Lighting a Golden Candle

By seadmin

The fear factor in the global markets is intensifying, and what asset class usually gets a lot of love when the fear meter is pegged to the max? You guessed it, gold.

On Tuesday, gold prices hit a new all-time high, as money moved out of equities and into the yellow metal. As you can see by the chart below of the SPDR Gold Trust (GLD), investors have lit a golden candle since the fund broke above its 50-day moving average (blue line) in early July. In fact, over the past month, gold has seen a surge of nearly 10%.

We all know gold is viewed as a safe-haven asset class, but not because of some inherent value qua gold. Yes, gold’s limited supply on planet earth — and its difficulty to locate and extricate from the ground — makes it perfect for its original use as a form of currency. Yet those characteristics are not the reasons why anyone should want to own gold.

The ultimate reason you should want to own gold and related precious metals, as well as the companies that mine these metals, is because you want to be a successful investor.

Gold and other precious metals — and more specifically the exchange-traded funds (ETFs) pegged to the sector’s fortunes — can be thought of as a high-caliber weapon in the battle for investment return supremacy. But before you can put these big guns in your arsenal, you’ve got to learn all of the essential specifications. You’ve got to familiarize yourself with the best gold and precious metals’ funds, and you must know how they work and what stocks or physical metals each specific fund holds.

Right now, I am putting the finishing touches on a new special report with all of the details on how to invest in this golden asset class. Stay tuned to the Alert each week, as we’ll have more details on how you can get your copy of this very special FREE report.

Jim Woods is a 30-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor.

His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. Read more about Jim Woods.

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Lighting a Golden Candle