-- Posted Thursday, 15 February 2007 | Digg This Article
Well, gold is doing quite well going into the end of this week. Can you say “bull market?”
What do you look for in a gold stock or any resource related company? Good question to ask. There are two things really you’re looking for. And if you can follow these two principals you will have a good foundation as you further narrow your choices.
Dave,
“I am a 45 year old hard working middle class HR manager with three children.” “It used to be I dutifully put as much money into my 401k as my employer would match, directing it into a global mutual fund. Now this old strategy seems ridiculous. The more I read the more I am afraid for my family and how the growing monetary turmoil beneath the surface will impact our lives. Investing in precious metals is clearly the way to go.”
Kevin F.
Folks, you’ve got to help me! I’ve lost it. When I go to the coffee shop now I order a latte with soy milk. Yes, I am not kidding. I have begun ordering the blasted thing in place of a normal cup of coffee. And I actually like it. I apologize as I never saw this coming.
Back to gold!
First of all you want to buy into a sector that is in itself in a long term established upward trend. Second you want to make sure the individual stock you are considering is in an upward trend. Do you want to buy a stock just sitting there and presently showing no signs of life? You may do this if you are confident the stock is a good value and an excellent long term gamble and you are confident that it will eventually climb higher.
But why not wait before you buy it. If it is not moving at all yet maybe it’s best to find a stock already taking off and heading higher. If a company you are really desirous to buy into is still just sitting flat let it sit there and only buy it after it has begun to climb. Look for those shares that are already moving and climbing higher. Keep your money working. Don’t let it sit there collecting dust.
Dave,
“The evening news? It's total mind control.” “American Idol? God, what a nauseating TV show. Can't stand it myself. But gold? I bought in late 2001 at $290 an ounce, and again in 2006 at $622 and am holding. Bought silver (late) at $11.80 and am holding. I recommend you get off this phony war emotionalism crap. Just focus on the dollar.”
Sincerely,
Rick H.
Too many investors will buy a stock that is just sitting there and they buy into it and then wait for it to start moving. But how long are you going to have to wait? Days? Months? Years? Sure, it’s going to move some day but let’s keep those speculation dollars working. Wouldn’t a better allocation of money be to buy something already moving higher with good established momentum?
David,
“Your point is well taken about taking some profits off the table every now and then. However, some of us have a longer term perspective and are willing to wait patiently for doubles, triples, quads, or five baggers.” “Best wishes and good luck with your investing (or should I say trading?)”
Jim M.
Then keep an eye on the stock you want to buy that is just sitting there, wait for it to begin moving, then buy it. Keep your dollars building wealth at all times. Don’t leave it sitting there in your account gathering dust for months or so in a stock that hasn’t yet taken off.
So, in summary look for 2 things in a stock.
Make sure the sector trend is strong and second buy individual stocks that have already started climbing higher. Keep your money working for you. Don’t give your money a free ride. Make it work for you. Don’t let it collect dust.
David,
“Been reading your articles on the xxxx site for years now. Love your style even if I don't always agree with your political stances.” “…as a personal banker I am always preaching to young people about the Rule of 72 and the power of compound interest. The advice you give about taking smaller profits instead of counting on the 10-bagger is wise.” “I sure wish you big shots with your huge return averages would have a mutual fund with your top 10 or top 50 gold and silver or uranium companies and do the trades when you feel the timing is appropriate. Even if the expenses were relatively high it would be worth it. That way you can get rich off the expenses paid to you by us small investors while you make us 30% returns each month. Okay, even if you can bring me 30% returns per quarter I would be in. Heck, get me 30% twice a year and I'm still interested! This gold and silver bull is a once or twice in a lifetime opportunity…”
“I don't want to miss out on this time; I may not live to see the next one. How I do during this bull will determine if I work till I get Social Security and Medicare or if I can retire while I'm still young enough to enjoy life with a healthy body.”
Sincerely,
Bob K.
Bob, look a little harder. There are funds out there that are structured the way you mention. Doug Casey just highlighted 3 of these types of entities in his last issue. Bob, I strongly suggest for you to subscribe to Casey’s newsletter as you are missing out on valuable info you need to be aware of while investing in the precious metals bull market.
“Where is this system going? Where is it likely to be heading, in the twenty-first century…?” Morris Bermen, The Twilight of American Culture
Where is our civilization today headed? Good question to ask.
