Month: July 2013

By Profit Confidential

There is a simple fact in the stock market: restaurant stocks can make good money.

Not only are restaurant stocks a sector in which you can do well as a speculator/trader, but they’re also a sector that provides a great barometer on consumer spending. Always follow both the established names in this sector and all new initial public offerings (IPOs). New concepts often have trouble catching on, but when the right concept comes along, it can pay big time.

Chipotle Mexican Grill, Inc. (CMG) reported excellent financial growth in its latest earnings results. The company said its second-quarter revenues grew 18% to $816.8 million on a comparable restaurant sales increase of 5.5%. That’s very material for such an established chain.

Net earnings increased 7.6% to $87.9 million, while earnings per share grew 10.2% to $2.82.

The company opened 44 new restaurants during the second quarter for a total count of 1,502. Management expects to open between 165 and 180 new locations this year with low- to mid-single-digit growth in total comparable restaurant sales.

Chipotle’s revenue growth was significant and represents more than operational tweaking. Consumers are spending more on dinner out. Other restaurant stocks support this view.

On the stock market, Chipotle moved significantly higher from 2010 to the first quarter of 2012. Then the company experienced a major retrenchment from $440.00 a share to $240.00, followed by a substantial rise in its share price to its current level around $400.00 a share.

The company’s stock chart is featured below:

Chart courtesy of www.StockCharts.com

With the stock market at its high, new IPOs are everywhere and many new restaurant stocks have recently been listed.

But as is usually the case, stock market valuations are extreme and representative of a speculative fervor that is overly optimistic at best. Countless new names in restaurant stocks are trading at astronomical valuations considering their sales and often lack of earnings. (See “Why This Popular Restaurant Could Be a Wise Investment.”)

That’s the way it works with IPOs. Nobody is ever really sure whether they’ve been had or if it’s the beginning of a profitable new business relationship. Wall Street doesn’t care either way; the Street cares only about its cut.

Looking at the numbers, Chipotle looks richly valued on the stock market. But earnings estimates are going up across the board—for 2013 and next year. With this earnings momentum, the company’s lofty valuation will probably remain intact.

Notably, in the company’s latest earnings report, Chipotle cited rising food costs in all areas with the exception of avocado prices.

Operating margins actually decreased slightly because of the higher food costs and there was more expenditure on marketing. But there was still a solid gain in bottom-line earnings and shareholders’ equity rose markedly.

All in all, Chipotle reported solid second-quarter earnings results. With a more reasonable valuation, this proven restaurant operator would make for a great pick.

Article by profitconfidential.com

By Profit Confidential

Wow, what the heck just happened at Microsoft Corporation (NASDAQ/MSFT)? The company reported earnings that missed the target by a whopping $0.23 per diluted share.

I should also add to that question: what explanation did CEO Steven A. Ballmer offer? Could you imagine the look on Bill Gates’ face when he found out the numbers were so dismal?

The company, which I have discussed in the past, missed the boat on the mobility movement and is now trying to catch up. Its tablets appear to be overpriced and have not been well received.

And as I wrote in a previous article, I believe the best business under Microsoft at this time is its gaming and entertainment unit, which is responsible for the “Xbox” platform. (Read “Has Microsoft Found Its Savior?”)

The problem is that the entertainment console unit is still a small part considering the size of the overall business. In fact, I think Microsoft would probably better reward investors by creating a separate company to focus on the Xbox and spin it out to investors. Microsoft said it shipped out one million “Xbox 360” consoles in its fiscal fourth quarter.

The immediate concern is still the company’s missteps. Its touchscreen “Windows 8” operating system was supposed to be the next big thing, but so far, sales have been disappointing, and the company has had to update the software to provide fixes.

The problem is clearly one of vision and execution. Microsoft missed the move to mobility and is now paying for it, as it tries to play catch-up.

As the company’s earnings report details, “Windows continued its transition in the evolving device market,” and “the consumer PC [personal computer] market remains challenged and declined again this quarter.” I mean, no kidding. Everyone seemed to have known the shift to mobile devices was coming ever since Apple Inc. (NASDAQ/AAPL) first launched its “iPad.” Microsoft seems to have been asleep on this one.

Now, Microsoft will need to look at its strategy again. The stock is not dead, but there are better growth opportunities elsewhere—they’re just surely not here.

A start should begin with the examination of Ballmer at the helm. As I said, it may be time to change the leadership and try to steer the company back around. It may be too late, but this option could be superior to watching Microsoft do nothing for another decade.

