Investor’s View Magazine
The Gold Bull Market Provides the Perfect Time for Gold Stock Picks
By Mike Swanson
I have been a professional investor and trader since the early 1990's and I've helped thousands of investors just like yourself profit from stocks that the insiders won't tell you about. In the first quarter of 2002, I began to recommend gold stocks as a profitable investment to my subscribers.
Why did I recommend gold stocks when nobody else would? Was I putting my track record on the line for nothing?
I believed then that we were on the verge of a new bull market in commodities and Gold. Since my recommendation, Gold has risen from under $300 an ounce to well over $800 an ounce, providing my subscribers and myself with incredible life-changing profits. That's all fine and well for us...
But the good news is.... You could still make a killing in gold stocks.
The move in gold is only just beginning. That's right, I said it.
How can I be so sure?
Two reasons... First, Gold tends to trade opposite to the US dollar and the Dollar is now in a long-term secular decline. This trend began a few years ago but it's now picking up steam as the US Federal Reserve lowers interest rates in response to weakness in the economy and volatility in the stock market and credit markets.
And second. Seasoned investment pros have been diversifying out of the US dollar and traditional investments and into gold.
Just two years ago, Warren Buffet, the most famous investor in America, announced that he had bought a basket of foreign currencies to profit from a coming decline in the dollar. Although he didn’t disclose the size of his position he called it “massive” and noted that it was the first time he ever bought a single foreign currency.
You and I both know Buffet has an uncanny habit of making money in the stock market. In May of 2002, he bought $600 million dollars worth of puts on the S&P 500 that exploded in value when the stock market tanked later that summer. He is now warning that an impending Dollar crisis could last for years.
“Our country’s net worth so to speak, is now being transferred abroad at an alarming rate,” he said. “In effect,” he warned, “our country has been behaving like an extraordinary rich family that possesses an immense farm. In order to consume 4% more than we produce – that’s the trade deficit – we have day by day, been both selling pieces of the farm and increase the mortgage on what we still own.”
It is time for you to escape this dollar pitfall and discover the profit potential in gold stocks. Well run gold companies that are expanding their production are experiencing earnings growth of 100% a year and as a result their stock prices are rising EXPONENTIALLY. I seek to discover emerging companies like this that are poised to become the next big gold play.
It is time for you to know about these stocks ahead of the crowd.
We discovered Desert Sun Mining when it was trading at less than a dollar a share before it got bought out for over $7 a share two years later. If you were a subscriber you would have been able to own Desert Sun Mining and would have experienced a seven fold return on your money. That is not all. You also would have known about Wheaton River before it got bought out by Goldcorp and many other big winners.
Gold stocks are indeed on the rise. Over the past few years an investment in a basket of the best gold companies would have outperformed the S&P 500 or DOW. This trend is actually going to accelerate going forward.
The accumulation of debt in the United States cannot continue much longer. In the last century the ratio of debt to GDP hovered between 120% and 160%. In 1929 debt rose to 260%. Now the ratio of debt to GDP is at a mad 300% and has been growing over the past year. Something has to give and that something is going to be the dollar.
Economist Mark Thornton, author of Tariffs, Blockades, and Inflation, agrees. He thinks investors need to pay attention to gold. "There is always a bull market somewhere in the economy. It could be junk bonds, real estate, a particular currency, tech stocks, foreign markets, land, blue chips, or small caps, " he says, "Today we are in a bull market in gold and commodities. Oil and gas are at all-time highs while metals such as silver are up more than 25%."
Now is the time to invest in gold stocks. Those who get in early reap the benefits.
I urge you to get your free subscription to the WallStreetWindow weekly email update and discover the power of gold for yourself. This weekly email goes out to over 90,000 subscribers of all walks of life, including investment advisors, mutual fund managers, hedge fund managers, college students, and day laborers.
And if you subscribe in the next 24-hours you also will receive How to Pick Gold Stocks - a comprehensive guide to profiting in this gold bull market.
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