-- Posted Thursday, 2 November 2006 | Digg This Article
The Mining Speculator
www.miningspeculator.com
After having to bear a brutal five months of a correcting gold market, the tide has now shifted and the next run to higher ground is underway. In other words the train is once again leaving the station and the bargains we have seen these past few months in the physical metals and mining shares will soon be a thing of the past. This looks like the last chance to jump on board as the train begins to gather momentum.
The telltale signs that our bull market is about to kick and roar once again are there to see. These signs include the following:
- Funds coming in to buy physical metal and quality mining shares that are grossly undervalued.
- Short positions suddenly being covered
- Stronger seasonal physical demand than normal from India
- Oil and gas prices on the rebound
- Smart money investors going back into precious metals
Both the physical market and the paper representations of gold all appear to be moving at the same time. This is a strong signal that the volatility to the upside this time could be significant. I have been saying for long time that we should expect to see greater volatility in both directions as this bull market in gold grinds forward. And don’t forget that we like the grind. The grind is our friend. These up and down periods are tailor made for savvy investors who like to buy low and sell high. The other point about enjoying the grind is that if gold suddenly blows the lid off the market, then we are probably going to experience severe economic consequences not just in the U.S. but worldwide. This is not good for anyone. We want things to keep grinding along the way they are so we can still have life, liberty and the pursuit of happiness. The timetable for the good life though seems to be on a rather short fuse at the moment. You want to put your house in order before the bang comes.
Putting your house in order should include getting the huge leverage in junior mining stocks, paying off debt, buying physical precious metals as the ultimate, safe bank money, and stocking up on cheap easily accessible dry goods and food stocks to weather the storm.
Another gauge that has been a reliable sign for me that our market in ready to run is the activity at AmeriGold, the physical bullion dealership I own for helping clients diversify their portfolios with hard assets. Over the summer months things were rather slow, but in the last two weeks, the phone is suddenly ringing off the hook with investors looking for safe haven assets. Many of these phone calls are from people who have never purchased physical metals before in their investing lives. Why are these individuals suddenly coming into the gold, silver, platinum and palladium markets? When I ask them what prompted their call they all say the same thing. They feel that something is wrong, even though they can’t quite verbalize all the exact reasons. They see the political situation as hopeless and are searching for truth. That search leads them to call us at AmeriGold (1- 800 574-0047) to learn more about precious metals investing. If you don’t have a diversified portfolio with some hard assets, I believe you are financially naked and unprepared to meet with the coming circumstances in the financial world. The best time to buy is before it moves to higher ground. In my opinion I see gold moving towards a new high (over $729 an ounce) in the next few months, possibly even before the end of the year.
If you have ever been on a train platform when a train begins to leave the station, you know there is a brief period that you can jump on before the train gathers too much speed for a safe entry. We are now at that brief window of opportunity to still jump on. Are you ready?
-- Posted Thursday, 2 November 2006 | Digg This Article
