Gold drops… let’s do it again!
Today's Financial News - Posted June 5, 2009
Gold investors are taking it on the chin today. But that’s okay. It is giving us an opportunity to rack up even more profits. We took gains of 20% earlier in the week and now the market is setting us up for another round of profits.
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): The gold markets are getting volatile. A few weeks ago, I made a recommendation to Hot Stock Confidential readers to buy shares of one of the world’s most prominent gold mines. It did not take long for our position to surge by over 20%.
Thanks to increased fears of a weak dollar and crippling budget deficits, the gold markets have been filled with speculators that want in on something with some tangible value.
But with many analysts touting the $1,000 mark for an ounce of gold, I told our subscribers to sell and lock in the gains. The risk outweighs the reward.
It was a bold call in the face of strong bullish sentiment, but it has paid off. Gold is taking a strong hit today as Wall Street digests a healthy jobs report. As I write, the precious metal is trading for $957 per ounce, down $25 from yesterday’s settlement price.
Does this week’s action mean the bulls have left the building? Will gold prices drop back to the low $800 range?
Absolutely not.
Gold is still a strong asset, but the short-term volatility is on the rise. At Hot Stock Confidential, we are traders. It was best to take our profits and run to the next big trade.
But we will do it again!
If you are looking to get into the gold trade, but missed the latest run, take this week’s action as your second chance. Wait for prices to drop back towards the $900 level by the middle of next week and make your move.
But do not go with a plain vanilla trade like the SPDR Gold Shares ETF (NYSE:GLD). Take advantage of the leverage provided by gold miners.
A lot of investors are chatting about junior miners, the small, more speculative companies working on the margins of the industry. Sure, if you pick the right company you could make out like a bandit. But pick the wrong one in this credit-tight market and you could be losing money while everybody else is raking it in.
My recent recommendation (Hot Stock Confidential subscribers know all about it), is down 7% today, well below our sell price and quickly approaching the original buy price. After another day or two of bearish action, we will be able to get in on the action once again.
Do your research now, or save the time and join us, and be prepared the next time the bulls decide to charge. It won’t take long.
Next Article: Texas oiler moves to — France (of all places)! Stock soars!
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