- Most of you believe that a time machine is a theoretical device.
You might like to be able to buy gold at $250 an ounce today, but without
a time machine your dream cannot come true.
- I’ve created a
real time machine. It really works, and you can use it to buy gold at
$250 an ounce today. To use my time
machine, please click here now.
- You can’t go
back in time and buy gold at its point of maximum price sale, but you
can look at other major markets and understand the emotional strength
required to buy them during similar price sales.
- Oil bottomed at $10,
while the major news media told you that the oil supply glut was
“here to stay”. Now they are telling you the same thing
about natural gas.
- When gold bottomed
at $250, it didn’t feel like a bottom, to put it mildly. It felt
like gold was going straight to $100-$150. Drawing arrows to infinity on
the gold price charts after a $200 rally isn’t how you build real
wealth. You must buy markets that are dominated by supply gluts,
extremely low prices, and investors in capitulation mode.
- In the natural gas
market, I’d like you to look carefully at the current change in
relative strength (RSI), the change in MACD, and most of all, the change
- From current prices
near $1740, gold needs to skyrocket to about $3100 to make you an 80%
profit. Natural gas needs only to rise to $4.50 to do the same thing.
- The last time gold
showed any kind of serious price sale was in the $1500-$1600 price zone,
and the sad truth is that most investors sold out or became terribly
demoralized as those prices happened. Sadly, the great gold sale had
almost no buyers amongst gold’s biggest fans.
- More gold sales will
occur. Have the patience to wait for them, rather than drawing arrows to
zero on the Dow chart and arrows to infinity on the gold chart. Those arrows won’t build you any wealth.
- You can’t know
if $2.45 is the bottom for natural gas. The changes in RSI, MACD, and
volume could not have been predicted to occur when they did. Carry some
short positions while building a net long position in this mighty asset,
so you don’t lose your sanity if a new round of lower prices is
yet to come.
- Wealth is built by
buying assets in what I refer to as the “surprise zone”, or
the “discomfort zone”. The surprise zone is the lower price area
on the price grid that you “know” your asset can never
touch. In contrast, most investors use prediction to buy assets. Use
your own failure to predict an asset higher, to buy it lower. My largest
buys of a major asset are always triggered inside of my
personal surprise zone. I buy my own stupidity.
Should you buy yours?
- Remember when I came
on the gold community scene during the October, 2008 carnage? While most
investors were selling out of the stock market and shorting it, I bought
Dow stocks into the tick lows, while literally holding my stomach. At
the same time, I was maniacally withdrawing money from banks on a weekly
- It was clear that
either the Dow and gold stocks were at a major bottom, or the markets
were going to close down and the financial system would collapse. I had
no clue which outcome would prevail. I bet on both outcomes by removing
cash from the system, storing gold, and buying the Dow and gold stocks
with my pyramid generator.
- I was absolutely
sure that General Electric was going bankrupt, yet I bought it anyways.
The market turned at my point of maximum pain, not my turn call, and the
same thing is likely happening now in natural gas. I have no idea
whether $2.45 turns out to be the final bottom, but it is certainly a
price where risk capital needs to be placed into this superb asset.
- Ultimately, I expect
natural gas prices to rise to $20 and higher, which is an eight-fold
increase from current levels. Gold would have to rise to about $14,000
to produce a similar return. Gold may well achieve that price, but
unless it is drastically on sale with investors in capitulation mode, I
have no interest in adding to my gold bullion position.
- Gamblers can buy
gold on $50 price declines, but investors should not touch gold unless
it is at least $100 on sale. Look out your gold price window this
morning. Is it $100 on sale? Don’t worry,
you’ll get a $100 price sale soon enough, and
much more. Gold will enter your personal surprise zone, and
mine. Will you take action on the buy side when it happens?
- Many investors have
quietly bought back into the market with some size in the $1680-$1765
area, after selling out into $1525. I call this action price chasing by
stealth. Gold appeared to break out to the upside from a falling wedge
or drifting rectangle. Maybe that’s what happened, or maybe
it’s just a mirage painted on the chart by the banksters.
- I sense substantial
frustration amongst investors who bought that apparent breakout after
selling out into the lows. Instead of blasting higher after the
breakout, the gold price looks now more like a chuck wagon that just
drove into quicksand. Embittered investors blame supposed “price
manipulators” for their current problems, when 100% of the
problems stem from failing to buy any gold when it goes on substantial
- Don’t compound
one mistake with another one. If gold falls to $1700, or even below that
price, remain calm. Hold your ground, regardless of what price you paid
for your gold. Never trade gold for dollars at a loss. It’s not a tiddly winks game that you bought. It’s gold.
- Gold was
“high” at $887 in 1980. Now that price is low. It
doesn’t matter if you pay $250 or $250,000 an ounce for gold. What
matters is the emotional state of your opponent, and whether you are
buying during a real price sale or not.
- Click this gold basics chart now. The lines I’ve drawn there
are horizontal support and resistance lines (HSR), but just because HSR
exists at a certain price doesn’t mean
you should be acting in the market at that price, especially in size.
Charts indicate potential scenarios for price, but
buying a price sale is the only way to build wealth in gold. From
where price sits this morning, the price range of $1650-$1665 represents
a real price sale for gold, and no buying of size should be done unless
price falls to that specific price area.
- On the upside,
$1800-$1825 represents almost $300 of price appreciation from the lows,
and only gold that was bought at $1525 or lower should be sold there.
Unless you are a gambler, don’t accept less than a $300 per ounce
profit for any gold you purchase at this stage in the crisis. Buy sales
that give you a minimum of $100 of price weakness, if you are serious
about coming out of the other side of this epic crisis fully intact.
- Click here now to view the junior gold stock price action,
via GDXJ. Note the highs near $31.68 and $30.65. The $30 price area is
significant overhead resistance. We “needed” this pullback
to make a serious attempt at breaking through that resistance. The short
term Stochastics indicator that I’ve
circled in blue suggests that this week should be a good one for gold
junior stocks, but it remains to be seen whether the low of $27.16 will
hold, or whether this new rally is only a break in the downside action.
The GDXJ price could still decline to the supply line of the wedge
pattern in the $23-$24 area.
- Investors should
generally be buying GDXJ on $3-$5 price sales. I buy it every dollar
down, increasing the size of my buys all the way to zero. The bottom
GDXJ line is that $27 is a good place to accumulate GDXJ, $23 is even
better, and $19 is best of all. Since you can’t know where the
final low will be, it’s critical to have capital in place to buy
GDXJ at prices that are deep inside your personal surprise zone!
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