To 321gold home page
Home   Links   Editorials

Gold & USD: Tactics To Get Richer

Stewart Thomson
email: stewart@gracelandupdates.com
email: stewart@gracelandjuniors.com
Jan 11, 2011


1. Gold blasted through $1380 early this morning! Your gold bullion pile, marked to paper currency model, just rose by approx. 1.5% in value from the $1360 area lows!

2. Good news, and, perhaps, congratulations to you.

3. Before you break out your champagne, however, could I “bother you” from your calculations, to ask just one teeny question: Marked to market weight, did your gold bullion pile increase in number of ounces from $1360? That would require a yes or no answer.

4. US dollars are currency. Not money. There’s a significant difference between currency and money, and understanding that difference is key to real wealth building.

5. Your wealth building.

6. Ounces of gold bullion weight is how money is measured. That’s not a tongue twister, nor a game. It’s a fact. Those of you who hold the same amount of gold now as you did as $250 an ounce are not any richer. Those around you got poorer. That doesn’t make you richer. If those around you have financial cancer does that mean you are getting younger? No. Likewise, you don’t get richer unless you increase the number of ounces you hold.

7. 2011, I have predicted, is the year of the Gold Punisher. I’m not interested in protecting myself against hyperinflation, nor against any paper money end game. I’m interested in getting richer.

8. He who has the most gold makes the most rules, not he who values his microscopic amount of gold dust at the highest paper dollar price. He who has the most gold is the richest. I view the current gold vs paper money valuation obsession as a sickness. Gold ounce weight vs paper currency pricing, as a wealth measurement battle, is like a human being armed with a supercomputer taking on a lobotomized chimp, in an intelligence battle. Yet, horrifically, here we are, in what feels like the downtown core of: Chimp City.

9. Paper currency answers to Gold. Not the other way round. If you are measuring your gold, ultimately, in paper money, you don’t really understand what Gold is. Step up to the ounces of wealth measurement of richness plate for 2011. Or step up to the bread line. Because that’s what is, really, at stake as the ultimate risk of failing to make the accounting move.

10. Don’t wish for something too hard, or you just might get it. Here’s your Paper Currency Versus Gold Bullion Money Chart. How does that look? Still think paper is the big buy? Ben Bernanke wants you hurry, go get that paper currency before you miss out, before it gets away!

11. You now have only 2 billion opinions on “playing the gold correction against paper money”. Back in the real world, the gold world, I’d like you to take notice of what happened the last time the paper currency technicians’ pet indicator, MACD, gave a screaming paper currency buy signal against Gold. A major screaming buy.

12. Here’s that “buy signal” highlighted. Massive Buy Signal For Paper against Gold Money.

13. Look at what happened to team MACD when they took on what Gold is: They, and their box full of teckie crayons, got 100% obliterated by GOLD. Their paper currency buy signal fantasy went straight down the drain against gold. Now it’s all going to be different with their newest paper currency superbuy, correct? Maybe it is. Meantime, click here now to view what appears to be Ben Bernanke in front of US Congress, singing the US Dollar Theme Song For 2011. Movie

14. Still think the dollar is a roaring buy? Click here now to view a 100 YEAR PAPER CURRENCY CHART. (courtesy Wood/Dunnigan). I think you should be using any rally in paper currency/widgets to book profit in paper against your base currency, which should be: ounces of gold. Gold doesn’t rise or fall against the dollar. The dollar rises and falls against gold, and therefore paper currency answers to Gold. The dollar is your tool to get more gold. If you are interested in getting richer.

15. The rising price of a fixed amount of gold in dollars is a measurement of how much poorer everyone else is getting, not an indication of how rich you are getting. You’ll build nothing, no wealth, by the end of this bull market, even at $100,000 an ounce, if you have no more ounces than when it started. True, everyone else might be on the bread line, but you still aren’t any richer. Get more gold. Instead of breaking the financial rules, start making them!

16. Gold stock, unfortunately, can be diluted. It trades against paper currency. Still, gold stock is leveraged to the gold price, so by definition it is a wealth building tool when gold is rising significantly against paper currency. The gold $1400-$1700 area is one that could see gold stocks suddenly recover all the “lag” they have displayed, generally, compared to bullion. It is not an area to risk missing, especially when your supposed reward is a microscopic rally in paper currency! If you think that will make you richer, go for it.

