Friday, February 5, 2010

Trading Gold & Gold Stocks


With the exception of joe, the rest of us should buy Clif Droke's new book on how to trade Gold & Gold stocks: .The best 20 bucks ya ever

From clif:
Gold has garnered its fair share of the investment spotlight in recent times and for good reason – the yellow metal has outperformed virtually every major asset category and remains a favorite long-term investment the world over due to its intrinsic worth.

Gold’s value as a hedge against runaway inflation is well known. Less well known is its benefits as a store of value in runaway deflation. This is an important consideration for investors given that the final “hard down” phase of the Kress 120-year cycle begins in 2012. Along these lines, the current interest rate policy of the Federal Reserve is beneficial to the long-term gold outlook. When the Fed funds rate falls under the consumer inflation rate, gold comes into its own as an investment. This happens because investors have a hard time getting an honest return on their money and so turn to the yellow metal as a safe haven. Paul Kasriel, chief economist at the Northern Trust Company of Chicago, pointed this out at the commencement of the gold bull market several years ago. He observed that when the Fed funds rate falls to 1%, gold always shines.

Gold and gold mining shares offer excellent trading opportunities for retail traders due to their liquidity and tendency to trade in repetitive patterns. By using a series of reliable technical indicators and moving averages, a trader can realize immense gains over time sticking to a trading discipline proven to work. It was to that end that I wrote, “How to Trade Gold and Gold Stocks” at the commencement of the gold bull market in 2001. The book discussed a number of simple yet effective techniques for profiting in the gold and PM shares markets. Also included are considerations for sound fundamental analysis of the mining stocks.


  1. What a reversal for S&P, what happened?

  2. probably short covering on the market but miners were monsters......soooooo....look for confirmation next week

  3. Yep, weez had one there darn good tradin days there Kli, ole Palmer diggin around and smashin that oil trade, Red seems like he may have the ole swine flu, sayin he's sick in a big down day, just doesn't have the kahoonahs to take that there trade on, gots those old monthly BBs running around SPX 1025, frozen in front of his TV vegged out on dogfood, probably even has some of the Vegan stuff wrapped up and frozen in his freezer. You got some of those english speakin folks with special language there comin out, set us people straight and give us some of that upward stuff in those stocks we're hittin. You still smokin some stoggie bettin on those miners, or have you gone all into that fetal position here, suckin your thumb like a newborn over there in the corner?

  4. Anon, it is quite obvious you have had a heavy diet of paint chips as well as some overly concentrated in-family propagation of the family line. Be careful, the gene pool tends to flatten out after awhile. Let's bring you current with some music to pass the time:

  5. Hope infusion, had to dig with everything I've got to find it:

  6. Twinky, is that you buddy, how is the weather in st paul? I feel bad your mom and dad were brother and sister, it's not your fault. Talking hillbilly is not your cup of tea.