URGENT ALERT
» The markets are crashing…
» Stocks are dropping like lead…
» Safe-haven currencies are melting down…
» Investors are piling into gold…
Top Financial Expert Warns:
"Oil at $50… Gold at $500: This Crisis will affect ALL asset classes!"
Here's how to protect your portfolio…
and DOUBLE OR EVEN TRIPLE your money
in the coming MERCILESS COMMODITIES SELL-OFF!
Dear concerned reader,
Japan recently plummeted 10% in a single day. Much-vaunted "BRIC" market Russia suspended trading – for days. And U.S. stocks are getting routed as I write.
But another, even more serious twist now threatens to wipe out the net worth of even those who thought they were invested in the safest, most recession-resistant asset in the world…
My team and I have just compiled a Special Report, The Ultimate Gold Hedge Options Play.
In it, we tell you exactly what you must do now to safeguard what you have… and insure against merciless commodities volatility.
You'll be able to profit from gold's powerful forward momentum… AND from its even stronger eventual slide.
But let me explain…
Economic meltdown
We're in the midst of the worst stock-market crash in two generations. The World Bank and IMF are sounding warnings of a severe global recession.
What happens if global economies slip into recession? Global demand for commodities declines. It always does when economies slow down. And those entities hoarding it are feeling the pinch of vaporizing profits...
It's not rocket science. As investors and fund managers are scrambling to save what's left of their principal… hundreds of hedge funds, pension funds, and ETFs are forced to sell their better assets to raise capital.
That means a potential – and quickly accelerating– flood of commodities will hit already unstable markets.
The result will be a destruction of commodities valuations. It'll be on a similar scale as we've seen in the financial and real estate sectors – wiping out those investors who sought out the treacherous shelter of hard assets as “inflation hedges.”
The perfect storm
Profits that investors worked so hard to earn have been eradicated in less than two months. It's been a devastating blow. And with the economy looking to contract for at least the next year, those gains are not going to come rushing back anytime soon.
During the same five-year period that the Dow hit record highs, so did gold prices. Valuations increased by over 150%.
But things reversed in October, 2007 when stocks began to decline as gold soared to new records: The weaker the equities market, the stronger the gold market became…
Makes sense, right? When banks are failing, governments are flooding the market with money, and investors are running to safety, gold's price will soar.
With billion-dollar bailout packages pumping cash into the economy and budget deficits soaring, gold prices should be going through the roof.
But there's one fly in the ointment.
It's the U.S. dollar…
You see, the dollar is shaping up to be a great spoiler in the gold game.
Gold should be trading at $2,000 an ounce right now. After all, this is the Big One. The Second Coming. The one huge cathartic event that gold investors have been praying for since gold started plummeting in 1980.
But the dollar isn't dead. It's reversed its decline against the euro and most other currencies. Currencies issued by countries whose economy relied on commodities exports.
Look around: Canada and Australia's export base is plunging with the prospects of global recession.
Europe is at the brink of a deep, drawn-out recession… and their “recovery” of the past years hasn't been much to brag about.
Gold is a speculative commodity. If the dollar continues going up… it's upside is capped. And if funds start liquidating – it's downside is WIDE OPEN…
My urgent, personal warning
I know, recent events are sure to have you rattled. And rightly so. But let me reassure you, I've been in this business for a long time – 20 years, in fact – and I've seen some rotten market conditions. I even predicted this downturn in a book I wrote in 2005, called Hot Trading Secrets.
But I urge you, as grave as these events will prove to be, there are ways for you to protect yourself. Even ways for you to grow your wealth. No matter what anyone else – from politicians to TV news pundits – want you to believe.
What follows is the proof...
But let me introduce myself…
My name is J. Christoph Amberger. This might not be the first time you've heard of me. I've sent out predictive research reports just like this one for many years... to over 20 million readers. Maybe you remember some of them. Maybe you also remember some of my other work, as the Executive Publisher of the financial newsletter Taipan.
