Profiting From Gold's Impending Collapse
1. Edition May 2012
2012. 258 Pages, Hardcover
- Practical Approach Book -
ISBN 978-1-118-23935-3 - John Wiley & Sons
E-Books are also available on all known E-Book shops.
How do TV shows, vending machines, Chinese taxi companies, and a former UK prime minister point to a gold bubble that is about to burst?Many investors consider gold a "safe haven" that will shelter them from recessions, falling markets, and the depreciating value of currency. Many fail to realize, however, that investing in gold at these levels is extremely risky. "We Buy Gold" stores line busy streets, gold miners are no longer protecting themselves from a potential drop in prices, and gold is even being sold in vending machines. All this points to one thing: a gold bubble has formed and will collapse very soon, hurting investors, funds, and banks. In Gold Bubble: Profiting From Gold's Impending Collapse, Yoni Jacobs looks at how you can protect yourself.Presenting an in-depth analysis of gold dating back over a hundred years, the book explores the structural factors that have allowed gold to form a bubble, why an investor psychology of fear and greed is leading to extremely speculative behavior, why gold will fall during an upcoming recession, what effect the dollar and the stock market will have on the future of gold prices, and how to profit from a gold collapse while the majority of investors lose out.* There are plenty of warning signs that gold is about to decline and this book will help you to get ready* Gold Bubble is the only book to argue that a gold bust is coming, going head-to-head with the herd mentality* Filled with practical advice on how to protect yourself and even profit from gold's collapse by being prepared for what's aheadWith gold prices up over 2,500 percent since 1970, and more than 600 percent since 1999, a bubble has formed and is on the verge of bursting. But until now, no one has been willing to publicly bet against the universal currency. With Gold Bubble you are ready to meet this challenge head on, and take advantage of what other investors won't even acknowledge.
From the contents
Preface viiDisclaimer xiiiCHAPTER 1 Why Gold? 1Understanding Gold's Surge 1Why the ''Gold Bugs'' Are Wrong 4CHAPTER 2 Bubble Enablers and Precipitating Factors 5Removal of the Fixed Price for Gold in 1968 5Poor Market Performance and Capital Diversion 6Uncertainty 7Currency Troubles 8Emerging Market Growth and Demand 8Hard to Value 9Introduction of Gold ETFs 9Former UK Prime Minister May Be Responsible for Gold Bubble 9Illusion of Safety 13Conclusion 13CHAPTER 3 Signs of a Gold Bubble 15Parabolic Price Increases 15Massive Publicity 21Overspeculation 29Extreme Expectations 45Conclusion 56CHAPTER 4 Gold Takes On . . . 59Deflation 59Is Gold a Safe Haven During Recessions? 60Gold versus Various Asset Classes: Ratio Analysis 63Conclusion 65CHAPTER 5 Price Analysis and Forecasts 67Gold Bubble Anatomy: Is a Parabolic Spike Coming? 67Gold's Place in History: Elliott Waves 70Price Target for Gold Collapse 77Fibonacci Time Relationships 79Seasonality 81Conclusion 83CHAPTER 6 What Does Gold Depend On? 85Herd Mentality in the Stock Market 86Are We Headed for Another Great Depression? 88Market Cycle Predicts Recession 97The Dangers of ETFs 104What about the Dollar? 117Emerging Market Troubles 123Middle East Upheaval 136European Crisis 139Conclusion 141CHAPTER 7 Calling the Top: Signs of Reversal 143Lagging Mining Stocks Signal Reversals in Gold and Silver Prices 143Bernanke and Buffett ''Puzzled by Gold Rally'' 149Dollar Strength and Market Weakness 150Declining Momentum 151Big Guys Selling: ''Smart'' Money Leads the Way 152Is the Commodity Run-Up about to Reverse Course? 154Has the Bubble Popped? 165CHAPTER 8 Ways to Profit from the Collapse of the Gold Bubble 167Short Gold 167Short Gold Miners 168Options Strategies 168Short Rare-Earths 169Betting on History: A Gold-Platinum Pair Trade 170Forget Gold, Buy Diamonds 171Buy Stocks Instead 176Buy Physical Property, or Invest in Housing Stocks? 177Conclusion 186CHAPTER 9 Other Investment Land Mines to Avoid 187''Cloud Nine'' Computing: Sign of a Renewed Technology Bubble? 187Betting against Facebook 193Is IPO Mania Warning of a Tech Bubble 2.0? 206Netflix: Setting Up for Disaster 213Conclusion 231Notes 235About the Author 245Index 247