Article by profitconfidential.com

London Gold Market Report
from Adrian Ash
BullionVault
Wednesday, 24 July 08:25 EST

The PRICE OF GOLD fell $10 per ounce from a new 5-week high in London on Wednesday morning, but stood higher for the 13th session running amid what one trading desk called “a stop-loss fiesta”.

 “There [is] still a lot of short positioning to unwind,” says a note from finance and refining group MKS in Geneva, “with very little seen in terms of any pullbacks.”

 Stop-losses are orders set in advance to close a position if prices hit a certain level.

 The number of bearish bets against gold held by speculative traders in US futures contracts last week dropped 10% according to latest data from US regulator the CFTC.

 Trading volume in gold futures has fallen this month from the two-year records of April-June.

 Options on gold futures, in contrast, have seen what exchange operator the CME Group yesterday called “huge” volume in August contracts over the last week, nearly one-third higher from year-ago levels.

 All told, open interest in gold options has jumped to record levels. The August options contract expires Friday.

 “While the breakout in gold is bullish,” says the latest technical analysis from London market-maker Scotia Mocatta, “given the bearishness of the trend that has been in full force since 2012, we would prefer to see a weekly close higher.

 “However, short-term signals are encouraging.”

 Asian and European stock markets meantime edged higher, while commodities were flat.

 Silver prices meantime edged back with gold, cutting their gains for the week-to-date to 3.4%.

 Gold investment prices stood 3.0% higher in Dollar terms by Wednesday lunchtime in London.

 Projecting a 1-3 month target of $1150 per ounce, “Gold breached the upper part of the previous range at 1303 and reached the one-month channel upper limit at 1341/43,” says technical analysis from Societe Generale.

 “A consolidation remains overdue.”

 The US Dollar meantime fell to a 1-month low vs. the Euro after stronger-than-expected PMI data showed Eurozone manufacturing activity expanding last month for the first time since January 2012.

 That pulled gold investment prices for Euro buyers back down to €1013 per ounce.

 UK investors meantime saw gold near £877 per ounce, just above the level where June’s crash began in Sterling terms.

 “A hold above the 50-day moving average of $1331 an ounce…may have provided some support for bullion prices,” says London bullion market-maker HSBC’s analyst James Steel.

 “We suspect,” agrees broker INTL FCStone’s analyst Edward Meir, “that gold will likely find an element of support over the next several weeks, at least until investors start to focus on the key Federal Reserve meeting slated for September.”

 The US central bank announces summer policy next Wednesday, but bond investment analysts expect no change until September – when the majority now forecast a cut from $85 billion to $65bn in the Federal Reserve’s monthly quantitative easing purchases of Treasury and mortgage bonds using newly-created money.

 US Treasury bonds slipped overnight, nudging 10-year interest rates up to 2.56% – a 1-week high more than two-fifths above the start of 2013.

 Gold investment positions in exchange-traded trust funds fell again yesterday, taking global holdings in gold ETFs to new 3-year lows.

 Meantime in India – the world’s No.1 gold consumer – the Reserve Bank’s announcement forcing gold importers to re-export 20% of any shipments is “the most dangerous circular [for the jewelry business] we have witnessed in the last 20 years,” says Bachhraj Bamalwa, director of the All India Gems & Jewellery Trade Federation, speaking to Reuters.

 India began relaxing tight gold import restrictions in the early 1990s, making legal what was already the world’s heaviest flows of physical gold.

 “It’s going to be chaos,” agrees a Bangalore jewelry producer, pointing to the post-summer surge in Indian gold demand due when the festival and wedding season recommences.

Adrian Ash

BullionVault

Gold price chart, no delay | Buy gold online

Adrian Ash is head of research at BullionVault, the secure, low-cost gold and silver market for private investors online, where you can buy gold and silver in Zurich, Switzerland for just 0.5% commission.

(c) BullionVault 2013

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

EURUSD – The EURUSD Unable to Consolidate Above 1.3206

The EURUSD continued to rise yesterday, having increased above the resistance 1.3176 and tested the 1.3217 level – it is slightly above the highs reached on July 10 after Ben Bernanke’s speech. Despite lingering positive and the Parabolic SAR, which is still below the price chart, the pair’s dynamics is not credible, and if the euro fails to hold above 1.3176, the pair risks of decreasing at least to 1.3100-1.3070. The loss of the 30th figure will mean the downtrend resumption. In case the current highs are broken down, the bulls’ next target will be the 1.3264 and 1.3306 levels (each of them can provide a strong resistance).