Our past predictions have proved uncannily accurate – and profitable! I'll share some of that evidence with you too, as you read on.
I'm also going to introduce you to my newest venture, the next step in providing cutting edge market analysis, with a totally new kind of service – called "Today's Financial News" or simply, "TFN."
Where our international research network in years past reached into markets all over the world, our brand-new TFN premium service Hot Stock Confidential takes it several steps further...
Not only with our in-depth research... But now with the ability to deliver up to the minute market news, recommendations, and urgent alerts as fully and frequently as you've come to expect from today's advanced technology.
But let me explain why the coming sell-off in commodities... including gold... is all but inevitable!
Make no mistake: It's already begun!
The SPDR Gold Trust (GLD) is the world's largest gold-backed exchange traded fund. This single ETF holds more physical gold than China, the Netherlands, and the European Central Bank combined. It owns more gold than Russia, the Bank of England, and Saudi Arabia.
In fact, the difference between the gold reserves of the Bank of Japan and GLD last December was a measly 130 tons.
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In September, it began selling gold. Tons of it.
Between July and late September, GLD liquidated 68.7 tons of gold. On one day alone, it sold off 10 tons of bullion. According to the Reserve Asset Statistics of the World Gold Council, that corresponds to the combined reserves of Canada, Mexico and Bahrain.
GLD had purchased 79 tons of gold between December 2007 and July 2008. That corresponds to the total gold reserves of Australia or Kuwait.
In the last two months, the fund has liquidated 74.7 tons of gold… the equivalent of Egypt's total reserves.
Of course, you'd expect a gold fund to engage in large-scale buying and selling of bullion. But you'd also expect trading volumes representing the total gold reserves of industrialized nations to have an effect on the gold price.
One way or another
But something curious happened in mid-October. You see, when global equity markets crashed the second week of October… with the Dow shedding an incredible 18% of its valuation in a single week… GLD reported adding another 30.69 tons of gold…
That's a new record of 770.64 tons of gold bars, held by a custodian in London for the trust.
Between September 16 and October 13, GLD added 156.29 tons of gold metal to its holdings. That's more than the total reserves of Sweden (146.6 tons), Saudi Arabia (143 tons) or the Bank for International Settlements (134.9 tons).
Yet despite of this soaking up of “tight supplies”… despite the U.S. Mint halting production of some American Eagle coins due to supply shortages… despite gold coins trading at the highest premium to spot prices on record…. GOLD PRICES FELL OVER 15% IN A SINGLE DAY!
But GLD is just one gold-backed ETF...
The introduction of exchange-traded funds linked to gold was a major new catalyst for gold demand. In fact, it was mainly demand from fund investors that was driving the gold price up. The fund first listed on the NYSE in 2004… at the very beginning of gold's most recent meteoric rise.
Are you seeing a pattern emerge?
Let's look at the inventory: Gold is now trading up to $50 below its early January price level of between $850-930 per ounce. Which means the year-to-date excess inventory is held at a loss…
When major gold purchasers turn into major sellers of physical gold – like GLD did in September – it causes a severe disturbance in the supply-demand ratio that supported the bull run of the past four years.
Why else do you think gold plummeted on Friday, October 10… to below $900… as markets crashed worldwide?
This is vital… There's no time to lose!
My team and I have compiled a Special Report, The Ultimate Gold Hedge Options Play. In it, we tell you exactly what you must do now to safeguard what you have… and insure against commodities volatility.
You'll be able to profit from gold's powerful forward momentum… AND from its even stronger eventual slide.
But let's back up for a second…
A history of timely advance warning
On July 15, I warned our readers that oil prices were headed for a severe correction. People laughed and shook their heads. And why not: After all, oil posted its all-time high of $147 that week.
We recommended our readers buy shares in select U.S. refinery stocks: These companies had been crushed as crude oil prices ate up their profit margins – and would certainly profit from a reversal of the trend.
