Gold – Profits Are Rolling In

 CymorFund Follows Gold Closely, A Great Opportunity

Ingots gold

Smart investors make money in timing the market.

Timing the price of Gold is no different than timing anything else. Look at the following chart of a 5 year gold trading pattern.

Kitco 5 year Chart

 In the above chart, there are several crucial points to consider.

In September 2011, the Value of Gold Skyrocketed 

As in every cycle, and in every sector, when a security or commodity catches fire, it skyrockets too far and too quick. Whenever you see the value of anything rising in a straight line, it is time to exit. What rises too quickly, inevitably falls. 

Gold zoomed up from $1,300 to $1,900 almost overnight. BUYER BEWARE!!!

Wall Street Prepares to Harvest its Crop

This was a great opportunity for the big guys. They shorted the stocks, & made fortunes as they drove the price down. Have a look at CymorFund’s explanation of what actually happened and how it happened.

For a year, the price fluctuates between $1,600 & $1,800. The Trap is Being Set. 

For the unsophisticated, in watching the price of gold it seems that there is strength in the price and it is pausing before its next ascent.

  • Gold bugs rant about the price going to $2,500, $3,000, $5,000 and ever upward
  • Gold Bullion Funds advertise heavily – “invest now before it is out of sight“
  • Gold ETFs spring up for eager investors to have a “safer” way to invest
  • Pundits compare the total trading value of all of these funds to the actual amount of gold ever produced, and there is a gross mismatch
  • Theories abound about Conspiracies, governments controlling the price of gold, hoarding by those international cartels

The price of junior gold mining and gold producing stocks start rising – faster and faster. The value of the shares of these companies exceed the value of what they will be producing when the mines are built and producing.

It is the Inevitable GOLD RUSH – similar to the gold rushes of the last century, except with modern tools.

Next the big guys step in. 

Then The Inevitable Fall

Commodity Stocks & Wall St

 Goldman Sachs warns its clients that the price of gold has weakness. All of a sudden the price of gold PLUMMETS. 

Have a look at the 1 year gold price chart following.

 Kitco 1 year Chart

Gold falls quickly from $1,600 per ounce to $1,200. Lets look at some statistics. If you look at history, all the pros advise that a correction of 40% is normal for anything that becomes overheated.

When gold fell from $1,900 to $1,200, that was a 39% fall.  Sound like history has repeated itself yet again.

Now look at the above chart – see the DOUBLE BOTTOM. 

Chartists and technicians are always looking for signs and indications on charts that foretell the future. A double bottom is one of the strongest signals that the bottom has been reached and the path is now UP.

Lastly, look at the chart for the period between December 2013 and March 2014. A gradual and continued rise in price.

  • Gold is moving up – gradually but steadily
  • In spite of the bad news, the wars in Syria & Ukraine, gold is moving up
  • In spite of a temporary slowdown in the US economy, gold is moving up
  • In spite of India’s restrictions on gold imports, gold is moving up
  • In spite of China’s slowing growth, gold is moving up.

How To Make Money

The price of gold itself rises or falls quite a bit. As can be seen from the charts above, gold can fluctuate over time as much as 40%. To illustrate, a rise of 40% from today’s price, would put gold over $1,800. That would be an enormous move from today’s price and highly unlikely in the near future.

Junior Gold Explorers and producers stock prices rise and fall in a multiple of the gold price, and most are extremely still UNDERVALED.

When all junior stocks took that vicious beating in March 2013, most fell between 50% & 90%. These stocks have great potential for the investor. Many have recovered a bit, but nowhere near the their value before the fall. The advantages of buying junior gold stocks are

  • if they have a great asset, the stock is currently generally under priced
  • if the company survived the meltdown of March 2013, it is stronger and more resilient
  • in that meltdown of March 2013 and the subsequent winter of no interest and no money, most expenses including management salaries and overhead were dramatically reduced, making the company more profitable
  • at current gold prices, these producers can be very profitable
  • as the price of gold increases, the shares of these companies rise in multiples of any increase
  • if the price of gold falls, it can fall as much as 30% and most of these companies will still be profitable.
  • Little Downside and Large Upside.

Most Important – Timing is Everything in the Market

 Timing is everything in making money in the stock market. If you look at the price of many of these stocks, it is evident that the pros and the Funds and the Investors are now buying these stocks, and their prices are showing dramatic increases in value.

CymorFund Recommendations

Included in our stock picks are several wonderful stocks that have increased in value and have much more upside. Cymorfund includes the following stocks in our portfolio, among many others.

 Detour Gold Corporation (TSX: DGC $9.91)

Lake Shore Gold Corp (TSX: LSG $0.94)

Premier Gold Mines (TSX: PG $2.40)

Probe Mines Limited (TSXV: PRB $3.14)

Romarco Minerals Inc (TSX: R $0.87)

Analysis and write ups on each of these companies are available on our website to Premium Subscribers.

cymorfund-stock-pick-newsle

 While this website and the author’s opinions, are intended to be as accurate as possible, the information contained herein is based on sources which we believe reliable but is not guaranteed as being accurate or a complete statement or summary of the available data. We assume no responsibility for errors, omissions, or contrary interpretation of the subject matter herein. Any perceived slights, omissions, or mis-statements of specific persons, peoples, or organizations other published materials are unintentional.

This information is not intended for use as a source of legal, business, accounting or financial advice. All readers are advised to seek services of competent professionals in the respective fields. No representation is made or implied that the reader will do as well from using the suggested techniques, strategies, methods, systems, or ideas; rather it is presented for news value only. We do not assume any responsibility or liability whatsoever for what you choose to do with this information. Use your own judgment. There are no guarantees.

We may or may not have positions in securities we name. In making an investment decision consider numerous factors such as portfolio balancing, timing, cash and capital reserves, asset allocation and other. Do your own research. Matters discussed contain forward-looking statements that are subject to risks and uncertainties and actual results may differ materially from any future results, performance or achievements expressed or implied.

Views expressed are opinions and not investment advice. You should retain a licensed professional to guide you and not rely on the opinions expressed herein. This report is neither a solicitation nor a recommendation to buy or sell securities. We are not a registered investment advisor nor a broker-dealer. Any perceived remark, comment or use of organizations, people mentioned and any resemblance to characters living, dead or otherwise, real or fictitious, is purely unintentional and used as examples only.

By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.