GBPUSD – The GBPUSD Hits Resistance at 1.5376

Similar to the EURUSD situation, the GBPUSD pair was increasing yesterday, remaining positive. The pair broke down 1.5290 and increased to 1.5376 resistance, which successfully holds back the bulls’ onslaught so far. It is wise to note, that the RSI has entered the overbought zone that may hinder the ascending movement. However, the Parabolic SAR is below the price chart, and the 50-day MA has crossed the 100-day MA upwards, indicating the speculators’ positive sentiment towards the GBPUSD. Thus, it is wise not to rule out the breakdown of the current high with the following pair’s increase to 1.5485.

USDCHF – The USDCHF Pulls Back from Support Near Figure 93

The USDCHF is gradually decreasing, having found the support at 0.9371, which was later successfully punched. As a result, the dollar dropped to 0.9321 (the high of the previous trading day) with the following pair’s pullback to 0.9366, where the pair is trading at the moment. So far, the pair manages to stay above the support at the 93rd figure that leaves hope for the bulls to resume the increase. The loss of the support would deprive them of that hope and make the pair drop to 0.9220. In case of the pair’s increase and consolidation above 0.9400, its outlook would be improved.

USDJPY – The USDJPY at Risk of Decreasing Below

Despite the positive closure of the previous week, the dollar managed to continue increasing against the Japanese yen and was under pressure during the whole day yesterday. First, its rate dropped to 99.61. After a slight pullback, the decrease was resumed and the dollar approached the support near the 99th figure. The pair became in demand at 99.14 that allowed the dollar pull back to 99.64. The pair’s inability to increase and consolidate above 100.70 with a subsequent decrease near the 99th figure has increased risks of the renewed downward correction. However, the bears will have to pass not only 99.00, but also the support at 98.20. The loss of 98.20 would mean the development of a medium-term downtrend. The increase above 100.70 would resume the pair’s increase.

provided by IAFT

By Equity-Research.com

Many people are interested in financial trading and in recent years the rise of internet technology has allowed for unprecedented access to the financial markets. When considering trading many prospective traders are unsure what instrument they should trade. This is perfectly understandable considering the range of instruments available to trade. Forex and Stock trading are particularly popular with retail traders. In this article we are going to outline the important differences between Forex and Stock trading. Whether you ultimately opt to trade Forex or Stocks will depend largely on your risk appetite and the type of trading you intend to engage in. Of course both Forex and Stock trading involve considerable risk and those interested in trading should seriously consider whether Stock and Forex trading is suitable for their needs.

The Foreign Exchange and Stock Market Explained

Forex

As some of you may already be aware the Foreign exchange market is the world’s largest financial market, with an estimated daily volume total of $5 trillion US dollars. About 30% of this daily volume occurs on the Spot forex markets, with spot Forex being the most popular form of Forex trading for retail investors. The size of global Foreign exchange market is huge and dwarfs even the world’s biggest stock exchanges. For instance the New York Stock Exchange has a daily volume of around $22 billion dollars. This is partly why the market is so popular with retail traders, who wish to take advantage of high liquidity, 24/5 trading and significant amounts of leverage.

Stocks

Stocks are generally traded on major exchanges and you will find a number of household names being traded on the world’s major stock exchanges. Many laymen are much more familiar with Stock trading than Forex trading, due to the fact that Forex is generally considered an exotic instrument. Everyone who has a pension will probably hold Stocks, if only in an indirect way. While the majority of Stock traders focus on large blue chip companies, it is also possible to trade smaller companies. The reason that many investors focus on blue chip companies, is due to the fact that these well established companies may be able to operate profitability even during tough economic times. Blue chip stocks tend to be less volatile than other more exotic financial instruments and are often traded with the long term goal of growing a
substantial investment portfolio.

Trading Hours

As the Foreign exchange market is an interbank over-the-counter market, during the week the marketplace trades 24 hours a day. This means that the Foreign exchange market opens on Sunday night GMT and doesn’t close until Friday evening GMT. This makes the market very popular with part-time traders, who are able to trade around their work commitments.

Stocks are traded on exchanges which have set opening times. For instance Stocks listed on the London Stock exchange can only be traded 8am to 4:30pm GMT. This can make it difficult for part time traders to access the markets when they need too. It is possible to trade some Stock markets out-of-hours, but such trading generally carries greater risk due to higher spreads and less liquidity.