Readers who took our advice saw shares in the refiners we recommended soar by up to 80% within just a few weeks… as oil prices began to plunge.
Our analysis now indicates a similar scenario for gold. That's why I asked my editors to develop a strategy to safely profit from this INEVITABLE catastrophe.
This strategy is beautiful in its simplicity… and is designed to lock in up to 200% to 300% gains as safe havens are hit by the perfect storm…
This is exactly why I'm writing to you today
If the hedge funds, pension funds, ETFs I mentioned above are forced to free up cash to pay out investors withdrawing capital… they'll start selling their holdings.
Over the past years, gold has been in a strong rising pattern. But there's an increasing chance that gold is heading toward a dramatic fall. Many gold experts agree a drop to $500 per ounce could be in the cards:
You see, gold and oil prices generally move together.
Historically, the price of oil has averaged about 15 barrels per ounce. But with recent soaring oil prices, the relationship strayed far from this average. Recently, the oil-to-gold ratio fell to an all-time low of 7.5:1.
Let's apply just the two ratios: At 15:1, a price of $70 per barrel of oil gives us a price of $1,050 per ounce. At 7.5:1, we'd have half of that... a mere $525 per ounce.
If recent trends hold up, gold may be in a hurry to lose another 25%... just to catch up with oil's current levels around $70!
But the outlook for oil is not at all bullish: Supply is expanding... Demand is stagnating: Worst of all, the speculative buying frenzy that exploded oil prices into the $140s has stopped... and is now turning into selling pressure!
Oil has lost over 50% – or $70 dollars per barrel – in just four months. Could it lose another $20? In my opinion, it could happen just as easily as Lehman Brothers going out of business.
What could that mean for gold?
Let's do the math: Oil at $50, applying the 7.5:1 ratio, leaves us with $375 per ounce of gold. A bit more than last half of Friday's post-plunge value...
Here's what this means to you...
Savvy options investors have been getting rich from fluctuations in the markets for years. They profit when prices go up and they really profit when prices sudden reverse and head south.
Opportunities to use options to profit in the gold industry are rare. But when one comes about, you had better take advantage of it.
This is the best profit opportunity I have ever seen in the gold market.
Buy-low, sell-high investors are going to get rich.
Gold will likely decline as fast or faster than it had been advancing earlier in the year. It'll create an incredible opportunity to options investors.
This rare investing phenomenon is why my team and I created the Ultimate Gold Hedge. By taking the simple, smart steps that I will outline in our latest, confidential Special Report, The Ultimate Gold Hedge Options Play, you'll be able to profit from gold's remaining, powerful forward momentum… AND from its even stronger, inevitable slide.
Here's the plan:
Experts agree that gold prices still have the potential to set new all-time highs in the next few months. Prices from $1,200 to $1,500, and even $2,000 an ounce, are being tossed around. (While I believe there's a good chance gold could reach $1,000 in the next few months, it would take a catastrophic economic failure to get it $2,000.)
According to the options market, gold's peak will be just over $1,000.
Our favorite measure of the gold market is the SPDR Gold Shares exchange-traded fund I told you about. It's the purest way of playing the gold market without actually hoarding huge piles of gold in your basement.
I've spent the last few days of this market meltdown studying, discounting, and valuing the fund's options. There's no doubt that they're HUGELY overvalued. The investing opportunities are endless, but two options in particular have me salivating.
Heads, we win… tails, we make a killing!
Right now, there's one option in particular for just $9.50. At this price, the market is anticipating gold will peak at less than $1,000 before spring 2009.
If gold trades for $1,200 between now and this option's expiration date, you could make more than 20% on these options.
Analysts are certain we could see $1,500 in the next few months. At that price, these options could nearly double in value.
And if gold reaches the ultimate peak of $2,000, you could be sitting on huge gains of at least 200%.
What about the downside?
Now remember, I said our trading experts had created the Ultimate Gold Hedge. That means you'll be protected if gold suddenly slips in value. As it did on Friday, Oct. 10 when gold fell almost $100 as markets crashed! Or last Friday, when it dropped down to $780!
