In my last article on Commodity Code Review, I talked briefly about how many financial experts like Robert Kiyosaki are championing gold and other precious metals as the best investment in these troubled times. In fact, many smart investors are already secretly moving all their cash and paper assets into gold!
It’s no surprise that this has got the banks running scared. After all, their profits depend on you leaving your deposits in your bank account so that they can turn around and lend that money to their customers at a huge profit.
Never mind that your money is actually depreciating big time sitting in your low interest bearing account because of INFLATION. They don’t care!
The Secret Bull Market In Gold
Think about it… when’s the last time your bank called you up and told you about the opportunity in gold? I’ll bet you didn’t learn that gold has been in a raging bull market in the past 5 years from your local bank.
The fact is, the price of gold has risen close to 200% in that time while your money has been sitting around earning a negative return after inflation!
With such a tremendous increase in such a short period of time, surely the bull run is about to end? Well, right now we’re definitely seeing a pullback from the heady heights of late 2011 but in a bull market like gold there’s one thing for sure…
It’s only a matter of time before gold prices skyrocket back up again!
So what’s the reason for this massive increase in gold prices over the last half a decade?
Fundamental Reason #1: China
There’s a tremendous economic boom going on in China right now, with massive developments going on and millionaires being made by the second. In the midst of all of this wealth, the demand for gold in China has exploded to a 10 year high.
Now, you’ve got to understand one thing about Chinese people and it’s that they treasure gold as a status symbol for wealth more than anything. So it’s no surprise that China in particular is buying up tons of gold to keep up with the demand of goldsmiths all over the country.
Fundamental Reason #2: Inflation
If you think that losing a huge chunk of your retirement fund and any investments you held in the recent financial crisis was bad, there’s an even bigger financial threat looming… the loss of buying power. Right now, if you’re holding on to cash thinking that it’s the safest investment, think again.
Inflation causes your money, especially the money that you have lying around in your bank deposits and bonds, to depreciate by the day. That’s why smart investors are converting their cash into inflation-proof assets like gold, silver and other precious metals.
Taking Advantage Of The Golden Opportunity
So what can you do to beat inflation and take advantage of this huge opportunity in gold right now? Well, you could start buying up physical gold from your local goldsmith, pawn stores or even the banks.
The thing is though, they charge a hefty mark-up on these physical gold stocks which will make it almost impossible for you to make a good profit unless the gold prices double overnight.
The smarter thing to do would be to take advantage of the gold spot market, which is where the banks and goldsmiths go to get gold at wholesale prices. Just by signing up for an online gold broking account, you can literally buy and sell gold for the real price it is trading at today.
Trading gold online eliminates expensive transaction costs, allows you to buy gold at a massive discount compared to buying from banks and goldsmiths, and makes it easy for you to buy and sell gold 24 hours a day. In addition, you can utilize a very powerful secret weapon called “leverage” to massively multiply your returns when you’re trading gold online.
Of course, there’s risk involved when you’re chasing higher returns, especially if you are new to the whole trading game. That’s where The Commodity Code comes in.
More on that in my next article: “The Wealth Secrets Of The Rich”