Leverage

Leverage allows a trader to take on bigger positions, giving traders a chance to maximize their profits. Leverage however is a double edged sword with leverage also increasing your losses should the market move against you. In the United States, leverage on Stocks is limited to 2:1 while Forex traders are able to take advantage of 10:1 leverage. In Europe traders are able to trade stocks with significantly more leverage behind them, but still Foreign exchange brokerages tend to offer vastly more leverage. While this great leverage increases a traders risk it at the same time allows a trader the chance to make larger profits. For this reason many less risk adverse traders are attracted to Forex trading.

Volatility

Volatility is a measure of short-term price changes. Highly volatile instruments will experience significant price fluctuations, while less volatile instruments will be more stable in terms of price. Foreign exchange pairings tend to be more volatile than Stocks, though this not always the case particular when it comes to smaller cap or penny stocks. The combination of significant leverage and high daily volatility allows traders to make very big returns in a short space of time. Of course volatility increases risk while giving the trader ample short term trading opportunities. Stocks tend to be less volatile suiting traders who take a hold and buy strategy.

Capital Requirements

The significant amounts of leverage offered by many Forex brokerages means that traders can often begin trading the financial markets with lower capital requirements. In Europe it is possible to open a real money trading account with a regulated brokerage for as little as $25. While this is probably not advisable, it is certainly true that Forex trading tends to require less capital. To trade Stocks successfully, a trader is likely to need significant capital backing this is partly due to the fixed commissions charged by Stock brokers which eat into the profits of smaller traders.  This is why in Europe a large number of retail traders opt to trade stocks through CFD’s, allowing them to take on significant leverage. Unfortunately US traders are unable to trade CFD’s due to US regulation.

Concluding Thoughts

Foreign exchange trading is generally considered more risky than Stock trading. Forex trading is often embraced by short term traders who want to take advantage of the significant amounts of leverage on offer. While Stock trading lends itself to investors who are more risk adverse and would prefer to adopt a buy and hold approach. Readers are recommended to do further research into Stock and Forex trading in order to decide whether either would be suitable for their needs.

Article by equity-research.com

By HY Markets Forex Blog

Stocks in the Asian market closed negative on Wednesday, as the region benchmark index withdrew from its two-month high, after it was revealed that the Chinese manufacturing sector was contracting faster-than-expected.

The Japanese benchmark Nikkei 225 fell 0.32% to 14,731.28, while Hong Kong’s Hang Seng closed 0.07% lower to 21,896.42.

Tokyo’s broader Topix gauge edged down 0.20% to 1,219.92 , while the China’s mainland Shanghai composite dropped 0.73%  to 2,029.00.

However, the South Korean Kospi closed flat, with a slight gain of 0.42% to 1,912.08, while the Australian S&P/ASX 200 rose slightly by 0.35% to 5,034.50.

Analysts are predicting the Chinese manufacturing sector to shrink even more after reports revealed the struggling sector weakened further in July, contracting at a faster-than-expected a pace.

The preliminary reading for the month of July stood at 47.7, revealing the weak economic slowdown. Reading below 50, indicates contradiction.

The preliminary reading released by HSBC Holdings Plc and Markit Economics was lower than expected and if it’s confirmed in the ports to be released on August 1^st, it would be the lowest in 11 months.

“The recent survey suggests a continuous slowdown in manufacturing sectors, thanks to weaker new orders and faster destocking. This adds more pressure on the labor market,” Chief economist of China economic research at HSBC Hongbin Qu wrote in a note following the readings released.

“As Beijing has recently stressed to secure the minimum level of growth required to ensure stable employment, the flash PMI reinforces the need to introduce additional fine-tuning measures to stabilize growth,” Qu wrote.

The post Stocks in Asia declines after China Industry slowdown appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By HY Markets Forex Blog

In Europe, shares were seen opening in green on Wednesday, while investors remain focused on the flash manufacturing and services survey for the month of July from Germany, France and the rest of the euro zone.

The pan-European Euro Stoxx 50 opened the market advancing to 0.27% to 2,730.80, while the German DAX rose 0.20% to 8,331.71. The French CAC 40 edged up 0.34% to 3,939.30, as the UK FTSE 100 was up 0.33% to 6,619.50.

The flash manufacturing PMI for France edged up to 49.8 in July, exceeding estimates of 48.8, while the services sector rose to 48.3 from previous record of 47.2 in the previous month, according to reports from the Markit Economics.

