Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Gold Correction Is Here

Commodities / Gold and Silver 2016 Mar 12, 2016 - 07:53 PM GMT

By: DW

Commodities

Ben Morris writes: The price of gold is up 21% since the middle of December... from $1,051 an ounce to $1,270.

That's its biggest rally since gold peaked in 2011...
 
And historically, such big rallies are almost always followed by corrections – periods when prices fall.

 
That's why conventional wisdom says, "If you missed the initial rally, buy on a pullback."
 
"Buy on a pullback" is good advice for lots of people. If you own some gold and have a little money in gold stocks, you'll likely be able to add to your positions soon, at better prices than today's.
 
That's what I plan to do personally. And that's what I recommended to readers of my newsletter, DailyWealth Trader (DWT).
 
But the biggest risk you face with gold today isn't buying just before a sharp correction. It's the possibility that there won't be a significant correction, and that you don't own enough gold... or worse, any at all.
 
I consider physical precious metals – especially gold and silver – an important part of any "catastrophe-prevention plan." I like to think of them as an alternative form of savings.
 
They're not a replacement for cash. I suggest holding cash, too. But cash has a major flaw... Governments can, and do, print massive amounts of it.
 
Just as creating more shares of a company makes every other share less valuable, adding cash to the existing supply makes it less valuable, too. Over time, your cash savings buys less and less.
 
On the other hand, gold and silver have been used as money for thousands of years. Governments can't print gold and silver on a whim, as they do with paper currencies. So people turn to these metals when they're worried about the value of their cash declining.
 
Plus, now negative interest rates are spreading throughout the world... which make it harder than ever to save.
 
As Steve Sjuggerud said in the latest edition of his True Wealth Systems advisory, "The logic is simple... When both gold and paper pay you zero-percent interest, you should prefer gold over paper."
 
With that in mind, let's take a longer-term look at gold. The 15-year chart below shows the big bull market that took the price of gold from around $250 an ounce... up to $1,900 an ounce... and back down to around $1,270, where it is today.
 

If you don't have at least 5% of your wealth in precious metals – and you're not buying because you're waiting for a correction – take another look at the chart above...
 
This IS the correction. It's time to buy gold. While you're at it, buy silver, too. It's cheap relative to gold. You can also buy the physical gold and silver closed-end fund ("CEF"), which currently trades at a 5% discount to the value of the gold and silver it holds.
 
Trading gold stocks is a little different. They're not stores of wealth, like physical gold. But they can produce extraordinary returns when gold prices rise.
 
If you already own gold stocks, congratulations. You may want to wait for a pullback before adding to your positions.
 
If you don't own any gold stocks, you should consider "dipping your toe in" today. Buy some now... and hopefully you'll get a chance to buy more at better prices.
 
Gold will pull back at some point. But there's no guarantee it will pull back soon... And there's no guarantee that when it does, it will come back down to today's levels or lower.
 
This could be the best day to buy gold for the next 20 years.
 
Regards,
 
Ben Morris

Editor's note: When it comes to making a fortune in gold, no one is better than John Doody. His one-of-a-kind strategy has led to huge gains... no matter what gold is doing. From 2001 to 2015, while gold stocks fell 12%, his strategy returned 369%. And during the depths of the financial crisis from 2008 to 2010, John's strategy outperformed gold bullion by 11 times, turning every $10,000 into more than $106,000.
 
Right now, John is offering a special, limited-time deal for Stansberry Research readers. Learn more about this offer – and his trading system – right here.

Source: http://dailywealth.com/3224/the-correction-in-gold-is-here

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

Customer Service: 1-888-261-2693 – Copyright 2013 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in