Eureka!
I have to admit, even I feel like I talk about gold too much.
This feeling gets reinforced when I show Burgess, my wife, what I’m going to write about for the week.
When she sees the “g” word, she usually sighs and says, “Again? Why don’t you write about something else, like your Market Probability Strategy? After all, that strategy hasn’t been wrong about the direction of the stock market yet and its’ compounded returns have been 16.5% for the past ten years.”
I love it when my wife talks that way.
And she’s right (yes, I can admit to that too). My Market Probability strategy has saved the 401(k)s, IRAs, brokerage accounts and, quite frankly, the retirements of many of my clients. Underneath the hood of this strategy is an algorithm that measures the probability of making or losing money in the stock market.
My conversation with you today is not about The Market Probability Strategy, but I will write about it next week and I will include a video.
Gold is in a secure bull market so I want to talk about gold….yes, I know…again.
You hear me say this a lot, “Get the big picture right and get EVERTHING right. Get it wrong and get everything wrong.”
The investment world is in a long-term physical asset bull market. And the number one asset to own during a physical asset bull market is precious metals. Even though some of the stocks in my model portfolio are beating the stock market, stocks like SHPGY, DVA and MO, my attention still comes back to the big picture.
The big picture has not changed in ten years and today the big picture is the same:
Paper currencies are dying;
Gold and silver are rising;
Western countries are drowning under their debts;
China/India/Brazil are rising as economic equals;
Wages in the West are falling;
Wages in the East are rising;
Housing is still falling almost everywhere.
Basically, it’s all the same stuff I’ve been talking about for years.
So here’s the deal, gold hit a record $1,610 intra-day this past week in US Dollars and the response? People yawn.
This rise is just the beginning. We could possibly see $1800 an ounce gold by January 1st 2012. At current prices that is only a 13% rise.
Since Fed Chairman Ben Bernanke announced QE2 on August 27th 2010 gold has increased in US Dollar terms by 28%. AND gold has gone up in price against every paper currency in the world.
And Bernanke is already hinting about printing more money in QE3 which would drive the price of gold up even more.
So what about you and your investments?
If you have not yet purchased gold or silver because just the thought of it makes you reach for a barf-bag, here is your wake up call. If you are waiting for the day that it is going to feel easy, it will be too late.
Getting rich involves understanding how your own emotions keep you from doing what is best for your money.
The fact is, buying and owning an investment that the general public does not own feels pretty bad some times. And it especially feels bad if this investment is falling or going flat while the “conventional” investment is going up.
I realized investors needed to be around other investors who were doing the right things with their money even if there was discomfort. I started my own investment peer group in 2003, Investor’s Elite.
If you have not purchased gold or silver now is the time. And if you have only purchased a couple ounces now may be the time to get serious about protecting your portfolio.
If you want to know more about this peer group click here.
Be patient. Buy some gold and silver. Get richer with each leg up in precious metals. Find gold in your portfolio.
Together, we are growing and protecting your money,
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