The Little Book of Bull Moves in Bear Markets: How to Keep Your Portfolio Up When the Market is Down (Little Books. Big Profits) by Unknown

Author:Unknown
Language: eng
Format: epub

GoldMoney may be the best monetary system

ever, and if governments don’t adopt it, I predict

it will be widely used as a commercial service.

GoldMoney.com was founded by James Turk, a highly

regarded figure in gold circles whose investors and share-

holders include two publicly traded gold mining compa-

nies, DRDGold Limited (South Africa) and IAMGOLD

Corporation (Canada). GoldMoney

’ s main office, web

site, and database servers occupy a state - of - the - art facility on Jersey, one of the British Channel Islands in the English

Channel. It operates somewhat like online banking, but

your account is denominated in goldgrams and mils rather

than dollars and cents. Each GoldMoney goldgram you

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[ 1 2 4 ] T H E L I T T L E B O O K O F B U L L M OV E S I N B E A R M A R K E TS

buy represents ownership of your own pure gold, which is

in allocated storage in a specialized bullion vault near

London and is insured by Lloyd ’ s of London.

GoldMoney conveniently and speedily handles pay-

ments in gold between members in exchange for goods

and services. Transactions are processed instantly. Your

gold stays in the vault, but fractional ownership of it

changes as payments are made. It may be the best mone-

tary system ever, and if governments don ’ t adopt it, I pre-

dict it will be widely used as a commercial service.

GoldMoney also operates as a retailer of bullion aim-

ing to making gold buying economical and practical for

average individuals. Customers can buy any fraction of a

gold bar at a couple of percentage points above the spot

price, far less than the markup you ’ d pay a dealer. Check

it out at www.goldmoney.com .

Commodity Futures

Commodity futures are discussed in Chapter 5 and there is

little I would add in the particular case of gold and silver.

You can bet the ranch by taking advantage of the liberal

margin rules of the commodity exchanges and make or

lose a fortune, or you can fully collateralize your account,

buy a contract, and roll it over without taking any more

risk than you would owning physical gold or silver outright.

Or you can do something in between, putting up as much

collateral and taking as much risk as you want.

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T H E R I N G I N T H E B U L L ’ S N O S E [ 1 2 5 ]

As I stressed in Chapter 5 , though, there is counter-

party risk whenever you get into derivatives, whether

you ’ re buying a futures contract or trying to protect your-

self against trading loss by using put options. If the

exchange goes bankrupt — and these days nothing would

surprise me — you ’ re out of luck.

Mining Stocks

Mining stocks offer the prospect of income and capital

gains magnified by leverage, and are potentially the most

profitable way to play gold and silver.

Gold and silver prices rise and fall with inflation and so

do the stocks of mining companies, but not in lockstep. The

price of the metal has to rise faster than the cost

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