Categories

Investing Personal Finance

Tools

  • Economy & Politics
  • Investing
  • Personal Finance
  • Related Posts


    14 Stocks That Hold Up Best At Market Highs
    Gold & Bond Yields Slide As Stocks Continue Hawkish Surge
    New York Fed: ‘Could The Dollar Lose Its Reserve Status?’
    China Push For Gold Pricing Power Continues, Grant 3 New Import Licences
    The Secret Reserve Currency Life Of The Renminbi
    Free Money For Germany Is Bad News For Euro
    Target’s Troubles Go Deeper Than Data
    The Investor’s Definition Of Insanity
    DLTR, SHLD Top Thursday’s Hot Stocks To Watch
    The Apple-IBM Deal Has One Clear Winner: You
    U.S. Jobless Claims Fall, Bolster Labor Market Outlook
    Family Dollar Rejects Dollar General Offer On Antitrust Worries
    After Russia Targets McDonald’s, Businesses Wonder Who’s Next
    Fed’s George Says U.S. Economy Is Ready For A Rate Hike
    Futures Edge Higher Ahead Of Jackson Hole Meeting, Data


    What Our 47 Percent-A-Year Gold System Says Now

    You could have turned $10,000 into more than $3 million by trading gold, if you had invested following the principles of our True Wealth Systems gold strategy.

    The system is incredibly simple, actually, but it has delivered 47 percent compound annual gains when “in the trade.”

    Today, I will share with you the basics of how our incredible gold system works, and what it is saying about gold today.

    Our True Wealth Systems gold system simply attempts to identify bull markets in gold.

    So let me ask you: How do you know when it’s a bull market in gold? In True Wealth Systems, we have two systems for this.

    The first system is this: It’s a bull market in gold when the gold price is going up against the world’s most important currencies.

    We took a look at the four most widely traded currencies: the U.S. dollar, the euro, the British pound and the Japanese yen. And we tested various systems based on a simple concept.

    If gold is up versus all four currencies over the previous month, buy gold. Repeat the next month. (To smooth out the daily fluctuations in gold, we use the average gold price in each currency each month for our signal.) Historically, when gold is up versus the major currencies in the previous month, a double-long gold index rises at a compound annual rate of 39 percent.

    The results of this one particular strategy over the past more than 40 years have been incredible.

    If you simply bought a double-long gold fund when you got a signal and then switched to Treasury bills when the signal was off, you would have turned a $10,000 investment in 1971 into more than $3 million today.

    Since 1971, the price of gold has risen at a compound annual rate of 9.5 percent a year. By using this much-less-volatile system, your wealth would have compounded at 15.1 percent a year.

    This system is simple, but it’s sound. History shows that a great predictor of when gold will go up is when it’s already going up versus the major currencies.

    Going up versus all four currencies is a tough standard for gold to beat every month. So you’re only “in the system” about one-third of the time.

    Our second system is “in the trade” much more frequently than our first. It is our “trend” system.

    The trend system is simple: You own gold when its long-term trend is up. Going back 40 years, when gold is in an uptrend, a double-long gold index rises at a compound annual rate of 29.5 percent.

    By itself, each system is good. But you really want to be invested when both systems are firing. That’s when you make the biggest gains.

    A double-long gold index has increased in value at a compound rate of 47 percent a year when both of our gold systems are in buy mode. Both indicators are in buy mode only about a quarter of the time.

    And right now, neither system is in buy mode.

    Neither system has been in buy mode since October, and that has been the right call in gold. The precious metal has fallen about 10 percent since then.

    Our True Wealth Systems gold strategy really delivers. It’s simple and intuitive, and it can make you a lot of money. In short, you want to be in gold when it says buy. And it’s not saying to buy yet.

    Based on our powerful True Wealth Systems gold strategy, there’s no hurry to pile into gold.

    Good investing,
    Steve Sjuggerud

    This article was originally published on Feb. 21 at DailyWealth.com.

    Dr. Steve Sjuggerud is the founder and editor of one of the largest financial newsletters in the world, True Wealth. Since inception in 2001, True Wealth readers have made money every year with safe, contrarian investment ideas. Steve did his Ph.D. dissertation on international currencies, he's traveled to dozens of countries looking at investment ideas, and he's run mutual funds, hedge funds, and investment research departments. Steve's investment philosophy is simple: "You buy something of extraordinary value at a time when nobody else wants it. And you sell it at a time when people are willing to pay any price to get it." It's harder than it sounds, but Steve continues to be able to do just that for his readers. Click here to learn more.

    | All posts from Dr. Steve Sjuggerud

    Discuss this Story:

    Comment Policy: We encourage open discussion. Comments including racist statements, profanity, name calling or spam will be removed at our discretion. We use filters for spam protection. If your comment does not appear it is likely because it violates the policy.

    Sears Posts Loss For 9th Straight Qtr As Sales Fall Again
    Euro Steadies At 11-month Low As Dollar Reigns
    Business Growth Slows In China And Europe, Russia Sanctions Still To Bite
    China Taps South Korea For Ideas In Qualcomm Antitrust Case
    China Economy Fears Deepen As August HSBC Flash PMI At 3-Month Low
    Icahn Reveals Stake In Hertz, Plans To Push Management
    Growing Up Poor Affects Adults’ Sense Of Control, Impulsiveness When Faced With Economic Uncertainty
    China Becoming Global Gold Hub And Gold Price Discovery Center
    China Bond Default Risk Reignites, Despite “Never Anticipating Any Risks”
    Gold’s Sudden Ignorance Of Geopolitical Risk
    Why So Much Anger In Ferguson? 10 Facts About The Massive Economic Gap Between White & Black America
    Jack Lew’s Worst Nightmare: China’s Currency Should Be 20 Percent ‘Weaker’
    Fed Fueled M&A Destroys Capital
    Market Snapshot: U.S. Stocks: S&P, Dow Edge Lower Pre-Fed Minutes; Target Drops
    Americans Pay Too Much For Bad Data Plans
    U.S. Mortgage Applications Rise In Latest Week
    Staples Says Weakness In Core Office Supplies Hurting Sales
    Home Improvement Chain Lowe’s Cos Cuts Sales Forecast
    Citigroup Seeks To Exit Japanese Retail Banking
    Global Stocks Halt Rally, BoE Jolts UK Markets
    China Fines Japanese Auto Parts Makers Record $201 Million For Price-fixing
    Amid Investor Pressure, PetSmart Says To Explore Sale
    ISIS Gets Angrier At America: ‘We Will Drown All Of You In Blood’
    Housing Permits, Starts Surge Driven By Renewed Rental Housing Scramble
    A Brief History Of US Money
    Starting This Year, Minorities Will Outnumber Whites In U.S. Public Schools
    Is Your Airline Poisoning You?
    What To Look For In Dueling Autopsies Of Michael Brown
    How To Profit From The World’s “Scariest” Stock Exchange
    Biogen Idec Gains On FDA Approval Of New MS Drug
    Read more from Investing...

    Liberty Investor Digest

    Get today's most important
    financial headlines all in
    one place by email!



    Sources


    close[X]

    Sign Up For Liberty Investor Digest™!

    Get Liberty Investor Digest FREE By Email!

    Input your name and email address in the fields below and get today's most important financial headlines sent straight to you inbox!

    Privacy PolicyYou can opt-out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.