Download - The Joseph Anointing & Wealth Creation
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T
Revelation, Interpretation &
Timing: the Keys to “WEALTH CREATION” In This Issue:
Revelation, Interpretation & Timing: The Keys to Wealth Creation! By Ken Storey
Pg 1 Over the past decade, Ken Storey earned returns as high
as 2,712% after he began investing according to insight he
believed he received from God.
Are We Facing a New Recession?
The Rest of the Story… Since retirement, I’ve become more
dependent on my investments.
People in my situation tend to be
more cautious. So I did what
everyone told me to do: I entrusted
my finances to “the experts.” The
results were very frustrating and very
expensive! Every month, I’d look at
a spreadsheet covered in red.
Whether they were aggressive or
conservative, my stockbrokers just
kept losing me money.
At this point, I turned to the Bible to
see what it had to say about
investing. As I studied the parable of
the ten minas (Luke 19:11-27), I saw
that the minimum the master
expected from his servants was to
earn interest in a low- risk setting.
However, those who were
commended and rewarded had
stepped out and taken risks; they had
gained much because they had
ventured much.
The master wanted them to be proactive and trade, even though it was his money that could have been lost!
Holding onto the master’s money
in fear and doing nothing was a
direct violation of his command,
“Do business while I’m gone,” and
had severe consequences.
Everything I have is “the
Master’s money,” –
and I saw that the Lord
wanted me to step out and
take more risks.
Even though I’d never done it
before, I knew He was calling me
to manage my own portfolio, to
steward it myself, and to trust Him
to guide me. After all, I had been
a Christian for four decades;
surely He could speak to me.
I still remember setting up my
Fidelity account and making that
first trade. I sat staring at the
screen for a long time, my hand
on the mouse, holding my breath
before I took the plunge and
clicked. It was nerve-wracking,
but I’m so grateful I obeyed the
Lord. Had I not done so, I would
not have made the profits I have
now, and I believe I probably
would have taken heavy losses
during the last stock market dip.
Pg 3
Free Educational Videos by Prophets & Marketplace Leaders
Gain Supernatural Insight Through Dreams
Gaining Strategic, Supernatural Insight
Pg 5
Pg 6
Who Else Wants to Protect Their Wealth and Even
Prosper During Crisis?
Pg 7
4 Dos and Don’ts to Surviving a Stock Market Downturn
Pg 9
Pg 10 Why We Believe Gold Could Go to $5,000 an Ounce
Pg 11 How to Invest in Gold – Risks and Reasons
One of the things I had been looking into was alternative energies. I had been reading analysts’ reports about different crops that might emerge as the leader in bio-fuel production. Opinions differed on which crop to recommend. Would corn, sawgrass, soybean or another crop be the profitable investment?
At the time, no-one knew for sure and most suggested trying everything and waiting for a winner to emerge…
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Investing With Insight © 2013 1
Revelation, Interpretation & Timing: the Keys to “Wealth Creation” c o n t i n u e d
a. The Lord is interested and Having no idea what it was, I did a
Google search and was stunned to
find that it was the name of a
mining consortium.
After thirty years of working as a
structural engineer, I like data to
be accurate and verifiable. I don’t
like hype or hysteria, but I couldn’t
ignore what had happened to me...
So I did my due diligence,
researching the consortium in
depth before I invested.
Since then, I’ve made between 50
– 427% on different mining stocks.
(If you are interested in finding out
more about the different mines in
this consortium, detailed profiles
can be found online at our site.)
However, timing is very important
in the stock market. Just because
you achieved big returns in the
past does not mean you can
repeat your success in the future.
After this, I’ve had other dreams
that gave me investment
guidance that has been profitable
and that I believe was from the
Lord. Revelation puts us in the
right ball park. Then interpretation
and timing come in to give us
more crucial detail. Then we apply
proper investment strategies,
technical indicators and money
management to bring about
wealth creation.
Have you ever felt the Lord was
speaking to you about the stock
market? If so, we’d love to hear
your story at our Christian
investor community forum!
(Click Here >>) We look forward
to meeting you!
involved in the financial realm.
Just as in Joseph’s time, he is
releasing strategic understanding
to his people about the future and
how to take action.
b. The Lord is speaking to
people who often don’t even
realize that what they’re hearing
has implications for investing,
so don’t disregard something
just because you don’t
understand it at the time.
