49 PM »
Way above my pay grade, but I got the jest of it...I think. Too bad I'm broke right now.
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Offline Flyin6

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Re: Time to buy Gold (and Silver)
« Reply #2 on: January 24, 2015, 02:36:49 PM »
Way above my pay grade, but I got the jest of it...I think. Too bad I'm broke right now.
I read this stuff all the time...for years now...
Site owner    Isaiah 6:8, Psalm 91 
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Offline KensAuto

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Re: Time to buy Gold (and Silver)
« Reply #3 on: January 24, 2015, 03:26:53 PM »
And that's why you're the boss. :)

...no, I don't put anyone higher than me, on a pedestal so to speak, being that all men are created equal...but...

...I also know for a fact that there's a whole lot of men (and women), that are a bunch smarter than me!

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Offline cudakidd53

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Re: Time to buy Gold (and Silver)
« Reply #4 on: January 12, 2016, 03:21:50 PM »
HEY-

Gold and Silver will be cheap until the end of the month..........because I just ordered some that won't ship until then and that's my track record.........I purchase and the price drops!  LOL!  Seriously though, given the state of affairs, should anyone be contemplating the purchase of such hard assets, I cannot fathom how the World can be so messed up and metals prices still hover around their recent low points!

 :o
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"When you're dead, you don't know you're dead. Hence, dealing with this fact is not difficult. It is only hard for those still living around you.....It's the same when you're stupid."

Offline Flyin6

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Re: Time to buy Gold (and Silver)
« Reply #5 on: January 12, 2016, 04:58:54 PM »
The low prices are due SOLELY to manipulation. The upward pressure of precious metals must be enormous and very costly for someone.

Given the emerging financial conditions, Gold has, I mean HAS to be north of $2K an ounce and possible multiples of that.

I haven't stopped buying it!

I have dissolved all my equity positions and am keeping record low (for me) amounts of cash in the till. I was keeping chunks of $5,000 in 20's in the savings. I have been converting all of that into gold and silver though.
« Last Edit: January 12, 2016, 05:00:39 PM by Flyin6 »
Site owner    Isaiah 6:8, Psalm 91 
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