Page 1 of 8
Trading Gold Stocks: Now is the Time so Get Educated. In this August 2012 edition of The Panama Insider reports, you will discover: Why it is time to trade paper Gold ETFs- August 14, 2012… Three Charts every gold stock trader should see… If you are ‘crisis investing’ we present the Swiss alternative to GLD... Gain the unfair advantage with Trader Tools that help you better time your entries and exits…. Let us begin with today’s expert article and charts, quickly leading on to excerpts from the physical gold Swiss experts discovering who is their favorite Gold ETF, and finally wrapping up with the Panama Insider research on cutting edge technologies that help good traders make serious cash.
Fast 200% Gains Possible: Gold Stocks Are Record-Cheap By Dr. Steve Sjuggerud Tuesday, August 14, 2012
The last time gold stocks were this cheap, they soared 172% in eight months… Today, by my favorite measure, gold stocks are record-cheap again… They have only been this cheap once in the last decade – and that was in late 2008, when gold stocks (as measured by GDX, the main gold-stock fund) bottomed out at $17. Just over two years later, shares of GDX reached $60 a share, for a phenomenal profit. The stage is set for similar gains today… ----------Advertisement--------Are you ready to bunker a portion of your portfolio into Tier One Assets? Need liquidity and exit strategy? You don’t have to be a financial expert to understand the basic ways you can hedge against this economic collapse, but maybe you would like suggestions and resources on how to obtain liquidity once the storm passes. Is it time? Well, if you didn’t make 25% last year, you DID lose that much buying power, never mind profits. While your dollar still has some buying power left consider getting help and vetted contacts for farming land, distressed businesses or income-producing real estate projects, physical metals, defense metals investments, and transparent managed paper trading where you deal direct with the broker. We don’t handle OPM (Other People’s Money). Find out more here.
Page 2 of 8
-------------------------------Take a look at the following chart. It shows the performance of gold versus gold stocks:
You can see how gold stocks crashed in the financial crisis in late 2008. That drove them to their biggest discount to the price of gold in the last 10 years – until now. The astounding part today is, it is NOT late 2008. People are NOT selling all their investments like they were back then. Instead, investors today have simply given up on gold stocks. Gold stocks recently hit the same discount to gold as we saw back in 2008, according to my favorite measure of gold-stock value. That is what I like to see. My favorite measure of gold stock value was created by John Doody – the founder of the Gold Stock Analyst newsletter. John tracks dozens of gold producers in his newsletter. His measure of value takes two things into account. He sizes up: 1. The stock market value versus the dollar value of the company's reserves in the ground. 2. The stock market value versus the dollar value of the company's annual production. In my mind, this analysis makes total sense. It is like the traditional value metrics (price-to-book value and price-toearnings), but it specifically applies to gold-producing companies. Importantly, this "value" number John comes up with for gold stocks in general has proven to be remarkably accurate. When it says gold stocks are overvalued, they go nowhere. And when gold stocks are undervalued, you can make incredible returns. John only crunches this number monthly. As of August 1, gold stocks were 35% undervalued. So right now, gold stocks have all three things in an investment idea… I like to see it CHEAP, HATED, and IN AN UPTREND.
Gold stocks were undervalued on August 1. Investors have given up on them. And it looks like an uptrend is in place… GDX is up about 10% since July 23.
Page 3 of 8
This is an exciting opportunity to set up a trade with incredible risk-versus-reward characteristics. You can set a stop loss at the recent low of $40.70. (If it falls below that, we are likely wrong on this idea for now.) That way, your potential loss is less than 10% from today's price. Meanwhile, your upside potential is dramatic. If history repeats and we see a rally like 2008-2009 in gold stocks, you could more than double your money in just eight months. Remember… the last time gold stocks were this cheap, they soared 172% in eight months… and made investors a few times their money in two years. Gold stocks are coming off record-cheap levels. An uptrend is in place. And you can set up an excellent trade, with limited downside and large upside potential. It's finally time to trade gold stocks again… And this is the way to do it… Good investing, Steve
Further Reading: Jeff Clark has been looking for a summertime gold stock rally. And now, three indicators are telling him the time has come… "So far this year, it's been tough to make money owning gold stocks," Jeff says. "Every rally has been weak. Every subsequent decline has been steep… And we now have a low-risk, high-reward trading opportunity in front of us." Get the details here: Three Charts Every Gold Stock Trader Should See.