KEN STOREY
“I believe we’re in a Joseph season when God is prophetically speaking to many of us in unusual but very specific ways”
Joseph season’ when
God
many of us about investments in unusual but very specific ways
could be speaking to
c. Dreams or other prophetic
insights are only a starting
point for making investment
decisions. Every prophetic word
or dream must be carefully
judged and we must be diligent to
do our own research in areas we
believe the Lord is highlighting. The Lord gives one person a
dream and someone else the
understanding of it to teach us to
work together as the Body. This is
one of the reasons I’m so excited
about the Insight forum where
people can share their prophetic
insights and other people can
comment on or interpret them. It’s
a blessing to everyone who gets
involved.
Another interesting story relates
to an experience I had myself.
Nine years ago, I was woken
several times during the night by
a voice repeating the words,
‘Hunter Dickinson’1 to me about
twenty-five times.
of mine named Nick had a dream in which Jesus walked up to him and said, “I’m not done with the soybean yet.” Mystified, Nick called me to share
this odd dream, having no idea
what it meant. Nick is not an
investor and knew nothing about
bio-fuels but I knew the Lord was
speaking through him!
In response to that dream, I did
some research and then invested
in Bunge Ltd. (NYSE: BG), a
strategic soybean company, and
in six months, I made
approximately $13,000, or a 44%
return on my investment, which I
shared with Nick, since he was
the one who had the dream.
I share this story to illustrate
several key points:
1At the time of writing, principals in Investing With Insight own stock in several Hunter Dickinson companies.
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Around that time, a friend
d.
Are We Facing a New Recession?
There are conflicting views on our
economy. On the one hand, Alan
Greenspan, Former Chairman of the
Federal Reserve said he believed
chances of a recession were “less
than 50-50.”1
On the other hand, Former US
Treasury Secretary Larry Summers
warned that “the risks of recession
are now greater than they’ve been
any time since the period in the
aftermath of 9/11.”2
The stock market has rallied for the
last several years. Central Banks,
especially the Fed has implemented
Quantitative Easing (QE2, 3, Infinity,
etc.). The markets of the world have
been flooded with liquidity driving up
stock prices to unrealistic levels.
Despite the recent rally, the US
economy still has troubling
weaknesses, not to mention our huge
trade deficit. And because there were
no fundamental changes in the
nature of the US economy to justify
such a massive market move, the
stock market rally will certainly be
followed by some sort of “correction”
or fall. The question is, how severe
will it be? And when will it happen?
Let’s look backwards for an insight
into how God leads:
In October 2006, on the Day of
Atonement, Bobby Conner had
a visitation from the Lord. Following
this encounter, he shared publicly that
the stock market in 2007 would be
marked by great volatility, including
“a hop, skip and a jump.”
marked by great volatility along
the way. This is in fact what has
happened. It certainly was a
volatile year and we saw three
clear peaks in that year.
B O B B Y C O N N E R ( D A Y O F A T O N E M E N T ) 2 0 0 6 M O R A V I A N F A L L S , N C
1. S TOCK MARKET WILL BE MARKED BY VOL ATILIT Y
2. THE YEAR WILL BE A “HOP-SKIP-AND J UMP” FOR S TOCK MARKET {TRIPLE J UMP}
DJIA (DOW)
1 Y E A R
14,500
14,000
13,500
13,000
12,500
12,000
11,6
T I M E
OCT NOV DEC JAN FEB MAR APR MAY
2006 2006 2006 2007 2007 2007 2007 2007
JUN JUL AUG SEP OCT NOV DEC
2007 2007 2007 2007 2007 2007 2007
We took this word seriously and
analyzed it. We concluded that his
reference to “a hop, skip, and a
jump” signified market movements
that, when graphed, would look like
a triple jump, an Olympic event
sometimes referred to as “a hop,
skip, and a jump.”
Assuming the year started when
Bobby had his dream, at the
beginning of the Jewish year in
October 2006, we could anticipate
that the market was going to peak
three times and that it would be
In the “hop” phase, the Dow
Jones reached a high in January
of 12,786.64 and then “landed” in
early March, coming down again
to 12,075.96 before “skipping” to a
recording-breaking high of
14,000.41 on July 19.
Then, on August 15, the stock of
Countrywide Financial, the largest
mortgage lender in the US, fell
13% in its largest one-day decline
since the 1987 stock market crash
on fears that the company could
face bankruptcy. The Dow Jones
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1 BBC Radio 4 Interview, Sept 27, 2007 2 ABC Television, Oct 28, 2007
Investing With Insight © 2013 I N V E S T I N G W I T H I N S I G H T 3
D A
Y
O F
A
T O
N E
M E
N T
14,000.41
14,093.08
?
