The Trader's Great Gold Rush: Must-Have Methods for Trading and Investing in the Gold Market

by James DiGeorgia

• ISBN13: 9780470431320
• ISBN10: 0470431326
• Format: Hardcover
• Copyright: 2009-10-01
• Publisher: Wiley

Summary

The Trader's Great Gold RushMust-Have Methods for Trading and Investing in the Gold MarketJames DigeorgiaPraise for the trader's great gold rush"James DiGeorgia is the best expert I know when it comes to investing in gold bullion. ?This is not your father's gold market anymore, so getting the right information from the right people is key to helping you succeed as a gold investor." -Tom Mcclellan, Editor, The McClellan Market Report, ?#1 Ranked Ten-Year Gold Timer (1999-2008)?"James DiGeorgia is a stalwart of precious metals. He draws on a lifetime of interest and commitment in The Trader's Great Gold Rush to inform you about 'tricks of the trade' that will come in handy as you seek to protect yourself from the looming solvency crisis of the U.S. government. This is a good book. But you have to read it now. Don't wait for the movie." -JAMES DAVIDSON, founder, Agora, Inc., and Editor, Strategic InvestmentThroughout history, gold has been a safe haven in times of political and economic crisis. Right now, gold's fundamentals are remarkably strong, says veteran commodities market analyst James DiGeorgia. In fact, gold is poised to boom-reaching, DiGeorgia predicts, as high as $2,500.From the fundamentals of investing in the gold market to the 17 common pitfalls to avoid, The Trader's Great Gold Rush tells you everything you need to know to take advantage of the coming surge in gold.This is the perfect time to invest in gold.And this book will show you how.

