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And you need a tool to help you get those assets where they need to be. Gretzky’s secret? “I skate to where the puck is going to be. For that you’ll need two things: • An understanding of how to invest in volatile financial markets • A single. and make you wealthier in the process. . growth-oriented investment • A dependable. How you can position your assets to ensure that you’re ahead of the puck when the financial game gets tricky. Only instead of using skates. a simple stock investment strategy that is so easy. Why not think about the future of your assets? After all. there’s a way to look into the future and protect the wealth you’ve worked all your life to obtain and keep it away from financial predators who stand between you and your family’s future.What Wayne Gretzky Has In Common With A Bull Market For Gold In 2013 Experts say he was the greatest hockey player ever. steady source of income • Protection against economic volatility • A relatively low tax rate investment • Leverage in gaining quick cash liquidity In other words. so powerful.” Imagine that. a solid. A magician on the ice. Back to the Great One We know Gretzky’s secret weapon was his ability to visualize where the puck was going to be before it got there. you’ll be using the aforementioned commodity strategy to protect and build upon your wealth . Wayne Gretzky’s strategy was simple. the “Great Gretzky” had a knack at being at the right place at the right time. . Not the fastest skater. . dependable. and so effective that. considering your financial future isn’t a luxury – it’s a necessity. Fortunately.overlooked commodity investment that can protect your accumulated wealth from financial & economic disasters . the kind where you have . once you have secured it. 2 . direct and effective. It’s the same idea in the asset investment game. • Exposure to a high-quality. often. there is nobody who can ever take away the wealth you’ve earned and want to save and pass along to your family. and not where it is now. not where it has been. You need a vision of where your assets need to be positioned in order to solidify and ensure your financial future. . . Heading to where you need to be so you’re in prime position to leverage opportunity. nor the most athletic player on the ice. And the tools in his arsenal that allowed him to out-maneuver other players were his skates and his smarts that he utilized to get where he was going. . perfectly adaptable strategy that provides true financial security.
Morgan Stanley and Thomson Reuters both say. it’s not too late to get into gold -.730 per ounce. Gold Price Estimates: Morgan Stanley. a hedge against inflation. Gold is flying off the shelves these days. A low interest rate environment. Thomson Reuters GFMS says that gold prices could rise above $2. It also has five qualities that make it the best investment in the world: • It’s rare . • It’s limited in quantity . 2012 to 2013 Gold Price Estimates: Morgan Stanley. • It’s virtually indestructible .00 / ounce From Morgan Stanley research report on gold prices going forward: Investor demand for gold as a safe haven is likely to keep gold prices elevated. a diversification play. gold is both difficult and expensive to dig out of the ground.800 per ounce. with an average price point for the year above $1. and the Wall Street investment firm Goldman Sachs has said gold should rise to $1.000 by 2013. And that’s where gold can help.825.The Most Effective Asset Protection Device Ever Designed In short.S. and political tensions in the Middle East will also boost prices. Then there’s the investment bank Morgan Stanley. there’s plenty of upside for gold going into 2013.Gold can easily be shaped in various shapes and sizes. Goldman is hardly alone.Gold won’t ever diminish in quality or decay structurally. Gold has skirted toward $1. gold can be a “safe haven” investment.175 an ounce in 2013. Despite what some Wall Street prognosticators say. At any given time. Consequently.600 in mid-2012. 2012 to 2013 2012 average year price: $1.All the gold in the world could fit in the confines of a football field.860 before the year is out. unconventional monetary policies in the U. and would only rise five feet off the ground.Gold represents roughly five parts per billion of the earth’s crust. gold is a relatively safe and growth-oriented investment.Gold is mined incrementally – its output rarely exceeds 2% annually. if you have more money now than you’re willing to lose-or enough to make it worth someone’s effort to take-you need to consider getting yourself some serious asset protection. • It’s hard to find . and Europe. and a hedge against a collapse of a country – or even a global – economy. Source: Morgan Stanley 3 .as Goldman Sachs. thus increasing its value in the consumer marketplace. trading at $1. which says gold could crest $2. But no matter what the economy is doing.175. • It’s malleable .00 / ounce 2013 average year price: $2.
