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Investing in gold: An easy call

Today's Financial News - Posted April 3, 2009

Timing the market is easier than ever. It has been surging and plummeting like clockwork. Take advantage of the opportunity and buy some gold before the herd wants it once again.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): If you believe in buying low and selling high, the gold markets have got to be getting your attention. With the markets finding reasons to surge this week and last, the price of an ounce of gold has once again dropped below the critical $900 level.

So far this year, any time investors bought at today’s levels or below, they had the chance to turn around and sell for a quick gain. The latest dip will be no different.

As the G20 meets in London and Obama spreads a diplomatic olive branch all across Europe this week, investors believe more and more that the worst of the economic downturn is over. But take an in-depth look at the numbers and you may get a different opinion.

For proof, just look at today’s unemployment figures. As we go into the weekend, some 13.2 million Americans are out of work and looking for a job. Unemployment has not been as high as the current 8.5% level in over 25 years.

Can’t climb without money

With all of those folks cutting back their spending and without their corporate-matched 401(k) contributions, a quick snap-back or “V-shaped” recovery is highly unlikely. We are going to be mired in the mess for quite some time.

That means today’s prices, while certainly not overpriced, will not look like the start of a great wealth-generating equities-market surge. Instead, in just a few weeks we will be looking at it as the top of a long-standing range. And today’s gold prices will look like a good day to buy.

It was because of that sentiment I told Hot Stock Confidential  subscribers to lock into an international gold miner yesterday. Its shares were slammed as gold prices dropped over the past several days. The buying opportunity continues today.

All it will take is on worse-than-expected headline or news of international struggle (think N. Korea fueling up one heck of a rocket) and investors will be lining up to cash in their gains and get back into a gold position. When they do, you will be glad you bought at the low end of the range.

This market has been fairly simple to time over the last few weeks. Up and down like clockwork. Take advantage of the latest swing and prepare for a downward turn over the next two weeks.


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Posted by Andrew Snyder · Filed Under Gold and Resources 

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