Table of Contents

An Introduction to Today's Gold Market	p. 1
Why Gold Is Going to $2,500	p. 3
Why Is Gold Valuable, Anyway?	p. 3
Gold's Role in the Global Economy	p. 4
Bank Runs on the National Level	p. 6
The Betrayal of the West	p. 7
Gold Is Set Free	p. 9
Four Forces behind Gold Prices	p. 10
Where Are These Forces Going?	p. 13
What the Gold Bull Market Will Look Like	p. 13
Bullish Fundamentals	p. 15
Three Sources of Supply	p. 15
Two Sources of Demand	p. 16
Declining Supply and Surging Demand	p. 18
Mining Supply Is Declining	p. 19
Secondary Supply Is Increasing	p. 21
Supply from Official Transactions Is Declining	p. 22
Fabrication and Jewelry Demand Has Declined-Not Necessarily Bad News	p. 24
Investor Demand Is Surging	p. 25
A New Source of Gold Demand	p. 27
An Important New Force in the Gold Markets	p. 28
How Gold ETFs Work	p. 30
The ETF Impact on the Gold Market	p. 32
An Unexpected Effect of the Gold ETFs	p. 33
Gold, Inflation, and the Federal Reserve	p. 37
What Is Inflation, Anyway?	p. 38
Political Hypocrisy	p. 38
Why Gold Benefits from High Inflation	p. 39
A Century of Constant Inflation	p. 39
A Healthy Economy Should Not Experience Long-term Inflation	p. 41
How the West Went Wrong	p. 42
The Federal Reserve System Is Inherently Inflationary	p. 42
Monetizing Government Debt	p. 43
Setting Reserve Requirements	p. 44
Acting as a Lender of Last Resort	p. 46
How the Government Uses Inflation to Steal from You	p. 47
A Fourth Reason Why Our Economy Is Now Inherently Inflationary	p. 48
An Inflationary System Is Great for Gold Prices	p. 49
Notes	p. 49
Skyrocketing Debt, Plummeting Savings	p. 51
The Dismal Financial Situation of American Consumers	p. 52
The U.S. National Debt	p. 52
Our National Debt: A Stack of $100 Bills, Over 8,244 Miles High!	p. 54
While the Ship Sinks, Washington Drills More Holes in the Hull	p. 55
Why Our Personal Debts Are Bullish for Gold	p. 57
How the National Debt Will Make Gold Prices Soar	p. 58
Gold Will Leap Up Even If No Mass Sale Occurs	p. 59
Why Our Nation Will Never Get Out of Debt	p. 59
Why Neither Consumers Nor Our Government Can Ever Get Out of Debt	p. 61
When Debt-Based Currencies Collapse, Gold Soars	p. 62
The Social Insurance Time Bomb	p. 63
Defining Our National Deficit	p. 64
Our Leaders in Washington Are Lying to Us	p. 64
The Trust Account Scam	p. 65
Unstoppable Demographic Trends	p. 65
Empty Trust Accounts	p. 66
Frightening Numbers, Oblivious Politicians	p. 67
A $44.2 Trillion Price Tag	p. 68
Your Personal Share of the Debt Is $908,91 5!	p. 69
The United States Is Bankrupt	p. 70
Run the Printing Presses!	p. 71
Our Government Falsifies Its Economic Data	p. 71
The Social Insurance Disaster Means Explosive Gold Prices	p. 73
Cold and the Long War Against Terror	p. 75
Even If We Capture Osama bin Laden, More Terrorist Attacks on America Are Coming	p. 75
Crippling the U.S. Economy through Attacks in Other Countries	p. 76
Shortly after 9/11 Most Educated Saudis Supported Osama bin Laden	p. 79
Non-Saudi Oil Targets Are Vulnerable, Too	p. 79
The Coming Terrorist Attacks on America	p. 80
Biological Attacks on America	p. 81
Nuclear Attacks against America	p. 83
If Osama bin Laden Really Has These Weapons, Why Hasn't He Used Them?	p. 84
The Nightmare Scenario Could Occur	p. 85
Protect Yourself!	p. 86
Gold, Deflation, and the 2008-2009 Economic Crisis	p. 85
Why the 2008-2009 Crisis Is Bullish for Gold	p. 89
Why Deflation Is a Terrifying Prospect	p. 90
Desperately Trying to Reinflate the Economy	p. 91
How Much Is $1 Trillion, Anyway?	p. 92
The Resurrection of Keynesian Economics	p. 93
The Coming Backlash against the Dollar	p. 94
Gold Is a Spectacular Opportunity	p. 95
Even During the Great Depression, Gold Went Up!	p. 95
A Technical Approach to Entering the Gold Market	p. 97
Using Technical Analysis to Trade Gold	p. 99
Two Approaches to Trading	p. 99
An Introduction to Technical Analysis	p. 100
Trend Lines	p. 100
Trading Ranges and Consolidations	p. 102
