Profit-Patterns in the Gold Market

Most people think gold stocks are confusing… risky… or “unpredictable.” Until recently, I felt the same way. But then, my research team came across the work of Dr. Peter Tufano.

Dr. Tufano is an award-winning Professor of Financial Management at Harvard. Over the years, he’s pioneered low-income savings plans for the poor – and written countless articles for The Journal of Finance, American Economic Review, among others. Meanwhile, he also made a stunning gold discovery…

Incredible but true: he found that mining companies – including the tiniest, most affordable ones that routinely erupt with returns of 198%… to… 2,360% are easy to track and predict using an experimental tool called “explicit valuation models.”

Let me be clear. Very few people understand this concept. Even fewer know the right moment to jump in. (It’s a mystery that took us months to untangle.) But right now, there’s a window of time with potential for giant profits.

The reason is simple: according to our three-decade study (inspired by Dr. Tufano), the most predictable returns occur AFTER gold prices rise to a precise level.

First… let’s get one thing straight:
This highly unusual indicator is NOT the “holy grail.”
* It doesn’t work on tech stocks.
* It doesn’t work on bank stocks.
* It doesn’t work on energy stocks.
* It doesn’t work on any other stock, bond, foreign currency or commodity.

It works on one thing and one thing only. Gold stocks. And it works like—I can’t help but say it because that’s exactly how it is—like a Magic Charm. That’s why Forbes calls it “A screaming buy signal for gold shares.”

So how was it discovered?

A few years back… Dr. Tufano slipped into a private meeting with the managers of 48 mining firms. He wasn’t there to sample the hors d’oeuvres… but to extract key information. And the insider-knowledge he picked up that night laid the foundation for years of profitable research.

One of his key findings deserves your full attention. In his words…

“I was told that a 1 percent increase in gold price would produce a 3 to 10 percent increase in their mines’ stock price values.”

Think about it. That means…
When gold moves up 5%, mining stocks gain 15-50%.
When gold moves up 10%, mining stocks gain 30-100%.
When gold moves up 20%, mining stocks gain 60-200%.

How is This Possible?

Let’s do the math…
If gold’s trading at $800… and you can mine it for $600, that’s a $200 profit.

But watch what happens as it moves higher…
When the price of gold jumps to $1,000 an ounce… your profit margin DOUBLES from $200 to $400.

That’s why mining companies are so attractive.

When gold rises 25%… their profits soar 100% or more… and that can send their shares 3x… 6x… even 10x higher!

The Problem Is: It’s hard to know when to jump into gold stocks.

To the naked eye – they move in an on-again, off-again pattern in a fashion that looks completely random.

The million dollar question though is, which one to buy?

Dr. Tufano’s research led us to one of the oldest stock markets in the country, The Philadelphia Exchange (PHX).
Because, each day, the PHX (quietly) publishes a unique “gold and silver index.”

When companies like Goldcorp and AngloGold do well, the index goes up. When they suffer, it falls. Some people use it as a “health barometer” for the gold mining industry.gold