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Gold Stock Investments

Written By Brian Hicks

Posted July 18, 2009

There’s always a bull market somewhere. . .

Right now could be the most profitable time to be a gold investor, according to Brian Hicks, publisher of Wealth Daily.

Sure, in recent months, gold was back around $1,000 an ounce and got shot down.

But we think we’ll see $1,000 again. Heck, we could even see $1,500 to $1,600 on consideration of a second stimulus and growing, unsustainable debt, to which dollar flooding has become the only solution.

Mark these words: now is the opportune time to buy gold.

It’s virtually begging to be bought, as we enter the third and final stage of the correction in gold stocks. We’re talking about the potential to see a 1970s-style final stage 750% run in gold.

Gold Prices Are Due for a Prolonged Rally as the Recession Deepens

So says Peter Schiff, the financial guru who (along with us) predicted the subprime meltdown and ensuing recession. “If you really want to grow your wealth, you should own gold in the mining sector. With gold stocks, there’s obviously a lot of leverage to higher gold prices,” he says.

“With gold stocks, there’s obviously a lot of leverage to higher gold prices. As millions or billions of people discover gold as a store of value and as a way to escape inflation, there’s going to be tremendous demand and somebody’s going to have to supply that demand. It’s obviously going to have to be mined,” he says. “So the companies that have gold and mine it are going to see profit margins explode.”

And the scenario will likely be strengthened, as strong demand outweighs global output. In fact, world gold production has declined since peaking in 2001, despite gold’s $600 rise.

“Mines are not as productive as they used to be. Supply is very constrained. So if we get a big increase in demand, there are really no significant new gold deposits that are going to come on-stream any time soon. So the companies that are already producing are simply going to be able to get a lot more money for the ounces that they pull out of the ground,” Schiff added.

Even David Einhorn’s Greenlight Captial is bullish, telling investors it’s shifting all of its holdings in a gold ETF into bullion in Q2 2009, and alerting clients that he was “buying gold for the first time amid the threat of inflation from higher government spending.”

Even COMEX traders are predicting higher gold. . . possibly $1,600 by December 2009, which would firmly put 100,000 call option contracts in the money.

Gold’s going much higher, folks. Now is the time you want to be buying gold.

Good Investing,

Ian L. Cooper


P.S. In case you missed any of our top stories from Wealth Daily and our sister publications, we’ve included them here:

The Goldman Sachs Oligarchy: The Nexus Between Power and Money
It’s a great follow on the Matt Taibbi story in Rolling Stone that labeled Goldman as
a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Blinking Sell Indicator for Commodities?: Warning Signs Are Beginning to Appear
The Baltic Dry Index — a gauge of shipping activity — has begun to turn down. And, according to the BDI (well off June highs), there are anecdotal reports of coming gloom and doom.

Sahara Gas Pipeline: Europe Gets Another Gas Option
The threat of guerrilla attacks and al-Qaeda sabotage isn’t keeping Europe from pushing for a new pipeline. . .

Commercial Real Estate Fears of Fallouts and Failures Are Overblown?
Reis Inc. — an impartial provider of commercial real estate performance data — says vacancy rates at strip malls, neighborhood centers, and regional malls are increasing at rates not seen in 30 years. “We’ve never really seen deterioration of this order in occupied space since 1980. We don’t see much in expectations for improvement throughout the rest of this year and next year.”

Why Hasn’t This Market Already Exploded: Government’s Last-Ditch Efforts to Prop up This Domino Are All Doomed to Fail
First it was housing. . . then the banks. And after that, the automakers came crashing down. Next up is a commercial real estate crash.

The Wind Energy Industry: Of Pickens, Babies & Bathwater
There have been all kinds of remarks since T. Boone put the brakes on one of the world’s largest planned wind farms last week. Hardly any of them have been good, most of them are even using this to signal the death of renewables. The death of renewables? Phooey.

Option ARM Resets: Presenting the Most Profitable Event of the Next 2 Years
Investors are getting it. . . In fact, they’re figuring out what the bullish talking heads of CNBC can’t — or won’t.

Who Owns the Most Gold in the World?: 4% of the World Controls 12.6% of the Gold
According to the experts, the final stage of the gold bull market is right on the horizon. This will be the most exciting and profitable time to be a gold investor.


Ian Cooper’s Market Insider

A crisis in the $3 trillion commercial real estate market looks like the next obstacle for the recession-weary. . . just as Steve Christ and I have been saying about the $400 billion in commercial real estate loans that will mature this year and the billions more following. On top of that, banks could lose as much as $140 billion from construction loans that involve commercial real estate.

And it’s not likely to get any better any time soon.

In fact, real estate experts and regulators just finished warning a U.S. Congressional committee that commercial real estate is headed for a crash that “could eclipse the devastating slump of the early 1990s.”

So, how do you play the coming fallout? Steve Christ has four ways.