Three Charts Every Gold Stock Trader Should See By Jeff Clark, editor, S&A Short Report Friday, August 10, 2012
Everything is falling in place for a big gold stock rally... So far this year, it's been tough to make money owning gold stocks. Every rally has been weak. Every subsequent decline has been steep. The big gold stock fund, GDX, for example is down 25% over the last 12 months. This decline has made gold stocks very cheap... and ready to rally. Let me show you what I mean...
Page 4 of 8
We'll start with one of my favorite sector indicators. The precious metals sector bullish percent index (BPGDM) generates a buy signal when it drops into oversold territory (below 30) and turns higher. Late last month, it generated a buy signal, and it has continued higher since then. Take a look...
The blue circles indicate the buy signals we've seen over the past year. The signals that triggered in 2011 generated large gains for the gold sector (and for my S&A Short Report readers). We haven't had the same experience in 2012. The buy signals this April and May never reached their potential. We settled for much smaller profits than I had originally anticipated. But this time, I suspect the buy signal will be stronger and carry the sector much higher. And we have two more indicators that argue for higher gold stock prices. First, there's the following chart, which compares the action in gold stocks to the action in gold... For most of the past year, gold stocks have lagged the action in gold. So this ratio chart has been falling. For a few weeks in May, though, gold stocks outperformed the metal. They've been outperforming for the past two weeks as well.
Page 5 of 8
The best time to own gold stocks for the intermediate term (several months) is when the stocks are outperforming the metal. In other words, you want to own gold stocks when this chart is rising. That's the case today. Finally, we also have this bearish development in the U.S. dollar index... The U.S. dollar just broke down from a bearish rising-wedge pattern (the blue lines). At a minimum, the greenback should fall toward the first red support line at about 81. But there's a pretty good chance the dollar will give up the gains it's made since March and drop all the way back down to just below 79.
Page 6 of 8
A falling dollar is typically bullish for gold. And a rising gold price is typically a good thing for gold mining stocks. Nothing is guaranteed. But these charts are bullish for gold stocks... and we now have a lowrisk, high-reward trading opportunity in front of us. Best regards and good trading, Jeff Clark P.S. Even though the gold sector is set to rally, it won't be a straight-up "rocket shot." Gold rallies are notoriously volatile, with large swings in both directions. So it's important to properly time the purchases. That's what I specialize in with the S&A Short Report. You can learn more about my trading system – and my strategy with the precious metals sector – here. Further Reading: "If you're bullish on gold, this is an excellent, low-risk area to buy it," Jeff told Growth Stock Wire readers last week. See how one chart pattern tipped Jeff off to a setup in gold offering 10 times more upside reward than downside risk here.
Metals ETFs: What’s better than GLD? GLD is bad, m’kay: (Presentation excerpt from Global Gold, Inc. of Switzerland presented at the January 2011 asset protection conference conducted by Peter Macfarlane & Associates which the Panama Insider coordinated.) 1. 2. 3. 4. 5. 6. 7. 8.
Dependence on the New York Stock Exchange The fund does NOT allow in-kind redemptions of its gold bullion GLD does NOT appear to have storage issues The GLD gold holdings are NOT audited The gold holdings of GLD (if they were any?) are NOT insured The quality of the gold is NOT confirmed The gold is NOT protected from the custodian’s insolvency GOLD does NOT exclude the possibility of leading, short selling or pledging the gold that it (supposedly) has in storage. 9. GLD is NOT protected from the whims of US government 10. GLD is created and run by Wall Street, by JP Morgan, HSBC, and other big financial institutions who have given us subprime CDOs etc. Remember ‘as-good-as-cash” securities… and then the market for auction rate securities collapsed.