17. Unlike bullion, gold stock wealth cannot be measured absolutely in shares, because shares can be diluted while ounces can’t. That’s a real risk, but if you accept it, the possible upside reward for gold stock in 2011 is mind boggling.

18. Here’s the GDX Chart. Price is 12% on sale for you in terms of paper currency right now. Please take that gift to you, courtesy of Mr. Market. Now is a place to at least buy some gold stock. Eight more corrections like this would put GDX at zero, an unlikely event. The volume is the only technical indicating lower prices against paper currency could occur. Rather than guessing at how many consecutive 12% sales you might get in a pipedream, focus on really buying one. This one.

19. The above chart is GDX is in paper currency. Here’s the GDX in money: GDX to Gold Bullion Chart. A lot of investors are dumping gold stocks for bullion. Wrong move. This chart says to me that gold stocks are a screaming buy against bullion in the short term. In the long term, they look like a gold stocks spaceship sitting on a bullion launchpad. Are they at a bottom? If you are asking that question, you are making a wealth-building error. Don’t bottom call gold stocks, nor any asset. Buy them in a pyramid formation of risk capital allocation, to zero in paper currency terms if need be.

20. Here’s a short term look at gold on the Comex this morning. Remember my $1410-1360 Gold buy pyramid, the one I told you to end the buys down to around $1350? $1350 allowed you to catch the gold thrown away by the paper currency chasers as the $1360 technical support broke. Look at the price now: Kachingo Time For You Chart. I’m not sure how team “Gold Correction against Paper Currency” is feeling this morning, let’s hope they are all OK. I’m not on team “Correction”. Nor am I on team “Gold Answers To Paper Bugs”, and I’m most certainly not in the growing line-up standing in front of the photocopier machine clamouring to get Ben Bernanke’s autograph. The team I’m on is called, “More Ounces Equals More Richness”.

21. What team are you on? Today I’ve tried to show you the difference between protecting yourself (from the bread line?) and getting richer. If you absolutely had to choose one course of action, given what I’ve laid out here today, which sounds better to you: Maintenance of purchasing power, or getting richer? The reason the “banksters” buy gold in a pyramid formation as it drops against paper currency, then sell it into strength, is not to make more paper currency, but to get more ounces of gold, to get richer. Let’s hope they didn’t get yours.

22. I hope Gold goes below $1360 against paper currency, and then below $1315, so I can buy more ounces of gold richness, and more shares of gold stock. There’s a risk it actually doesn’t, but instead blasts higher, leaving the paper bugs squashed by Gold, for only the ten billionth time.

23. Almost the entire gold community is talking correction of gold against toilet paper currency, which makes me very suspicious of just how much more gold I’ll really be able to buy at lower prices. Again, gold $1400-$1700 is an all-critical pricing area for gold stock, so it is obviously all-critical that you don’t get overly excited about any paper currency rally against gold money, here and now.

24. I have a lot of paper currency I’d personally like to unload, but I’m becoming more and more sceptical about this paper currency rally, and I wonder just how much profit, if any, I’ll really be able to book. If I, and you, are able to book profit as paper rallies, remember that your prime base currency as a financial realist, must be…Ounces of physical gold!

Jan 11, 2011
Stewart Thomson
Graceland Updates
website: www.gracelandupdates.com
email for questions: stewart@gracelandupdates.com
email to request the free reports: freereports@galacticupdates.com

Tuesday 23rd Apr 2024
Special Offer for 321gold readers
: Send an email to freereports@galacticupdates.com and I'll send you my free “CDNX: The Outperformers!” report. I highlight key CDNX stocks that appear immune to the current sell-off.  Solid buy and sell tactics for investors are included in the report!

Graceland Updates Subscription Service: Note we are privacy oriented. We accept cheques. And credit cards thru PayPal only on our website. For your protection we don't see your credit card information. Only PayPal does.

Subscribe via major credit cards at Graceland Updates - or make checks payable to: "Stewart Thomson" Mail to: Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 / Canada

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am. The newsletter is attractively priced and the format is a unique numbered point form; giving clarity to each point and saving valuable reading time.

Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

Are You Prepared?

321gold Ltd