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What Our 47%-a-Year Gold System Says Now

By Dr. Steve Sjuggerud
Thursday, February 21, 2013

You could have turned $10,000 into over $3 million trading gold... if you'd invested following the principles of our True Wealth Systems gold strategy.
The system is incredibly simple, actually... But it has delivered 47% compound annual gains when "in the trade." 
Today, I will share with you the basics of how our incredible gold system works... and what it is saying about gold today.
Our True Wealth Systems gold system simply attempts to identify bull markets in gold.
So let me ask you... How do you know when it's a bull market in gold? In True Wealth Systems, we have two ideas for this... two criteria...
The first idea is this: It's a bull market in gold when the gold price is going up against the world's most important currencies.
We took a look at the four most widely traded currencies... the U.S. dollar, the euro, the British pound, and the Japanese yen. And we tested various systems based around a simple concept... 
If gold is up versus all four currencies over the previous month... buy gold. Repeat the next month. (To smooth out the daily fluctuations in gold, for our signal, we use the average gold price in each currency each month.) Historically, when gold is up versus the major currencies in the previous month, a double-long gold index rises at a compound annual rate of 39%.
The results of this one particular strategy over the last 40-plus years have been incredible...
If you simply bought a double-long gold fund when you got a signal and then switched to Treasury bills when the signal was off, you'd have turned a $10,000 investment in 1971 into over $3 million today.
Since 1971, the price of gold has risen at a compound annual rate of 9.5% a year. By using this much-less-volatile system, your wealth would have compounded at 15.1% a year.
This system is simple, but it's sound. History shows that a great predictor of when gold will go up is... well... when it's already going up versus the major currencies.
Going 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.  
Our second system is "in the trade" much more frequently than our first... It is our "trend" system.
The trend system is simple: You own gold when its long-term trend is up. Going back 40 years, when gold is in an uptrend, a double-long gold index rises at a compound annual rate of 29.5%.
By itself, each system is good... But you really want to be invested when both systems are firing. That's when you make the biggest gains.  
A double-long gold index has increased in value at a compound rate of 47% a year when BOTH of our gold systems are in buy mode. Both indicators are in buy mode only about a quarter of the time...  
And right now, neither system is in buy mode.  
Both systems haven't been in buy mode since October... and that has been the right call in gold. The precious metal has fallen about 10% since then.
Our True Wealth Systems gold strategy REALLY delivers. It's simple and intuitive, and it can make you a lot of money. In short, you want to be in gold when it says buy. And it's not saying buy yet...
Based on our powerful True Wealth Systems gold strategy, there's no hurry to pile into gold.
Good investing, 

Further Reading:

See what other trades the True Wealth Systems computers are spotting here...
"The investing public is completely ignoring the opportunity in biotech." 
"This cheap-, hated-, and in-an-uptrend opportunity is likely just getting started..."
"We have all three things we look for in an investment," Steve writes. "This is the real thing, my friends... It is a huge opportunity."

Market Notes


Evidence of the bull market's strength: Even airline stocks are soaring to amazing new highs...
Back in September 2011, we noted the trouble with airline stocks. Airlines sport razor-thin profit margins, they're subjected to wild swings in fuel costs, and they require lots of capital expenditures to keep the businesses running. This makes them horrible long-term investments. But from a trading viewpoint, it's worth noting that airlines go through big "boom and bust" cycles. These cycles can be traded for big profits.
In our write-up, we noted how airlines had just experienced a big bust. Many airline names, like Southwest Airlines, had lost 30%-40% of their value in just a few months. Sentiment toward the sector was awful. This, we speculated, offered a tradable bottom for contrarians.
Since our write-up, the broad market has rallied. The economy has strengthened. Things are looking up so much that the airline investment fund (NYSE: FAA) has gone "parabolic." Shares of FAA have jumped 28% in the last four months... and sit near a 52-week high. It's a big bull market in stocks... one that can even boost the airlines.
– Brian Hunt
Airline Stocks (FAA) Surge to a New 52-Week High

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