There’s a great opportunity at the moment for anyone ready to make a decisive move in gold.
With the Federal Reserve's FOMC meeting coming very soon, there is a trade that I believe will realize a few +10 percent gains.
The obvious play is as follows…
Purchase stocks in gold before the FOMC meeting, either today or tomorrow. Then sell on Thursday.
We are expecting a pretty soft announcement from the Fed regarding its benchmark figure, no one is really thinking they will move it, so investors and financial organizations are probably betting short on gold stocks and long on the greenback.
This should encourage the smart investor to take our advice and buy up gold stocks, as optimistic news will carry off the greenback longs, and gold will be affected in the opposite way by the shorts.
The only logical outcome is a gold price increase.
I was reminded by a trusted friend at Pana Mining Holding Group that a similar scenario occurred during an FOMC back in March.
I’m purchasing gold today and will be making more than a couple of quick profits Thursday.
A few of the main gold contenders are New Gold, Gold Fields Ltd. and Goldcorp.
Goldcorp is a very popular, low end gold company that closed late last week at $17.09. How far down do I think that could go? Possibly to the $15 mark over the next couple of days. Not a bad entry point at all.
Gold Fields Ltd. produces slightly more upmarket gold and has facilities from Africa to South America to Australia. Its shares closed at just over $4 but could lose 50 cents.
New Gold is a similar multinational mining company with gold, silver and copper containing assets all over the globe. It also engages in significant exploratory work. Their shares lost a little bit more than expected last week going down to $4.46 but there would be no shame buying this one up at about $4.10.
There are a few more possibilities including a couple of nice vector ETF’s like Gold Miners and Junior Gold Miners which both track the sector performance and have given a lot back to investors historically, especially 5 years ago at the height of the gold boom.
Both of those will see a +10 percent gain or more on Thursday and are well worth backing. If you want quick profits, get in gold now.