To protect from a backwards slide, we have to look at put options. And since experts agree that a dramatic slide in gold could take place over several months, I looked for options with a long-term expiration date.
This other set of options is a steal at their current price of $11.90. If gold prices drop to our target of $500 per ounce by 2010, these options should be worth at least 210% more than they're selling for today. Even if gold does not drop so drastically – say it hits $650 – you could still pull in profits of 100% or more.
No matter what, you have a fantastic opportunity to profit from gold's potential fall. By taking a few simple, smart steps we outline in our latest confidential Special Report, The Ultimate Gold Hedge Options Play, you may be able to profit from gold's residual forward momentum… AND from its even stronger eventual slide.
At TFN, our approach is straightforward: Provide our readers with profitable investment and trading recommendations… no matter what the overall markets are doing…
While markets crashed in early October, our stock experts generated fast, safe, reliable gains of both on the U.S. and overseas markets. Just take a look…
- 33.9% on VimpelCom (VIP) in a day…
- 71.9% on Under Armour Jan 30 Puts (UAMF) in 5 trading days…
- 79.6% on Boeing Feb 55 puts ( BANK)…
- 87.1% on National City Jan 2.5 Calls (NCCAZ)…
- and 30.6% on McDonalds Dec 62.5 puts (MCDXZ).
Making money as markets go MAD
Right now, there are literally dozens of companies we're keeping our eyes on. These are stocks we'd buy ourselves… and have no problem recommending to our relatives. Companies whose insiders are buying… that have easy-to-understand business concepts, established markets, growing revenues and unique products.
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In many instances the daily trading volume of these companies is so light, a single story in the mainstream media… an Internet rumor… a line dropped on a bulletin board… could double or triple their average daily trading activity and push stock prices out of our advisable buying range.
How our service works
The instant an opportunity arises, we notify you by special dedicated newsfeed or email. This is the only way we issue our alerts.
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We supplement our alerts with regular updates and strategic adjustments, as well as exclusive special video reports and podcasts that enable you to keep up on your Hot Stock Confidential picks via your email – to your cellphone, Blackberry, or any other digital information medium.
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Become a Member of Hot Stock Confidential today for only $299 a year and you'll receive immediate access to a wealth of investment advice… including our latest Special Report, The Ultimate Gold Hedge Options Play.
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Now you know how much a research service like this would typically set you back – $799, $999… or even $1,899 a year. And frequently they provide just one or two recommendations a month.
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As a Member of Hot Stock Confidential, you'll get all of our Reports, Alerts and valuable research for just $299 a year – if you accept this offer today!
Still not convinced? Then try us out for 90 trading days for just $79. You can't beat that offer!
Of course, it would be unfair to ask you to become a Member sight unseen
But while I have a vested interest in making your Membership in Hot Stock Confidential as enticing as possible, it's you who will determine if we provide value.
That's why I'm prepared to give you 45 days to put us to the test. That's right... A full 45-day trial period.
That translates into an absolute minimum of 6 trading recommendations… on top of those we make available to you in our confidential Special Research Reports.
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So if you think you're ready to become a Member of the TFN Profit Network, get started by selecting the button below. Or if you'd prefer, call us directly at 1-877-465-1416.
Best regards,
J. Christoph Amberger
Executive Publisher, Hot Stock Confidential
October 2008
P.S. Order today and you'll also receive access to the Special Reports 3 Recession-Busting Stocks You Need to Buy Now and Profit From the Aging of America – not to mention the details on our past Hot Stock Picks of the Week. And you'll get it all for the Hot Stock Confidential introductory rate of $299 for a full year – or just $79 for 90 days!
P.P.S. I frequently get asked if the Membership fee for Hot Stock Confidential is tax deductible. There's indeed a very good chance that this is the case, but every situation is different. Check with your accountant before you take advantage of this special “bonus loophole!”