Masters Series: The Gold Code – How to Make a Fortune on Gold in 2015
Editor's note: A new bull market is starting right now in gold... and people who invest today could soon be sitting on big triple-digit gains. But as Steve Sjuggerud explains in today's edition of our weekend Masters Series, you can do much better than simply buying gold.
In today's essay, originally published last month as a special report to True Wealth Systems subscribers, Steve details the reasons why gold could soon move much higher from here...
The Gold Code – How to Make a Fortune on Gold in 2015
By Steve Sjuggerud, editor, True Wealth Systems
A rare signal recently flashed "buy" in the gold sector...
This signal doesn't happen often. Two different signals actually need to come together for this to work. But when these signals converge, history shows that gold prices can explode higher.
A convergence between these signals has happened before every major move in the gold market over the past four decades.
Today, our systems have converged again. In short, a new gold bull market is starting right now.
This is something we have to take advantage of. It could lead to massive gains in gold in 2015. And we're making the investment in the most profitable way I know...
Thanks to the recent convergence, we have a rare opportunity to buy the gold companies that offer the absolute highest upside potential if gold prices take off – as we expect.
Let's take a look at our recent gold convergence...
Our "Gold in Currencies" System's Recent "Buy" Signal
Most investors have no idea what moves the gold market.
They have no idea how to spot a true bull market in gold... But we do.
You see, we've spent countless hours testing every possible way to profit in the gold markets. We've tested dozens of systems to see what actually causes gold prices to move higher or lower.
It turns out that finding a bull market in gold is easier than you might think. Consider this...
If gold's moving up versus the U.S. dollar, is that a bull market in gold? Or is it a bear market in the dollar?
History shows that gold moving higher versus only the dollar says more about the dollar than it does about gold. If you want to know when a true gold bull market kicks in, you want to see gold rise versus all major currencies.
That's what our Gold in Currencies System does. It works like this...
Each month, the system looks to see if gold rose versus the world's four major currencies... the U.S. dollar, euro, pound, and yen. If gold is up versus ALL four currencies in a given month (compared with the previous month), then we want to own the metal the next month. If gold isn't up, we don't want to own the metal the next month. (We have one secret that we can't give away, but this is the general idea of how it works.)
It's so simple, you could train a monkey to do it. But it really works.
The chart below shows what $10,000 invested in 1970 would have grown into with this system versus simply buying and holding gold. Take a look...
For the chart above, we assumed you had invested in 90-day Treasury bills (cash) when our system had us out of the trade. As you can see, this simple system crushed the return on just buying and holding gold. Your initial $10,000 would have turned into less than $300,000 with gold... But it increased to nearly $600,000 by using our system.
This system flashes "buy" less than a third of the time. But with gold outperforming the world's major currencies a few months ago, this system went into buy mode again.
And it's not the only system that recently flashed "buy." One month later, our second gold system did, too...
Our Second System for Gold Convergence... the Trend
We track two different systems for gold in True Wealth Systems...
The first is the Gold in Currencies System I described above. This system flashes "buy" when gold rises against all of the world's major currencies.
We also track the overall trend in gold prices. This is our second system, the Gold Trend System.
Gold has a history of extreme volatility. But those ups and downs also lead to predictable gains in gold.
You see, buying with the trend is a profitable strategy in most investments. I know a lot of investors hate to hear it... But when an asset is moving higher, it tends to continue moving higher. And when it's heading lower, it tends to continue moving lower.
Reversing course is tough. It requires the general sentiment of those buying and selling to change. And that can often take months, even years, longer than most folks would expect. That means simply following the trend can lead to solid gains.
This all works perfectly in the gold market. Our testing shows that buying when the trend is up (we can't tell you exactly how we calculate it) leads to big gains in gold. The way we usually buy gold in True Wealth Systems – with a double-long gold exchange-traded fund (ETF) – returns an average of 30% a year when this system is in buy mode. It's much more profitable than simply buying and holding gold bullion.
Our Gold Trend System calculates the turning points in the gold market. It gives us a "buy" signal when the trend moves from down to up. And our Gold Trend System recently flashed "buy."
This gives us a rare opportunity...
You see, when both our Gold in Currencies and Gold Trend systems are in buy mode, we have a gold convergence. We have everything in place for a major rally in gold prices. These convergences happen before the absolute largest gains in gold.
For example, the first time these numbers converged was on November 30, 1971. Gold prices soared by more than 300% in the next three years. Take a look...
It happened again in the late 1970s... these two systems converged on November 30, 1976 and gold prices soared...
This time gold soared by more than 500% in just a few years.
Not surprisingly, these systems converged last decade, just as gold prices entered a decade-long bull market.
On September 28, 2001, these systems converged. Gold prices spent the next 10 years moving higher... And eventually soared more than 500% before peaking in 2011...
Today's signal could be the beginning of another move higher in gold prices.
To take advantage of this, we don't recommend simply buying gold. That will likely be a profitable trade... But we can do much better.
In True Wealth Systems, we're making a trade similar to what I did back in 2005 to profit from soaring gold prices. We're buying three companies that will absolutely soar as gold prices move higher.
Hundreds of percent gains are possible. And now is the perfect time to buy, thanks to the recent convergence opportunity we've seen in the gold market.
Good investing,
Steve Sjuggerud
Editor's note: Steve just put together a presentation detailing how you could double your money this year in gold. Right now, he believes that one type of gold investment in particular could be much more lucrative than nearly anything else. If gold prices rise 10%, this group of stocks could move 100% higher. Learn more about this opportunity and True Wealth Systems by clicking here.