and it measures the implied volatility of S&P 500 index options.S. gold prices over the past six months actually only have a standard deviation of 0. “gold-diggers” are increasingly turning to gold as a hedge – and a profitable one. Gold Covers a Whole Lot of Ground Gold investors know something that non-gold investors don’t now – gold is one of the most versatile investments in history. timing is everything. and we have no problem sharing five of our favorite “gold bull indicators” for 2013: Bullish Indicator #1: In Volatile Markets. especially in volatile economies like the one we’re experiencing right now. so too will gold prices. That’s more than double the price of $670 an ounce the commodities market saw just five years ago (in May 2006).500-an-ounce. mainly on the continued slide of the U. the Word Gold Council expects that number to rise significantly by 2020. 2011. at that. One way to do that is to measure the “VIX” Index. more and more investors are starting to view gold as a fairly reliable investment. when the VIX is climbing upward.3 standard deviation the gold market saw in 1979. There’s even a specific gold volatility index (the “GVZ”) and it’s also trending upwards significantly in 2012. at least historically speaking.Heavy Metal: Gold Investment Tips A good rule of thumb for investing in gold is to gauge economic volatility. dollar and from a run-up in inflation. But gold prices aren’t really all that volatile. the spot price of gold reached $1. VIX is shorthand for the Chicago Board Options Exchange Market Volatility Index. and as a strong currency play against a struggling dollar. as it represents a key stock market the market estimate of stock market volatility over the next 30-day period.00 an ounce. By and large. have risen 25% in the past 10 years. 4 . Consequently. as exemplified by the myriad bullish investment outlooks from the Goldman Sachs and the Morgan Stanley’s of the world. but the outlook for 2013. On August 23. when gold prices rose 180%. With inflation rising and the dollar falling. Why Gold Will Rise in 2013 Gold has had a bumpy ride so far in 2012. for example. like in most speculative venues. That’s significantly more stable than the 10. Investors historically view gold as an excellent hedge against inflation.910. is highly favorable. On Wall Street. Traders have long nicknamed the VIX as the fear index.7. In the run-up to $1. But there’s much more to the bull market in gold coming down the pike. With demand still high (gold purchases in India. and China’s gold market is showing similar growth).
inflation peaked were 1946.33%. the average return from stocks. Since 1945 – the culmination of World War II – the five years in which U. based on gold’s supply and demand fundamentals. • As a store of value.S. Bullish Indicator #3: Gold Protects Against a Falling Dollar As noted above. where Europe is teetering on the brink of recession.S dollars.4%. and India have all seen significant slowdowns in key sectors like manufacturing and housing. and once-stable economies like the U. and in the volatile markets that accompany such economies? That’s what gold can do for you in 2013. the yield for U. In that timespan.. History tells us that gold rises as inflation rises. dollar is the world’s reserve currency.S. after nine months of plus3% activity in 2011. How does that impact gold prices? Quite significantly. But myriad factors that contribute to higher inflation are now in play. Now think about the chaotic global economy. And inflation is exactly what’s beginning to churn in global economies. and that’s good news for gold investors in 2013. negative real interest rates (i.S. Wouldn’t you want an investment that protects you in volatile economies. and ultimately. to higher gold prices. Few investors want to earn negative interest.S. public debt problem Another point on gold and its relationship with inflation. 5 . including: • Robust stimulative monetary policy • Trillion-dollar bailouts for banks and corporations • A weakening dollar • A huge U. Treasuries earning under 2% in mid-2012. China. investment returns after inflation) are pushing investors toward assets with real value – namely gold. • As a portfolio diversifier. and 1980. against both the Euro and the Japanese yen. 1974. as measured by the Dow Jones Industrial Index. dollar is in decline in 2012. Since the U. its trajectory (or decline) also impacts the direction of gold prices. Bullish Indicator #2: As Inflation Rises. was -12.Think of the various reasons that regular consumers and Wall Street fat cats invest in gold: • As a hedge against inflation. 1975. and bank savings rates earning far less than that. any fall in the U. and as a result. the U. • As a safe haven in times of geopolitical and financial market instability. • As a hedge against a declining dollar.S. actually. currency triggers a rise in the price of gold. With inflation hovering at 2%. Inflation has nominally remained below 3% for 2012. Gold is traded against U. trade deficit • A huge U. So Too Will Gold Gold is renowned as a hedge against inflation.S.S.as opposed to earning interest – investing in gold is significantly more appealing. The school of thought that global economies are heading in that same direction is widening. All of the above contribute to higher inflation.e.S. the average real return on gold was 130. If you pay an entity to hold your money -. 1979. • As a commodity.
