Gold prices are down 26% and silver is down 45% over the
past two-years and gold experts say the worst is over. Are they
Here's just a brief summary of their hilarious views and
Gold's Uptrend is Still Intact: Peter Schiff - Yahoo! Daily
Ticker (Dec.6, 2012)
Gold at $5,000 and beyond: Peter Schiff sticks to his call -
MarketWatch (Feb.13, 2013)
James Turk ups his $8,000 an ounce peak gold price forecast to
$11,000 - Arabian Money (Jan. 6, 2013)
Hedge Fund Billionaire John Paulson Lost $736M In Second Quarter
Gold Bloodbath - Forbes (Aug.15, 2013)
Should it really surprise us that stubborn experts have been so
badly wrong about the direction of bullion prices?
The fact is they ignore every important technical and
fundamental data point that contradicts their bullish views.
Plus they have a heavily vested interest in being bullish on
gold (NYSEARCA:GLD) and silver (NYSEARCA:SLV) because it's good for
their businesses. Schiff and Turk both have large marketing
enterprises that sell physical bullion to the public. Paulson rakes
in hefty fees for making quarterly appearances about why he's still
bullish on gold.
Meanwhile, as their customers continue losing money, gold
experts are laughing all the way to the bank.
How do stock valuations compare today vs. the dot
The uncomfortable truth is that gold prices have been in a bear
market since 2011 and gold investment demand has crumbled. Anyone
that's bought and held mining stocks (
) or physical gold and silver bullion over the past two years
probably knows that much.
The Truth About Gold Demand
Is gold demand really up? Actually, it's not. Over the past year,
aggregate gold demand is down 23% and is led by a a massive 68%
decline in investment demand along with a 62% collapse in buying
from central banks. (See table below)
The only two categories that show increasing gold demand is
jewelry and bullion bars/coins and both areas are closely tied to
consumer behavior, especially in Asia. Is this really bullish?
The fantastic theory that frenzied buying of physical bullion by
Chinese and Indian consumers is a bullish signal is
laughable. And so are many colorful conspiracy theories about the
manipulation of the gold market.
In case you never got the memo, consumer sentiment is always a
contrarian indicator, as the gold experts, once again failed to
mention. When besides never would a prudent investor ever make an
investment decision based upon what the freakish masses are doing?
"Common sense and careful logic show that it is impossible to
produce superior investment performance if you buy the same assets
at the same time as others are buying," said the great Sir John
That means the true sign of any market bottom - gold included -
isn't panic buying, but panic selling. (See Ezekiel 7:19) And by
that harsh measure, the gold market has yet to see its capitulation
Profiting from a Gold Shock
Contrary to what the very wrong gold experts have said all along,
the ETF Profit Strategy Newsletter alerted its subscribers that the
real money in gold and silver would be on the short side.
from Feb.14 we wrote:
"Despite a modestly rising stock market, the Market Vectors
Gold Miners (NYSEARCA:GDX) has lagged both the broader U.S. stock
market along with the SPDR Gold Shares (
) by a very significant margin. At present, GDX trades around
$41.50 and is well below both its 50 and 200 day moving average.
Buy the Direxion Daily Gold Miners Bear 3x Shares (NYSEARCA:DUST)
at these levels. A double digit slide for gold would likely
translate into a 20%+ loss in mining stocks. This scenario offers
some big upside potential for bears."
Since then, GDX has slid 31% and we exited our Feb.14 DUST
trade with a +29% gain. But that's just the tip of the
In that same report, we told our subscribers to buy JUN 40 GDX
put options at $190. In early June, we sold the GDX put
options for a +525% gain at $1,200 per contract.
Our GDX trade was a grand slam, but forget about what already
happened. What's coming next in the gold market will shock the
Winners are On the Right Side of the Market
Our examination of the precious metals market points a very high
profit opportunity for investors and traders who are 1) on the
right side of the market, and 2) who are correctly positioned in
the right investments.
The Great Gold Crash of 2013 is one of the biggest investment
themes the experts never saw coming.
Profit Strategy Newsletter
and Technical Forecast cut through the daily reams of
misinformation by telling subscribers what to buy, what to sell,
and when to do it. Through mid-2013, 78% of our time stamped
Weekly ETF Picks have turned a profit.
P.S. Lightning strikes again: Our 8/1 to 8/6 trade in DUST
resulted in a 23.5% one-week gain.
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