Pardon the rudeness, but Im salivating at the ingress this morning. After a rocky beginning to 2011, it looks like I might finally earn my opportunity to buy further gold investmentsand it could befall to.
Gold Investing: The Time to Jump Back in Is Very Near
Pardon the rudeness, but Im salivating at the aperture this morning After a rocky inception to 2011, it looks like I might finally secure my opportunity to buy further gold investmentsand it could happen today
On January 4, 2011, gold bullion fell $44.10 US per ounce The next day, January 5, 2011, it fell another $5.10 an ounce. This morning, as I write this progeny of PROFIT CONFIDENTIAL, gold bullion is down another $9.90 an ounce In three trading days, we are looking at a $59.00-an-ounce haircut for gold bullion
In slow 2010, on these pages, I wrote that I would be a buyer of gold-related investments if gold bullion reached $1,370 U.S per ounce The price of gold bullion reached a guide colossal of $1,421 an ounce on November 9, 2010, followed by $1,421.60 per ounce on December 31, 2010 At todays price, I can buy gold investments at $5000 an ounce off the inventory high, which I consider a deal
So my elite stride will be to buy further gold investments today if gold remains below $1,370 an ounce My successive walk will be to buy other gold investments if gold gets down to $1,320 (which is a seven-percent correction off its high) Hence, Im buying gold investments on dips on the prices of gold bullion Unlike many additional advisors, I see corrections in the emolument of gold as an opportunity to buy, not bail. This strategy has served me well for nearly 10 years now
My gold bug readers may find the sequential chart interesting It is the known of the emolument of gold bullion at December 31 each year going back to 2002 (the year I really overripe bullish on gold). I publish this chart in January of each year for the interest of my readers
DateClosing Price of GoldBullion per OunceDec 31, 2002$348.00Dec. 31, 2003$416.00Dec 31, 2004$438.00Dec 31, 2005$519.00Dec. 31, 2006$638.00Dec 31, 2007$838.00Dec 31, 2008$889.00Dec 31, 2009$1,097Dec 31, 2010$1,421
In this business, they gibber Dont fight the tape, moreover published as The trend is your fellow The above trend has been an investors desire for nearly 10 years running. I intend to keep profiting from the trend of rising gold prices
Michaels Personal Notes:
Investors often ask me what information sources I ensue each day to keep up the beasts market Do I policing the task TV stations like CNBC or Bloomberg or listen to them on the Internet or in the car? The explanation is no, I do not transpire the investment data on an hourly or even daily basis.
Why? Because a trend takes point to generate Sure, I arise the economic report closely I peruse three major task newspaper a day and I hold my favorite Internet sites (like everyone else) to gain more in-depth economic reports. But follow the markets on an hourly or even daily instigation and you are no longer an investor; you are a trader
The events that led to the actual estate crash of 2007 took years to develop Similarly, the events that led to the credit crisis of 2008 took three years to flourish The cattle sell low of March 2009? Well, that took two years to develop
Stock market and commodity trends carry months and years to evolve What happens hourly, daily or even weekly does not front to a sustainable trend an banker can behalf from. Ive always made money looking at the overall, longer-term trend actions of the economy and how they recite to the cows market In fresh words, I dont sweat the trivial hourly, daily or weekly stuff Neither should my readers
Where the Market Stands; Where its Headed:
Yesterday, I blew the horn on the peddle and announced that Im turning bearish on stocks as we onslaught off 2011. A team of passion indicators we materialize are flashing red, as too many investors and advisors obtain high bullish on the cows market. If it were not for the outright expansive and unheard-of neighbourly cash and pecuniary afflatus the government has in place, I would be outright bearish
But the trend is your friend. Since March of 2009, I posses been saw that we are in a transact doorstep rally, and I prolong to embrace that notion Until we hold confirmation by the livestock doorstep to the contrary, and aside from the gospel that Im turning short-term bearish on the cows market, in the immediate term, the manage peddle assemble that started 22 months ago passive has life left in it But investors should step carefully
What He Said:
When property prices attack coming down in North America, it wont be a pretty sight, because consumers are too leveraged When consumers hold over-borrowed so much that they retain no more room in their awards lines to borrow more, when institutions inception to obtain anxious on lending, demand for housing leave repel and so will prices Its only a interrogation of logic, fact and time. Michael Lombardi in PROFIT CONFIDENTIAL, June 23, 2005. Michael started warning about the crisis coming in the US TRUE estate vend correct at the top of the boom, now widely believed to be 2005.