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How much longer are you going to let Wall Street
determine the price you are permitted to charge for your product?
How much longer will you stand by and watch as computer
traders raise and mostly lower the price of your product, by selling
contracts in the futures market for metal they do not own, and do not
produce?
(Bud Conrad at Caseyresearch.com has just written an
excellent article, with a number of charts, on this subject titled:Paper
Gold and its effect on the Gold Price.)
Now is a TIME FOR ACTION on your part.Its time to take
charge of your industry.
Here is a simple plan that will work wonders.
Sell your production into the market to keep your cash
flow going.Then, instead of putting the money in the bank, put it into a
stock trading account at a reputable brokerage firm.If you produce mostly
gold, buy the Sprott Gold Trust, PHYS, or the Royal Canadian Mint Gold Trust,
MNT.TO.If you produce mostly silver, buy shares in the Sprott Silver Trust
PSLV.(Be sure and buy only shares in trusts, and avoid paper money
substitutes!)
Your action will cause these trusts to go into the market
and buy the metal that you have just produced, and keep it away from the
futures market, thereby sharply reducing the available gold and silver that
the boys from Wall Street play with.The money invested in these trusts is better
than money in the bank, for it is backed by gold and silver!If you
believe in your industry, you know this to be true.When you need cash you
simply sell a portion of the shares you own.Youll have the cash to work
with, just three days from the day you make a sale.
If you are an explorer, and you have just completed a
distribution, dont put the money in the bank - buy gold and silver trusts,
as detailed above.
If you are worried that prices could go still lower, here
are some charts to show you that the precious metals are ready to turn back
up, and that this is a perfect time for you to take charge.
(Charts courtesy Stockcharts.com unless indicated).
This chart courtesy Seasonalcharts.com shows November is
historically a positive month for gold, especially if there was a dip during
October.
This chart courtesy Federal Reserve Bank of St. Louis shows
the M2 Money Supply continues to rise.No tapering here.The FED is one of
five major, along with dozens of minor central banks, involved in the
destruction of currencies.This steady destruction leads to a search by
investors, who are eager to protect their net worth, to look for alternatives
to currencies.Gold and silver are perfect investment alternatives to cash,
with 5000 years of history to prove their safety.
Featured is the daily bar chart for gold for Friday Nov
7th.Price produced an outside upside reversal on the highest volume in at
least 12 months.(This type of reversal is usually an indication that a major
turn is taking place).The supporting indicators are turning positive.Confirmation
of a major bottom will come with a breakout at the blue arrow.
Featured is the Index that compares mining stocks to gold
bullion.The Andrews Pitchfork suggests that the trend that has favored
bullion over miners since August, is turning back in favor of mining stocks.
In a gold bull market, we expect mining stocks to take the lead over bullion.
This chart called the puking camel, courtesy Brian
Kelly, Tradingview.com shows that we have arrived at a very important turning
point in the comparison between gold and the US dollar; When enough gold
bulls have reached the puking point, (including some well-known
analysts), the sector is very likely ready to turn around.
IMPORTANT:Please send this article to your favorite
mining CEO.Its high time these people took action to protect and preserve
their industry.
Peter Degraaf is an investor with over 50 years of
investing experience.He publishes a daily report for his many subscribers.For
a copy of a recent report visit www.pdegraaf.com or send an Email to itiswell@cogeco.net.
Note:Please do your own due diligence.Peter Degraaf is
NOT responsible for your trading decisions.
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