The rest of the euro zone is expected to report preliminary readings of manufacturing and services Purchasing Managers’ Indices (PMI) for July.

Germany, the euro zone’s current strongest economy, preliminary manufacturing and service PMIs is expected to show a growth for the month of July. Germany’s flash manufacturing PMI is expected to rise to 49.2 points in July from previous record of 48.6 in June , while the flash services PMI is projected to edge up to 50.7 points from previous record of 50.4 in June .

The Preliminary manufacturing report for the euro zone as a whole is expected to go up 49.1 for the month of July, while the service PMI data for euro zone is expected to show an improvement, with a forecast of 48.7 for July, up from previous month record of 48.3.

According to reports from the National Statistics Institute for Spain, the country producer prices picked up slightly by 1.3% in the month of June an annual basis , following the fall of the previous low record of 0.6% in May .

In Italy, the retail sales were seen trading flat in the month of May on a monthly basis, compared to previous record of 0.1% in April.

The post Europe shares open higher ahead of PMI reports appeared first on | HY Markets Official blog.

Article provided by HY Markets Forex Blog

By www.CentralBankNews.info    Sri Lanka’s central bank maintained its benchmark repurchase rate at 7.0 percent, saying inflation is expected to remain at single digit levels for the remainder of the year, apart from minimal seasonal variations, due to improved inflation expectations, supply side improvements and an absence of demand driven pressures.
    The Central Bank of Sri Lanka, which cut rates in May and December, also said the recent 200 basis point cut in the Statutory Reserve Ratio (SRR) had contributed to the monetary policy relaxation process and provided financial markets with further stimulus to support economic growth, leading to a downward momentum in Treasury yields and lower short term and deposit rates at commercial banks.
    Sri Lanka’s trade deficit has also narrowed but the central bank added that “weaker than expected economic performance in advanced economies may yet prove to be a dampener in revitalising external demand and would need to be watched carefully in the months ahead.”
    Like other emerging markets, Sri Lanka’s rupee weakened in May, though less than many other currencies. It was quoted at 131.7 to the U.S. dollar today, down 3 percent this year. The central bank made no reference to foreign exchange in its statement.

    Credit to the Sri Lanka’s private sector has also been expanding following the central bank’s easing, with credit up by 18.3 billion rupees in May from 7.6 billion in the previous month while credit to the government decelerated, as expected, helping release funds from the banking sector to provide additional stimulus to the private sector.
    The central bank’s decision was widely expected following an interview by the bank’s governor last week in which he said that monetary policy was likely on hold until September or October when the bank would “be a little more inclined to relax further” if inflation continues to fall.
    Last month the central bank also said it expected inflation to remain in single digits due to supply side improvements and the absence of demand driven pressures. This month it added the reference to inflation expectations.
    In June Sri Lanka’s headline inflation rate eased to 6.8 percent from 7.3 percent and core inflation fell to 4.3 percent, the lowest since its inception.
    The central bank is aiming for inflation to ease to 5.0-5.5 percent by the end of the year and average 7 percent for the year.
    Sri Lanka’s Gross Domestic Product grew by an annual 6.0 percent in the first quarter, down from 6.3 percent in the previous quarter and the central bank is targeting growth of 7.5 percent this year, up from 6.4 percent in 2012.
   
    www.CentralBankNews.info

After touching 0.9305 resistance, AUDUSD pulls back from 0.9317, suggesting that the pair remains in consolidation of the downtrend from 1.0582 (Apr 11 high). Another fall to test 0.8998 previous low support is still possible, and a breakdown below this level could signal resumption of the downtrend. On the upside, a clear break and hold of 0.9305 resistance will indicate that the downtrend from 1.0582 had completed at 0.8998 already, then the following upward movement could bring price to 1.0000 zone.

Provided by ForexCycle.com

By MoneyMorning.com.au

Gold has made it to the business news pages again.

Only this time it’s good news.

Overnight the gold price climbed above USD$1,347 per ounce…a gain of more than 10% in a matter of days.

That’s still a long way from the USD$1,900 peak in 2011. But it’s better than the sub-USD$1,200 level it slumped to last month.

This quick move shows why we tell you to stop thinking about it so much and just buy it. But is it fair to say that after a 10% move? Surely it’s much better to wait for it to fall again and then buy gold…

This is one of the biggest dilemmas for investors.