Page 7 of 8 Need proof? Here’s a whiff of GLD terms & conditions GLD- No Guarantees. All risks borne by investor! Source: Prospectus SPDR© Gold Trust Gold bars allocated to the Trust in connection with the creation of a Basket may not meet the London Good Deliver Standards and, if a basket is Issued against such gold, the Trust may suffer a loss. Neither the Trustee nor the Custodian independently confirms the fineness of gold bars….. Gold held in the Trust’s unallocated gold account and any Authorized Participant’s unallocated gold account will not be segregated from the Custodian’s assets. If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant. In addition, in the event of the Custodian’s insolvency, there may be a delay and costs incurred in identifying the gold bars held in the Trust’s allocated gold account…. The Trust’s gold may be subject to loss, damage, theft or restriction on access. There is a risk that some or all of the Trust’s gold bars held by the Custodian or any subcustodian on behalf of the Trust could be lost, damaged or stolen. Access to the Trust’s gold bars could also be restricted by natural events (such as an earthquake) or human actions (such as a terrorist attack). Any of these events may adversely affect the operations of the Trust and, consequently, an investment in the Shares. The Trust may not have adequate sources of recovery if its gold is lost, damaged, stolen or destroyed and recovery bay be limited, even in the event of fraud, to the market value of the gold at the time the fraud is discovered. Source: SEC Form 10-K September 30, 2009. The ability of the Trustee to monitor the performance of the Custodian may be limited because under the Custody Agreements the Trustee may only up to twice a year visit the premises of the Custodian for the purpose of examining the Trust’s gold and certain related records maintained by the Custodian. In addition, the Trustee has no right to visit the premises of any sub-custodian for the purpose of examining the Trust’s gold or any records maintained by the sub-custodian, and no subcustodian is obligated to cooperate in any review the Trustee may wish to conduct of the facilities, procedures, records or creditworthiness of such sub-custodian.
Solution: ZKB Exchange Traded Funds The ZKB precious metals ETFs are generally solid… ZKB, the third largest Swiss bank, is financially sound and comes with a cantonal guarantee.
Page 8 of 8
We consider the ETFs issued by ZKB as generally solid:
The fund is (largely) backed by physical metals, “good delivery bars”, as defined by the LBMA All four precious metals are offered: gold, silver, platinum, palladium It is covered by audits and insurance No Leasing and pledging Minimal tracking errors Fees relatively transparent (at least in the unhedged USD classes)
(Presentation authorized for promotion by Global Gold, Inc. of Switzerland)
Now that you know where to buy your gold ETFs, what Broker should you use and how can you better time your entries and exits? Is there a transparent system where I can watch a funds manager trade my account for me?
Texan and Panama Expat Revolutionizes Trading Industry Posted on July 12th, 2012 http://www.howtobuygoldoffshore.com
Improve your trading today…. AlgoHedge is technology designed to enhance the productivity of a trader. The trader brings the discipline, focus, experience, and intelligence, AlgoHedge efficiently provides the trade ideas and trade plan. AlgoHedge:
delivers trade ideas, along with a trade plan (entry, stop loss, and target) provides a clear indication of the short term trend for your symbols helps you decide whether to hedge immediately or wait AlgoHedge watches any number of symbols in multiple asset classes, including custom symbols from the Bloomberg CIX tool.
How RW PAIRS works:
Select your pairs based on market fundamentals. RW Pairs check the correlations. RW Pairs determines a ratio for the spread. RW Pairs sends alerts when signals are generated. The chart displays the RW Profile, which combines Candlesticks with Market Profile based support/ resistance lines, and a proprietary trend indicator. RW Profile is particularly informative for a mean reverting product such as a pairs spread.
You can learn more here. Thanks for joining The Panama Insider. To find out if you qualify for a free month trial of AlgoHedge send your questions to Panamago2girl@hush.com . Make it a Great Trade!