Gold fell $23.40 yesterday, closing at $657.50 on the June futures contract.
Good!
That brings it right down to firm support levels. And it opens up major new opportunities for investors. Ditto for oil, copper and other commodities — also down yesterday and also finding firm support at these levels.
So if you’ve got investments that are based on gold, oil and other resources, you’re in very good shape.
Moreover, now there’s a new, powerful force on the immediate horizon:
China’s New Gold ETF Could
Help Drive Gold to $1,000
Very soon, China is going to be launching a new gold exchange-traded fund (ETF), tentatively named “the GoldExpert.”
This will give 300 million middle-class citizens in China — more than the entire population of the United States — immediate access to gold. Even if only a small fraction of the 300 million buy the new gold ETF, it’s bound to send gold prices through the roof.
And I think it will create the biggest gold bonanza in half a century. Indeed,
Three years ago, when gold purchases were legalized in China for the first time in 54 years, I told readers that it would unleash a new surge in gold demand. And that’s exactly what happened: Chinese citizens bought gold with both fists.
Now, the introduction of this new gold ETF in China could generate an even larger and broader gold rush. It will open the floodgates for tens of millions more Chinese investors to buy gold in any amount, large or small.
Remember: Here in the U.S., the gold ETFs are the fastest growing ETFs in history. Over $8 billion has poured into just one gold ETF, a factor that has helped nearly double the price of gold. So …
I have no doubt that the new gold ETF in China could easily send gold to over $1,000 an ounce — and beyond!
Why the Gold Buying Is
About to Begin Sooner
China’s four largest banks are sponsoring the Chinese gold ETF:
- Bank of China,
- Industrial and Commercial Bank of China,
- China Construction Bank, and
- Agricultural Bank of China
These are large institutions. They fear that when the new gold ETF debuts, there will be a mad rush by millions of Chinese investors, and it could be difficult for them to buy the needed gold all at once. So they want to secure adequate supplies now, ahead of time.
This Gives Us Everything
We Need to Take Action Now:
So there you have it: A powerful, new force coming into the gold market that is not yet reflected in current gold prices.
Plus, at the same time, you have the sharp correction in gold, right down to firm support levels on my charts.
To me, that’s a perfect combination. It’s why I am finalizing my next gold options recommendations right now. And it’s why I’m planning to get them out early next week. Here are the specifics:
The goal: To jump on this correction in gold and turn a modest $4,800 investment into as much as $21,500.
My forecast: I think gold is going to zoom to $1,000 and beyond. But it doesn’t have to rise nearly that far to achieve my goal for this recommendation. All it has to do is rise 15%.
The vehicle: Select call options on gold and gold mining shares, giving you incredible upside profit leverage.
The risk: Strictly limited to the amount you invest, plus your broker’s commissions.
Examples: One of the options I’m looking at right now lets you effectively control about $70,000 worth of gold for as little as $1,200.
Think about that: If you were to buy that much gold, you’d have to shell out $70,000. But with these options, all you have to do is invest about $1,200 to effectively control the same amount of gold.
With $70,000 worth of gold working in your favor, you can see how a small rise in gold’s price can easily spin off big profits. I figure all we need is a modest 15% rise in gold to spin off about a 348% return. Each $1,200 option could become worth as much as $5,375.
Buy 4 (your cost: about $4,800) and you could walk away with $21,500, less broker commissions. Buy 8 and you could walk away with up to $43,000! All in as little as a few weeks!
Are profits guaranteed? Of course not. As with any investment, losses can and do happen. But even if gold rises only 7% or 8% at this juncture, the profit potential is still huge.
And even if I’m totally wrong, as long as you stick with my strategy, the most you can lose is your original modest investment plus any commissions you pay your broker.
That lets you sleep nights. And you’re not betting the farm.
Gold Trader Hotline Racks
Up An 86% Win Ratio!
The service I provide to take advantage of these kinds of opportunities is my Gold Trader Hotline.
From January 3, 2005 through today, of the 50 closed recommendations that we’ve made, my Gold Trader Hotline has delivered 43 winning trades and only 7 losers (excluding broker commissions). That’s a win ratio of 86%!
Some of the recent highlights …
223% on call options on Glamis Gold, in a little over four months!
175% gains on calls in Agnico Eagle, in a little over two months!
184% gains in calls on Newmont Mining, in less than two months!
180% gains in calls on US Steel, in just over 3 months!
225% gains in calls on a gold and silver index, in just six weeks!
Past performance is no guarantee of future results, and these gains don’t consider commissions or the slight variations in prices subscribers may have received.
But, with the virtually unlimited upside potential (and strictly limited downside) that options offer, that’s one heck of a track record, if I do say so myself.
Here’s What I Propose …
First, on Tuesday of this coming week, I will rush you my strategy designed to transform a modest $4,800 into up to $21,500 very quickly. I will tell you exactly what to buy, when to buy it, how much to buy, what to pay for it, and precisely what instructions to give your broker.
Second, I will send you follow-up instructions on when to take profits, add new positions, or get out of a position to cut a loss.
Third, as the gold market zooms higher, I will give you one new recommendation after another, each designed to give you the maximum leverage without ever risking more than you invest. That way you can relax when gold suffers a correction, something that will happen from time to time.
You’ll get about 25 – 30 new recommendations per year. And when I see a special situation in a related market such as silver, copper, platinum or palladium, you can bet I won’t pass it up.
Fourth, in case you’re new to some of these markets, I will send you my Operating Manual, which gives you the A-B-C’s on how each of these markets opens up such big profit opportunities for you … and which instruments to use.
For example, I show you how options give you incredibly powerful leverage on the upside. How they limit your risk. How you can maximize potential profits … how to reduce commission costs … what to ask your broker … and much, much more.
I show you how to use options on stocks and options on futures. I also show you why I don’t think you should get involved in futures contracts themselves. Stick with options. That limits the risk.
Fifth, if you have questions, you can call or email us any weekday any time, and we will give you our best answers as soon as possible.
The yearly cost is $5,000. But in light of this once-in-a-generation bull market in gold, I want to give you two years for the price of one. You save $5,000.
If you can’t afford to spend $5,000 without worrying about it — or jeopardizing your capital — don’t join. I cannot guarantee profits, no one can.
But here’s what I can guarantee: If you’re not satisfied with the service — for whatever reason — you can write us at any time and cancel the service. We will immediately give you a refund on the pro-rated amount of your subscription, with the first year valued at $5,000.
DEADLINE: Monday, May 22!
Because this correction in gold is sharp, it’s likely to be short-lived. So I’m moving quickly. Tuesday morning, I’m going in with both fists with new, exciting recommendations that I believe could result in some of the quickest, easiest money yet in the gold market.
If you want to make sure you’re on board in time for my recos going out Tuesday morning, you must respond no later than midnight, Monday, May 22.
But don’t wait to the last minute. Join now. There’s nothing like a bull market in gold for rip-snorting profits — like the potential to turn a $4,800 investment into $21,500 with just a modest 15% rise in gold. Just for starters.
Pick up the phone and secure your membership slot and my next set of recommendations now!
The number to call is 800-408-0081. Oswaldo and Cindy are at our Jupiter, Florida headquarters today to take your call.
Best wishes,
Larry
For more information and archived issues, visit http://www.moneyandmarkets.com.
About MONEY AND MARKETS
MONEY AND MARKETS (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Colleen Collins, Amber Dakar, Ekaterina Evseeva, Monica Lewman-Garcia, Wendy Montes de Oca, Jennifer Moran, Red Morgan, and Julie Trudeau.
© 2006 by Weiss Research, Inc. All rights reserved.
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