Gold Q&A: Answers to our Subscribers' Most Pressing Questions

• Is it OK to be ultra bullish on precious metals and take huge speculative positions?

  November 16, 2012, 12:00 PM

  I appreciate your earlier email and plan on subscribing to your market letter for 1 month and then will go from there.

  Because I'm so ultra bullish on precious metal stocks for at least another month, I've decided to go whole hog on out of the money mining stocks options.

  If I'm wrong, then I just blew $5k!

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• Is it true that low interest rates don’t result in higher stock prices?

  February 10, 2012, 12:00 PM

  Here’s what I just read. Please comment. "Low interest rates are not likely to translate into higher stock prices, because this relationship is based on the assumption that people believe stocks will rise."

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• Is the economic picture deflationary?

  January 13, 2012, 12:00 PM

  Do you see the economic picture as deflationary, given the problems around the world, in particular in the EU?

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• Is there a way to avoid the precious metals tax paradox?

  January 7, 2011, 12:00 PM

  Is there any way to avoid the following situation?

  • As the government destroys the dollar's value, John buys PMs to retain his wealth.
  • As the dollar collapses, gold's price increases. John's wealth is retained.
  • The government, which orchestrated the dollar's demise, ignores that demise and views John's wealth retention as newly created wealth (a.k.a. taxable "gains" - even though no new wealth was created).
  • The government imposes heavy taxes on John's "gains".
  • The paradox - whether or not John invests in PM's, the government takes a vast portion of his wealth. The more "gains" John accumulates, the more real wealth he loses via taxes on phantom wealth.

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• Is there any difference between the Democrats and the Republicans for a precious metals investor?

  November 5, 2010, 12:00 PM

  Does it matter if it is the Republicans or the Democrats that control the House and the Senate? Will a change of the party in power change your views on the market?

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• It would be good to see your results, stop-losses and the risk you take.

  November 18, 2011, 12:00 PM

  It is a pleasure to read your newsletter but it would also be good to see your results, the stops you have and the risks you take.

  • [1] Should subscribers purchase and sell only when market alerts are sent out?
  • [2] Can you declare your own positions to subscribers?
  • [3] Can you run a real portfolio(s) starting with $100,000 every year in gold, gold stocks, silver, platinum, etc.?

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• I’m confused about your proprietary tools. Can you help me out?

  October 26, 2012, 12:00 PM

  I am a trial subscriber of SP starting yesterday. I am quite confused about the proprietary tools and information you provided.

  • [1] Does one need basic knowledge of statistics to understand what you are actually doing?
  • [2] There is a myriad of tools such as the correlation matrix and SP indicators and the Gold and Silver ranking tool. How do I put all of these tools together and form a trading method? Do I start with, for example, the Gold ranking tool and look for gold stocks to trade, and then apply the correlation matrix and SP indicators to find the right candidate? Is there a flowchart, for example? How does one begin to play the concepts and begin using the tools?
  • [3] Are the tools interrelated or do they work independently?

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