Tuesday, January 29

Sell Signals on Gold

The hot mover in the markets lately has been the price of gold. When the global markets attempted a meltdown last week, gold soared. This is in addition to the boost gold had already received thanks to a declining US Dollar. But I have been wondering for a while where the limit is for gold. If you listen to the gold 'bulls' then you have heard that 'gold can only go up!' Gee, where have we heard that already? There are many people still in disbelief over how the bottom dropped out of the US housing market. Of course gold is somehow different, or is it? For starters, it is a hell of a lot more liquid a commodity than a house is. So oddly enough, one sign that gold might be reaching a peak is increased selling in India, which is one of the world's biggest markets for gold.
India's love affair with gold is waning as savvy housewives in the world's largest importer of the precious metal opt to capitalise on rocketing prices by selling off their spare jewellery.

With prices of the commodity, traditionally viewed as a safe haven in uncertain times, hovering close to record highs, Suresh Hundia, head of the Bombay Bullion Association, said that Indian consumers are deferring all but the most essential gold purchases. "People, households, are selling spare gold. There is zero demand at these prices in India," he said. - Times Online
It is not just happening in India either:
There has been very little buying interest from physical buyers from Japan, London, Hong Kong and most importantly India, said a London-based bullion dealer at CommerzBank AG.

Most of them are on the sidelines awaiting gold to fall to the 850 usd levels, the dealer added. - Forbes
Since people are only interested in Selling all of a sudden in India, they are willing to accept discounted prices to cash out due to a limited supply of buyers.
Mr Hundia said that domestic sellers of scrap gold in India were cashing in at prices about 3 per cent below those quoted in the trading pits of London and New York, which remained firm today on the back of power outages in South African mines. - Times Online
At a recent price today of $930 an ounce, that is a discount of almost $28 an ounce. Ouch!

Now remember the saying that when the shoe-shine boy starts giving you tips, then it is time to leave the market? Well the shoeshine boy is saying "Buy!" Who is the shoe-shine boy in this case; None other than I am Facing Foreclosure housing fraudster Casey Serin. (Don't know who he is? You can find some background info on his disastrous escapade in the housing market here. At one time he was labeled the 'world's most hated blogger') Today Casey sent out an email with the subject "Millionaire By Christmas":
I've had some great guidance and I feel bad holding back what I know. I'm going to share with you but you must act quickly!

The FED is cutting the rates again tomorrow. Last Tuesday's history rate cut barely saved the markets from a major crash. Most people don't realize how bad things are. The dollar has been in a near free-fall for a while. All this printing of money out of thin air is only going to make it worse.

If you're not buying gold and silver and taking physical possession of it, you are doing your family a disservice. You don't want to be poor in a likely depression or hyper-inflation. Worse, if the dollar completely collapses, having some gold and silver coins on-hand for barter will be a life-saver.

Mining stocks is an even better way.

Specifically PENNY mining stocks that are set to explode. You can multiply your capital 10 or even a 100 times and will buy you A LOT MORE gold and silver to hide in your back yard.

But, unless you know what you're doing this is very risky! Remember how I rushed into real estate investing? Well, I've been blessed with some great advisors this time around. The advice has been dead-on for almost a year and I feel comfortable now to share with you.

The company is GoldSpring. The stock symbol is GSPG.

Since last April I'm up over 480%. I bought at 1/3 of a penny. Today it almost hit 2 cents. In the next day or two they're going to release a MAJOR report that shows you how much gold they have in the ground. I bought some more shares today ahead of the news.

Time is VERY short to make a killing. - Extract from email sent by Casey Serin - Highlighting by Fred
This guy is an investing disaster area. I find it rich that he's hawking a penny stock. This guy was busy praising the housing market by lying his way into multiple future foreclosures at the peak of the housing market. Too bad he didn't buy gold at that time, which makes me think that the fat lady is starting to sing when it come to gold. Casey has arrived to the market. Then again, maybe it is not gold, but the specific stock he is suggesting.

So what about the stock. I have to say that it falls outside my self-imposed investing rules in that it is a penny stock, it is not currently profitable and does not pay a dividend. But each to his own devices. Click on the image to take a look at their latest investor update and judge for yourself.

Maybe this is Casey's ride to becoming a millionaire. I can't say, only time will tell. One thing I am pretty certain of is that if this does become a real winner for him, I suspect that the success will be short-lived as he will just take the money and burn it in some other loser.

Keep in mind that their 2005 investor report notes "Projected to be cash flow positive during Q4 2005" Gold was trading less than half the current price back then.

At any rate, beware because it seems that the fools have arrived to the gold market. That is a bad sign, unless your looking for the price of gold to drop. I think gold is currently suffering from a bubble so beware of it pops!

Their website can be found here.

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