the same issues that negatively impact other investments traditionally trigger higher gold prices. Bullish Indicator #4: If Europe Falls. central banks had bought more gold this year than in all of last year.S. Bullish Indicator #5: Demand For Gold Will Be Higher In 2013 Demand for gold is outpacing supply and that trend should accelerate in 2013. and that’s a trend that should continue. central banks last year added the most gold to their reserves since 1964. especially in South Korea. and investors will increasingly turn to gold to protect their financial portfolios. and are trying to deleverage debt by adding more of it. Make no mistake. global currencies weaken. in hopes of stimulating various regional economies (especially those of Greece.a scenario more and more economists view as realistic in 2013. Spain. For the first time since the 1980s. Gold is the Place To Be Issue #4 is the massive amount of debt accumulated by Eurozone countries. Both China and India have been purchasing unprecedented quantities of gold. Europe is also legitimately in crisis. By the middle of July. That’s what is happening right now.In 2012. Portugal and Italy). global central banks. Thailand. Over the long haul currencies will be squaring off against each other for devaluation. Unfortunately for consumers in those markets. In addition. In fact. debt and economic problems. Euro countries have taken a page out of the Keynesian economic book. dollar reserves. 6 . especially as gold production weakens. In fact. which have become net buyers since 2009 after several years of selling an average 400 tons per year. Economists say that Central bank demand could grow even more if China decides to replace dollar-denominated debt with gold as a hedge against a dollar that gets torpedoed by U. demand for gold also is surging from central banks. That’s why gold has a great reputation as a solid portfolio option. according to the World Gold Council.S. As noted above.” That limited supply has increased global demand. Ultimately. global gold production has not surpassed its record output in 2000. That scenario would push gold prices even higher . Russia and Mexico are buying gold again. Sooner or later. not only at the central-bank level but also by encouraging their increasingly well-off citizens to accumulate bullion. that deleveraging is already beginning to spur inflationary conditions across the continent. and that inflation should really gain momentum in 2013. The official sector looks to be net buyer of gold for years to come. especially in two major global markets. the steep decline of the dollar has elevated the price in the gold price. leading some experts in the mining industry to wonder whether the world has hit “peak gold. central banks have been net buyers of gold for three years in a row. and gold has a well-earned reputation as the “crisis commodity” as it has historically bested other investment vehicles during periods of political or economic tension. adding to demand. and the concurrent effort by Euro leaders to deleverage and reduce that debt burden. China will only be buying more gold in the future as it attempts to divest itself of some of its estimated $2 trillion in U.
leaving limited quantity for ever competing and ever larger demand. a trend that is expected to continue as government buyers load up on gold for investments. 7 . and as consumers buy more jewelry. China is encouraging its citizens to buy gold – with the world’s largest population. and one of the fastest growing economies China has made it legal for their citizens to buy gold and silver. Building Your Gold Pyramid Think of investing in gold as a four-tiered pyramid.In addition. befitting their emerging middle class status. with the safest tier as your foundation (on the bottom) and then the risk (and the reward potential) rises as you climb upward on the pyramid (see chart below). which has been the largest buyer of gold in the past few years. India already consumes most of the global gold annual mine output. and are actively encouraging them to invest in these precious metals. Then there’s India.
and no quick end in sight to the toxic issues weakening global economic strength. These days. but one of the most popular ways is to buy gold in small amounts – even as low as half a gram. including New York. You won’t earn any interest from owning physical gold. With the world economy in turmoil. Owning gold directly brings with it some serious responsibilities that go with commodity ownership. According to regulatory statutes. • Smaller purchase amounts – Gold investors can leverage ETFs in myriad ways. sellers (like banks and jewelry store owners) often add a premium of up to 15% on gold sales. Besides being publicly traded every day. That guarantees investors will own a reliable source of gold. • No storage – You don’t have to worry about storing gold with an ETF. 8 . gold ETFs are traded on the world’s major exchanges. and that’s exactly where the financial markets are moving right now. Besides the simplicity factor. are regulated by the U. Plus.S. there’s no guarantee of its purity on the open market. For example. The gold is physically held by the fund provider. safely and securely. Conclusion: A World In Turmoil Sets the Stage For Gold It’s no secret that moving to where the profits are is a page right out of the Wayne Gretzky handbook. like a bank vault. like common stocks and mutual funds. the stage is set for a bull run in gold for 2013. unless you buy gold directly from a bank. • Gold pricing is more transparent with ETFs – Gold ETFs are sold on the open financial markets. and you’ll have to pay for a secure storage facility. to hold your gold. Sydney and Tokyo. Securities and Exchange Commission. it could be a necessity.5% fineness and above. thus ensuring that the price of ETFs are always quoted on the stock exchange and that there is always a bid/ask price available during market hours enabling investors to buy/sell at market prices. • The “purity” issue: Exchange traded funds.Bonus Section: Consider Gold ETFs The primary benefit of buying gold ETFs over direct purchases of gold is simplicity. Consequently. depending on the particular ETF. investors may want to stop looking at adding gold to their portfolio as a luxury. playing gold via an ETF offers benefits: • Increased liquidity: Gold ETF’s offer some of best liquidity on Wall Street. ETFs must include assets with a purity factor of 99. with physical gold.
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