Do you go with the trend or do you assume the short-term price rise is just that – short term, and that the price will soon come back down to a fair level?

We’re quite certain that figuring this out has cost investors more money in missed investment opportunities and actual losses than anything else.

So, what do you do?

Are You an Investor or a Trader?

This is really important. If you can get this right (or even half right) you’ll save yourself a lot of stress as you build your investment portfolio.

The first thing to work out is whether you’re an investor or a share trader. We say this because sometimes it’s easy to forget. A fast moving market can catch out even the most disciplined of Warren Buffett wannabe investors, and make them do things they shouldn’t.

If you’re not sure, the best way to think of it is like this. If you’re a trader you probably don’t much care what shares you buy and sell. The inner workings of a company and what it does don’t interest you.

You look at a chart, work out the odds of a stock price rising or falling and then place the trade accordingly. Regardless of whether it’s a good or a bad trade, odds are you’re out of the position in a week.

On the other hand, investors usually do care which shares they buy and sell. Investors tend to look into the background of a company, study the financials, gauge the market’s likely reaction to good or bad news, and then buy the shares.

Odds are the investor will still own the stock three months from now, and most probably in six or 12 months’ time. The really committed investor will hold the stock for many years.

And yet, from time to time, it’s as though some investors and share traders switch bodies. An investor who bought a stock for the long-term (maybe it pays a dividend) is spooked by a 5% or 10% fall just after they bought it and so they sell.

Conversely, sometimes a quick move against them will equally spook a trader. But rather than doing what they normally do – sell – they decide to hang on to the stock because it’s ‘now a long-term investment’.

This is why it’s important to set boundaries for an investment or trade at the beginning. And that’s another important point; you don’t have to be one or the other. You can set aside part of your portfolio for long-term investments, and part of it for shorter-term punts or trades.

You just have to remember the reason for buying each stock in the first place.

Beware of ‘Emotional Analysis’ When Investing

If you bought a stock for fundamental reasons, you should keep hold of it for fundamental reasons – and not sell just because of a short-term price move.

If you’re a fundamental investor and you sell an investment just after you’ve bought it that tells us you probably didn’t really buy it for fundamental reasons.

Most likely you quickly looked at the chart, checked out the dividend yield and PE ratio and thought, ‘That looks cheap, I’ll buy that.’

Come on, admit it, we’re sure you’ve done that at least once in your investing life. We know we have. We call it ‘emotional analysis’, and it rarely works out well.

In fact, when you invest that way you’ve got the worst of both worlds. It’s slap-dash fundamental analysis. And it’s slapdash technical analysis. It’s no surprise no-one makes a living or a fortune from stocks that way.

So, in short, if you want to make anything out of the stock market, you can’t do it in half measures. You’ve got to put the time in regardless of whether you prefer fundamental or technical analysis.

But what about the asset we mentioned at the top of this email – gold?

Right. Everything we’ve said up to this point, in the case of gold investing (and only gold investing), throw it away.

Gold is a completely different story. It’s an asset you should buy at almost any time…unless you see exceptionally better value elsewhere. We wrote last week that we saw the current market as a 50/50 choice between stocks and gold.

That hasn’t changed. We see gold as the ultimate long-term investment and long-term insurance policy. That’s why gold is the only investment where technical or fundamental analysis doesn’t apply.

Does a 10% Move Really Matter When You Invest in Gold?

We don’t care if the price rises or falls in the short-term because we didn’t buy it for the short-term. We bought gold before it hit USD$1,900 and we’ve bought gold after it hit USD$1,900.

We’re yet to sell even a single fraction of an ounce…and it’ll be a long time (if ever) before selling even crosses our mind.

So if you’re waiting for gold to fall before you buy it, ask for what reason you’re buying gold. If it’s to make a 10% or 20% gain, forget it. There are much better ways to make those returns – the stock market.

But if you’re buying gold for the long-term (30, 40 or 50 years), then will a $100 difference really make a difference over that timeframe? If you think $100 will make a difference, then you aren’t a serious long-term gold buyer.

Remember, we only apply this attitude to gold. It’s different with stocks because you’re dealing with businesses and revenues and profits that can change from month to month and year to year.

But gold is just gold. It was gold five years ago and it’s gold today. If you’re serious about buying gold for the long-term then forget about the short-term price moves and just buy an ounce or two at regular intervals.

As we’ve long said, when it comes to gold investing, don’t make it any more complicated than necessary.

Cheers,
Kris+

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