Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Home About Us Resources Archive Free Reports Market Window

This Gold Strategy Makes 50% a Year in Buy Mode

By Dr. Steve Sjuggerud
Thursday, July 7, 2011

In my new trading service, called True Wealth Systems, we have two simple strategies we use for buying gold...
 
Both systems make intuitive sense. And both are saying "buy" right now. (To be completely accurate, True Wealth Systems issues monthly signals. So as of the end of June, both were saying "buy.")
 
Historically speaking, when both strategies say buy, your wealth compounds at an annualized rate of over 50% a year, going back 40 years, if you invest in a double-long gold fund.
 
 
Annualized Gain
Time In Buy Mode
Trend system
31.6%
56.2%
Currencies system
41.5%
32.4%
Both systems
50.4%
25.6%
 
The trend system is simple: You own gold when its long-term trend is up. There are plenty of different ways to define the long-term trend in gold. But it's currently still "up." So our first simple system says "buy."
 
Our Gold Trend System Says Buy
 
Our second system is based on a simple idea about currencies. The idea is, it's a REAL bull market in gold if the price of gold is up in terms of all four major currencies – the dollar, the euro, the Japanese yen, and the British pound. So if gold is up from the previous month in all four currencies, you buy gold for the next month.
 
This currencies system – where gold has to go up versus all four currencies – is a tough standard for gold to beat every month. So you're only "in the system" about one-third of the time. But it beats our simple trend system.
 
(If you're interested in the specifics: To smooth out the monthly fluctuations, we use the average gold price in each currency each month for our signal... But because you can't invest in average monthly prices, we have to use the closing prices of our double-long gold index to calculate our returns.)
 
By itself, each system is good... But you really want to be invested when both systems are firing.
 
Both systems are in "buy" mode only one-quarter of the time... and that's when you make the biggest gains. As of the end of June, BOTH SYSTEMS are firing right now... Both systems are in buy mode... So you want to own gold!
 
In True Wealth Systems, we buy gold with leverage...
 
We buy shares of the PowerShares DB Gold Double Long fund (NYSE: DGP).
 
Again, our double-long gold index has increased in value at a compound rate of over 50% a year when both of our gold indicators are in buy mode. Both indicators are in buy mode only about a quarter of the time... but they're both in buy mode now.
 
Own gold for the month of July... and based on the success of the True Wealth Systems indicators, consider owning it with leverage through DGP.
 
Good investing,
 
Steve




Further Reading:

Find more ideas from True Wealth Systems here:
 
"Our strategy for trading oil booms and busts compounds wealth at a 19% annualized rate when in 'boom' mode."
 
"Right now could be the start of this decade's triple-digit gain" in this country.
 
This sector's "stocks have had four massive, triple-digit bull markets since the 1980s."

Market Notes


A HUGE "PICKS AND SHOVELS" WINNER

Kudos to our colleague Matt Badiali: His top "picks and shovels" way to invest in the massive U.S. shale gas boom is one of the stock market's biggest winners right now.
 
Regular readers know we're always interested in a good "picks and shovels" way to invest in a big idea. When looking to invest in a trend, the safest, steadiest horse to bet on is often a company that supplies a vital product or service to trailblazing explorers. For example, we recently highlighted how Joy Global, a provider of mining equipment, has massively outperformed mining stocks.
 
One of the biggest trends going today, and one that will last for decades, is the boom in finding large "unconventional" natural gas fields. It's given the U.S. a huge boost in energy independence... one re-emerging powers like India and China would love to have as well.
 
Matt's top play on this boom is Carbo Ceramics, the big maker of the "shale ammo" needed to access unconventional gas. Since Matt's recommendation in early 2010, the stock is up 178%... and sports one of the "smoothest" uptrends you'll find anywhere. It pays to own the picks and shovels!

Carbo Ceramics: A huge beneficiary of the unconventional gas boom

In The Daily Crux



Recent Articles
Legal Notices: Stansberry Research LLC (Stansberry Research) is a publishing company and the indicators, strategies, reports, articles and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

Readers should be aware that trading stocks and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.

 

Our testimonials are the words of real subscribers received in real letters, emails, and other feedback who have not been paid for their testimonials. Testimonials are printed under aliases to protect privacy, and edited for length. Their claims have not been independently verified or audited for accuracy. We do not know how much money was risked, what portion of their total portfolio was allocated, or how long they owned the security. We do not claim that the results experienced by such subscribers are typical and you will likely have different results.

 

Any performance results of our recommendations prepared by Stansberry Research are not based on actual trading of securities but are instead based on a hypothetical trading account. Hypothetical performance results have many inherent limitations. Your actual results may vary.

 

Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

 

© 2024 Stansberry Research, LLC. | Privacy Policy| Customer Service
Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry Research, LLC. 1125 N Charles St. Suite 500, Baltimore MD 21202.