Using Trend Lines to Enter and Exit the Gold Market	p. 104
Moving Averages	p. 104
Technical Analysis and Frenzy in the Gold Market	p. 107
The End of a Frenzy	p. 109
Summary	p. 110
A Free Offer to Readers	p. 111
Approaching Gold as a Technician	p. 113
The Parabolic Rise of Gold	p. 114
Is Gold Trading in a Range or Trending?	p. 119
The Importance of Time Frames	p. 119
The Vertical Horizontal Filter	p. 122
Examples of Using VHF to Trade	p. 124
Summary	p. 128
Technical Analysis and Forecasting of Gold Prices Using the BFG Outlier Research Process	p. 131
The Importance of Tracking Gold	p. 131
What Is Technical Analysis?	p. 131
The History of Technical Analysis	p. 132
The Origins of BFG Technical Analysis	p. 135
Case Study 1	p. 140
Case Study 2	p. 141
How to Invest In and Trade Gold	p. 143
Introduction to Gold Trading Vehicles	p. 145
Gold Is an Unusual Market	p. 145
Wealth Insurance	p. 146
A Spectrum of Gold Trading Vehicles	p. 147
Gold Bullion	p. 149
Avoid Gold Bars	p. 149
Avoid Private Mint Gold Coins	p. 150
Stick with the Five Most Commonly Traded Gold Bullion Coins in the World	p. 150
Important Things to Keep in Mind When Buying Any Gold Bullion Coins	p. 154
When the Gold Market Gets Red Hoi	p. 155
Investing in and Collecting United States Gold Coins	p. 157
What to Know Before You Buy a Single Rare U.S. Gold Coin	p. 159
Building a Gem Uncirculated U.S. Gold Type Set	p. 160
Coin 1: Gold $2.50 Liberty (1840-1907)	p. 160
Coin 2: $2.50 Indian (1908-1929)	p. 161
Coin 3: $5 Liberty, Motto (1866-1908)	p. 163
Coin 4: $5 Indian (1908-1929)	p. 164
Coin 5: $10 Liberty, Motto (1866-1907)	p. 165
Coin 6: $10 Indian (1907-1933) Eagle	p. 166
Coin 7: $20 Liberty (1849-1907) Double Eagle	p. 167
Coin 8: $20 Saint-Gaudens (1907-1933) Double Eagle	p. 168
Proof Coins	p. 169
Modern Commemorative $5 Gold Coins and Intelligent Gold Play	p. 171
What to Buy, and a Few Words about Grading	p. 177
Author's Note	p. 178
Ancient Gold Coins	p. 179
An Interview with Ancient Coin Expert Glenn Woods	p. 179
A Major Development in the Ancient Coin Market	p. 191
Twenty Ancient Coins That Are So Undervalued, You Should Buy Them Immediately (If You Ever See One)	p. 195
Trading Gold Funds	p. 201
Gold Mutual Funds	p. 201
The Basics of Gold Mutual Funds	p. 202
Benefits of Gold Mutual Funds	p. 203
Mutual Fund Drawbacks	p. 204
How to Select a Mutual Fund	p. 204
Mutual Fund Resources	p. 206
The Top Gold Mutual Funds	p. 206
Closed-End Gold Funds 208
Gold Exchange-Traded Funds	p. 208
Problems with the Gold ETFs	p. 210
An Important Warning about Gold ETFs	p. 212
How to Use GLD	p. 214
My Recommendations: How to Trade Gold Funds	p. 215
Trading Gold Stocks	p. 217
The Problems with Stocks	p. 217
Trading Gold Stocks	p. 218
Price/Sales Ratio	p. 219
Price/Earnings Ratio	p. 220
Profitability	p. 220
Gold Reserves and the Cost of Gold	p. 221
Earnings Growth	p. 222
Using Gold Stocks in Your Trading	p. 223
Speculating in Canadian Junior Resource Stocks	p. 225
An Interview with Eric Coffin of Hard Rock Analyst	p. 225
Evaluating Money	p. 227
Evaluating Management	p. 230
Evaluating Market Timing	p. 233
Junior Resource Momentum Plays	p. 235
What to Expect from Canadian Juniors	p. 237
Things to Beware Of	p. 239
Hedging and Speculating with Futures	p. 241
Advantages of Futures	p. 241
Disadvantages of Futures	p. 242
Hedging	p. 243
How Futures Markets Help Our Economy	p. 243
Gold Futures Contract Specifications	p. 244
Margin on Futures Accounts	p. 245
Using Futures to Hedge Your Gold Position	p. 247
Using Futures to Speculate on Gold	p. 248
Rolling Up Profits	p. 249
Hedging and Speculating with Gold Options	p. 251
Advantages of Options	p. 251
Types of Gold Options	p. 253
Speculating with Gold Calls	p. 253
Additional Tips on Buying Calls	p. 254
Hedging with Gold Puts	p. 255
Advanced Option Strategies	p. 257
Mistakes to Avoid When Trading and Investing in Gold	p. 259
About the Author	p. 263
Index	p. 265
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