Profit From Gold... Up, Down, Or Sideways!
The Dynamic Wealth Report
December 1, 2009
Have you seen the price of Gold recently? It’s hitting new highs once
again! If you’re an avid follower of the stock market, you know how Gold
prices can influence many things… like the price of gold mining stocks.
But I’m not here to talk about the gold miners.
I have another way to profit from jumping Gold prices… just give me a
moment to explain.
-------------Sponsor-------------
Where Can You Turn $300 Into $1.3 Million Right Now?
Our own small-company specialist, Robert Morris, has found a
way to 'sniff out' tiny penny stocks on the verge of a major breakout. And
the timing for this has never been better.
You see, the system takes advantage of an obscure SEC regulation that
sends penny stock prices through the roof.
We've seen some stocks gain 852%... 5,450%... even 17,496% in no time
flat.
Click here
for the details...
-----------------------------------
Take a look at this chart on Gold. Gold hit a low of $805 in January
2009. As of this week, it’s up more than 33%. What a run!

What’s behind the run-up?
Some traders are pointing to supply. Others point to demand.
I point
right to inflation.
Global economic activity is starting to pick up. Countries all over the
world, including the US, are reporting modest increases in GDP. As you
know, GDP is the measurement of all economic activity in a specific
region. China’s GDP growth for 2009 will be over 8%.
Despite being on the road to recovery, we’re still in a fragile state.
A significant portion of GDP growth can be tied to massive government
stimulus and spending. Now it’s not fair to point the finger only at the
US government and Federal Reserve… though they do deserve a big share of
the blame.
Governments around the world have freed up cheap money and let their
printing presses run.
What comes with cheap and easy money is inflation. It’s a cycle that can
spin out of control.
It’s what I’m afraid of, and it’s what’s driving the price of Gold ever
higher.
But Gold’s not the only commodity out there.
Oil, Gasoline, Platinum, Copper, Lead…. There are hundreds of
commodities out there. All of these are hard assets and they’re all
moving slowly higher.
Everyone knows when inflation strikes you want to
be investing in hard assets.
Now, investing in individual commodities can be risky.
You need to study the markets. You need to pay attention to supply and
demand issues. You really need to know what you’re doing when trading
commodities… like Gold.
Just look at Wheat prices over the last year. Prices moved higher
because planting was delayed… then prices dropped like a rock because
the government estimated record harvests… then prices jumped again as
harvest time weather was horrible…
While you could have profited from these moves, you could have just as
easily lost money too.
I’ve found an easier and simpler way.
Instead of investing in commodities, invest in the commodity market.
What do I mean by that?
Take a look at the
CME Group (CME). They own the Chicago Mercantile
Exchange, the Chicago Board of Options Exchange (CBOE), and the New York
Mercantile Exchange (NYMEX). Every time someone makes a trade on one of
the exchanges, CME captures a tiny little transaction fee.
The fee isn’t much. But when you handle millions and millions of
transactions, the numbers get really big.
The company raked in
$650 million in revenue in the third quarter of
2009.
Net income was $202 million for the quarter… that’s $3.04 a share!
We all know that trading activity in Gold and other commodities is going
to pick up. Whether it is improved economic activity or inflation,
commodities are going to move. As trading activity accelerates, one
company’s poised to profit… and that’s the CME Group.
It’s a sneaky way to profit.
But remember, CME makes money regardless of where commodity prices move. Up, down, or sideways,
CME is always a winner. If you like the idea of
profiting from increased commodity trading, buy some for your own
trading account.
More than 130 Chinese companies have raised money through IPOs this
year… yet only 10 listed on major US exchanges. Might this be an early
sign of the falling US economic dominance? Or is it simply a sign it’s
easier to raise money elsewhere?
Print
Page
Bookmark Us