“World-systems,” writes historian Janet Abu-Lughod, “do not ‘fail’; they ‘restructure.’” Morris Bermen, The Twilight of American Culture
Another word that defines ‘restructure’ is the word “trend”. And this is what I talk about over and over – trends. Observe the changing financial and economic trends occurring today. And I say you better study and learn these trends or you will wind up going broke.
Hi David:
“I'm not onboard with your 2/9/2007 concern about the number of stocks one has. I think that one's basis in the stocks is the more important factor.” “I've never sold an entire holding just to take a profit if the company has speculative merit.” “…if I end up with 60 stocks, but 30 are at a zero basis, I'm only managing the 30 core. I'm not going to buy more of the zero basis stocks, and won't sell the free shares until Maria Bartilomo is doing her show from the Vancouver Exchange. Thanks,”
Paul H.,
Virginia
P.S. Real estate in this DC suburb was down 15% in 2006.
And what today is the developing trend? Hard assets, including gold and uranium, are continuing to come into favor and respect. And this trend will only grow as this century continues to unfold. Read the following below folks as I want to share something.
David,
“I am always skeptical when you publish a letter from a reader whom we assume is a free market advocate or else why would he be reading you and concludes his essay by saying he is hoping for a Democratic win the '08 US elections.”
Kindest regards
Rich C.
Listen folks, just because I post a democrat’s email doesn’t mean that I agree with the readers’ political philosophy. I am determined to post all sides views as that I believe makes a more interesting letter. Don’t you agree with me? No censure here.
Gold Letter emails brief reviews of undervalued gold, silver, uranium and other resource stocks that are under valued and poised to rise.
Our top 10 best performing stocks are up over 2,100% and our top 50 best performing stocks are up over 500% - 60 minute real time delay when the markets are open. The top 50 represent over 50% of all Gold Letter's recommendations since inception. Gold Letter is the only newsletter that tracks and publishes this kind of exact data on their recommended stocks. You won’t find this precise record keeping provided with any other newsletters.
Click here to order Gold Letter
And a faithful reader comments below!
Hi Again David,
“I am a faithful reader of your issues because you include insights from your readers that allow a glimpse of the average American viewpoint without the government manipulation and media filters. I think we should also address the anatomical issues involved in these same markets.” “IF YOU DON'T SEE THE INFANCY OF WWIII IN THE MIDDLE EAST...OPEN YOUR EYES. If you don’t intend to invest in silver and gold at all....kiss it all goodbye.”
Rob F.
Do you guys (& gals) know who Alf Fields’ is? Anyway, Al is an astute analyst who spends his venerable years trotting the globe looking for wisdom. Alf is one analyst who often is right on the money and very much worth listening to.
Alf Field - “The time has come to talk about the imminent major upward surge in the gold price. The stars are aligned, the fundamentals are in place, the technical situation is positive and the Elliott Wave analysis suggests that wave 3 (the strongest wave) of the current sequence is underway. The gold price should soon move to new highs for the current bull market.” “…sharply higher prices ahead.” “The near term target price for gold from the Teacup and Saucer base is approximately $760, a level that would accord well with a possible peak for the Elliott wave 3 of wave I, the wave that is presently underway.” “In Update X it was explained that the likely peak of wave I would be $870, from which point a 16% correction should occur.” “Consequently we can be reasonably certain that this correction is the first of the 8% minor magnitude corrections expected on the way to approximately $870.” “It is comforting to see the 8% correction in place as it is additional confirmation that the $560.7 low last October was indeed the low point of the correction from May 2006. It also confirms that the action since October has been the early part of a major new upleg and a continuation of the gold bull market.” Alf Field, Click
And further confirmation that gold is on its next leg up?
Roger Wiegand – “Trader Tracks sees new and powerful fundamental forces for gold and silver.” “While difficult to measure accurately, precious metals global awareness is now entering some new doors offering enormous market purchasing capacity. As gold and silver propel their prices above $740 and $15.20 recent highs, we forecast a literal explosion in new buying across the board.” “As they say, timing is everything and we cannot suggest a better chance than now to enter these markets with the normal precautions to participate in what we feel will be the largest precious metals market in recorded history. Please remember, gold would be priced today near $2,000 per ounce if it were adjusted for inflation.” –Traderrog
Click
Don’t forget to send me an email. I’ll post it if I like what you have to say. Can you say, “Make it interesting?”
David Vaughn
Gold Letter, Inc.
David4054@charter.net
The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. Authors of articles or special reports are sometimes compensated for their services.
© Copyright 2006, Gold Letter Inc.
-- Posted Thursday, 15 February 2007 | Digg This Article
