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The Gold Bull is Coming


Get Ready for our New Gold Play on Tuesday



Great news for our members who have been requesting a hot commodity play for the summer. We heard your requests and we listened so on Tuesday we will have an all new Gold Play for our members.

For those members not familiar with the commodities market in general please read below for a synopsis on how the price of gold is determined.

For those members not familiar with the commodities market in general please read below for a synopsis on how the price of gold is determined.

Why Invest in Gold?

Safety- Gold has a history of being considered one of the safest investments and is consider by most experts as a must have in your portfolio. Gold doesn’t rely on a borrower’s promise to pay unlike bonds. This offers protection from default risk.

Inflation- Due to the rising prices of goods in services the purchasing power of many currencies has declined. However over the long term gold has kept its purchasing power. Its value has remained stable in terms of the real goods and services it can acquire. Gold is most often used as a hedge against the U.S. dollar. While the U.S. Dollar continues to decrease the price of gold will rise.

How is the Price of Gold Determined?

Remember your Economic‘s 101 class?  Supply and Demand it is that simple.

According to the World Gold Council Demand for gold remains very robust. The demand in the first quarter totaled 981.3 tons and increase of 11% year-on-year. This increase can be explained due to the widespread increase in investments and demand for bars and coins which was further improved by the increase in the demand for jewelry.

What Drives the Demand of Gold

  • Jewelry – This is probably the most obvious. Think of earrings, bracelets, necklaces, and everything else. This accounts for about two-thirds of gold demand.
  • Investments – Since 2003, investment has accounted for the strongest source of growth in demand.
  • Industrial uses – Electronics such as cell phones, calculators and, GPS units all use a small amount of gold because of its resistance to corrosion. 11% of the demand of Gold derives from electronics.

Sources of Supply

  •  Mine production – Approximately 2,485 tons (or 2,485,000 kilograms) of gold are mined per year.
  •  Recycled gold - Gold is of such value that it is capable, if needed, of being extracted, melted down, refined, and reused.
  •  Central banks – They hold about one-fifth of the stocks of gold as reserve assets. Governments hold about 10% of their reserves as gold.
  •  Gold production – This consists of finding the ore, creating access to it, removing it through mining, and processing and refining it.

The Supply of Gold has may have reached its Peak while the Demand is still increasing.

How can you as a savvy microcap investor take advantage of this perfect storm of profit potential?

There are vast number of junior and major gold mining companies that will benefit from the rise in the price of gold. Many of these companies are currently trading at close to or under a dollar per share. The key is to identify these hidden treasures and maximize your ROI. PennyStockLocks is currently researching and will have a new Gold Play for its members for Tuesday.

Make sure you check your inbox after the close on Monday to get in early on this Gold Play.

Enjoy the rest of your weekend.



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