WHEN THE SMART MONEY MAKES MONEY

Appetite for risk remains robust right now as a last minute deal was reached to keep Greece from imploding and as Chinese equity markets have calmed down. When investors are comfortable taking more risk, assets like stocks may rise while perceived safe haven assets like bonds and gold may fall.

The price of gold has been falling, in fact, as investors anticipate the first upcoming rate hike from the Federal Reserve and as the economy is showing some signs of improvement.

In the meantime, Greece remains a member of the euro (at least for today) and worries over China’s overheated market have abated.

Now ask yourself one simple question: Do you honestly think this is going to last?

Greece may have bought itself some time, but to the onlooker it appears as if the can has just been kicked down the road.

Chinese stocks? Well I guess it may be difficult to see a lot more volatility as Beijing has banned stock selling by large shareholders and taken other significant measures to keep its market from crashing.

At some point, these issues will come to a head. At some point, the aging U.S. equity bull market will reverse course giving way to a new and likely very painful bear market.

What will you do then?

You may find yourself wishing you had bought gold and silver at current levels…

Recent price action in gold has seen the market price now move below the $1100 per ounce level.

The $1080 area represents a near 6 year low…

While demand for physical gold has been strong, spot prices have kept falling while premiums have been rising.

What does that tell you?

It tells me that smart, long-term investors are buying as much physical gold as they can get their hands on at these levels.

Demand for physical silver is through the roof!   The U.S. Mint actually sold out of silver eagle coins in early July and may not have any more until sometime in August.

Smart long-term investors recognize the opportunity currently presenting itself in the gold and silver markets.

The opportunity to buy PHYSICAL gold and silver ON SALE…

Gold has been trending higher since 2005. Markets do not typically go straight up or straight down, and gold is no exception…

With the long-term view in mind, recent weakness in gold could simply be nothing more than a BUYING OPPORTUNITY!

In other words-you right now you have the opportunity to buy gold for over $800 LESS PER OUNCE than just a few short years ago…

Think about it this way.  In 2009 when the S&P had dropped roughly 50%, was that a good time to BUY?  You’re darn right it was.  And I don’t know about you, but the fundamentals of the current stock market tell me that right now it is OVERVALUED and EXPENSIVE.

BUYING LOW AND SELLING HIGH ARE NOT EASILY DONE.  Listen to your gut, because this is an OPPORTUNITY that if you jump all over you will be very glad you did when you look in the rearview mirror down the road.

How would you feel buying gold here and seeing it not only return to but surpassing the 2011 highs near $2000 per ounce?

You’d feel like a genius… And smile all the way to the bank…

What we are seeing now is a tremendous opportunity to buy precious metals at low prices-an opportunity that likely will close soon…

A fool doesn’t see the “forest through the trees.”

Don’t be a fool…

Gold will shine again. It could be tomorrow, next week, next month or even years down the road, but it will have its day. And when it does, you’ll be happy you bought it at $1100 per ounce rather than $2000, $5000 or even $10,000 per ounce.

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