Britannia Radio

My Conversation with One of the World's Smartest Gold Analysts By Frank Curzio, editor, Penny Stock Specialist Friday, May 27, 2011 Gold stocks are in correction mode. Over the past 45 days, the Market Vectors Gold Miners Fund (GDX) – a basket of large gold stocks – is down 11%. Small-cap gold stocks have fared worse. Some names are down more than 15% in the same timeframe. So with the pullback in gold stocks, should investors be buying here? ----------Advertisement---------- After 2 years, our breakthrough is finally online We recently planted a "spyware" program in the stock market. Along the way, we spent $500,000 and hired 15 Russian programmers and a Ph.D. mathematician to help us. What this means for you is a chance to make a fortune right now. To see what we've done, click here for our full presentation. --------------------------------- According to John Doody, the answer is "yes." John writes the Gold Stock Analyst newsletter. And he's been writing about gold stocks for three decades. He's lived through the biggest booms and busts in the industry. Over the past 10 years, his top 10 holdings outperformed the price of gold by more than 900%. On Wednesday, I talked to John on the S&A Investor Radio podcast. (That's a free weekly investor radio show where I interview some of the top market analysts on Wall Street – including your favorite editors at Stansberry & Associates.) This week, John and I had a conversation about gold prices and gold stocks. He said gold stocks outperform the metal by an average of 2-to-1 over time. But right now, while gold stocks are falling, gold prices are holding steady. The metal has outperformed big gold producers by about 12%… According to John, this pullback in gold stocks – while gold prices are moving higher – is a buying opportunity. Another reason John loves gold stocks right now is because the "real interest rate" is negative. The real interest rate is the rate of return on your cash in the bank, minus inflation. You see, gold pays no interest. If money in the bank is paying a good interest rate, holding cash is more attractive than holding gold. But right now, bank rates are paying next to nothing in interest. Plus, inflation is over 1.5%. That means the real interest rate is negative, and gold is more attractive than cash. During times of negative real interest rates, gold stocks soar. And with the job market remaining weak and the U.S. economy growing less than 2%, the real interest rate will remain negative for at least another two years – probably much longer. With the sudden drop in gold stocks, my advice is to follow what the smartest person in the world is doing. Today, John Doody is backing up the truck on gold stocks. I suggest you do the same. Good investing, Frank Curzio P.S. The S&A Investor Podcast is one of the most popular financial programs on iTunes. To listen to John Doody's full interview – and one of his favorite gold producers to buy right now – click here. Further Reading: Our own Jeff Clark is excited about this idea, too… He says now is the best time in two years to buy gold stocks. Earlier this week, Frank warned about a small cap correction… and offered a defensive strategy to protect yourself and your money. Read more here: The Best Way to Make Money in Tiny, Under-$10 Stocks Right Now. Email Story Print Thursday, May 26, 2011 Must-see charts show how China is vacuuming up the world's gold supply And this demand explosion is just beginning… Thursday, May 26, 2011 The Government wants your car: Monitoring devices are being mandated soon The device U.S. drivers have to have in their car next month… Thursday, May 26, 2011 Your personal trainer is an idiot: Here's the diet you should adopt to immediately and safely lose weight This eating strategy is the opposite of mainstream and government recommendations… It's also much healthier…