12,786.6
4
12,84
5.78
12,05
70.35 HOP
0.41
SKIP
JUMP
“Are We Facing a New Recession?” c o n t i n u e d
dropped to 12,845.78 in late
August, down 8% from its
previous peak on July 19, as
shockwaves from the sub- prime
mortgage crisis hammered other
mortgage companies and banks.
Then, on September 18, the
Federal Reserve stepped in,
cutting the Fed Funds interest
rate, and the market surged
upward on what we believe is the
third peak, the “jump.”
Interestingly, on October 9, 2007
the Dow broke a new high yet
again, reaching 14,164.53.The
Dow then continued on down until
it landed for the third time at the
end of the year ending almost flat.
It appears that God had told us
in advance what would be
happening in the markets a year
before they happened.
Kim Clement, a prophetic voice,
had said this would happen. On
September 8, 2007, during a
market dip, he said, “Now is the
time. Something unusual, it's
never ever happened before - in
the month of October! In the
month of October, unusual favor!”
On May 7, 2006, he prophesied
the following: God says, “Your
economy will swiftly change and
people will look back and say,
‘We thought that it was going to
be as bad as in the 1920's but
look, it is at its highest now.’”
Kim’s word about people saying
it’s “going to be as bad as in the
1920’s” is very interesting. In fact,
this is exactly what some experts
have said!
As we went through 2007 we
realized that the markets had
reacted exactly as the prophetic
revelation had foretold. We had
three peaks and three falls. When
markets would fall the prophets
would prophesy that they would
rise and they would rise.
At the end of 2007 Rick Joyner
made a statement at one Friday
night meeting that the Lord had
told him to get out of the
markets. As we look backwards
we can see that was the exact
time that the markets began their
downward move. Again, God had
warned us ahead of time.
The markets continued down for
the next year and a half and then
came another prophetic
revelation, this time from
members of Investing with
Insight.
On March 7, 2009 Ron Phillips
and Lance McGinnis stood up in
our weekly Holy Spirit Investment
Club meeting and said that they
had a revelation that week that
the markets would reverse and
begin going up again on March
11, 2009. And that is exactly
what happened. The markets
have been moving consistently
upward for the last 4 years.
We now have a new prophetic
word that we are walking out. It is
this (I will paraphrase): As Apple
Computer has fallen so shall
the US economy fall. One of our
members had a dream on
September 22, 2012 that Apple
would fall and the markets would
fall as well!
Apple has fallen over 35% into
“Bear Market” territory from the
date of that dream. This may be a
Prophetic Leading Indicator that is
showing us that the US economy
will fall in like manner.
Will it happen this year or next?
We are not sure, but our eyes are
open and we are watching for
what God might say at this critical
time in a changing world.
These scriptures give us great
comfort: 2 Chronicles 20:20 says,
“Believe in the Lord your God,
and you shall be established;
believe His prophets, an you
shall prosper.”
I Thessalonians 5:19-22 says,
“Do not put out the Spirit's fire;
do not treat prophecies with
contempt. Test everything.
Hold on to the good. Avoid
every kind of evil.”
We whole-heartedly believe both
of these scriptures, and they are a
foundation for everything we do at
Investing with Insight. Not only do
we want to weigh the words
carefully, but also believe them
and take action, since faith is best
expressed by “deeds done in
love.”
This process happens best in a
community setting. It allows us
to dialogue and share both the
revelation the Lord is giving us
personally and the research many
of us have done on these issues.
We hope you’ll join us for the
journey!
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T 4 Investing With Insight © 2013
You’re invited to a series of FREE Educational videos by respected
Prophets and Marketplace leaders…
Discover what the Lord has revealed prophetically about the critical times we are in.
S
> Learn how to find your place and
steward the resources God gives
you. Watch Lance Wallnau as he
teaches on “The Work”, Divine
Assignment, & Convergence.
Join us as we discuss the massive
shifts that are about to impact
America and the economies of the
world, bringing vast opportunities to
some as well as financial ruin for those
who are not prepared.
Hear about new technologies the
prophets have seen in heaven and that
the Lord is about to release on the earth
to bring hope and prosperity.
Be empowered to take your place of
ministry in the marketplace and fulfill
your destiny as a Joseph!
Hear practical investment strategies
and discover how you can prosper as
an investor, even if you’re just starting
out.
>
>
>
>
(Read some of Shawn’s heavenly experiences.) ClickHere>> Shawn had a visit from the Minister of Finance. Watch video here>>.
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T Investing With Insight © 2013 5
everal of our guests have had angelic encounters about global finances and God’s desire to release provision for the great harvest and strategically position his people!
Shawn Bolz, one of our co-hosts will share several of his heavenly
encounters where he saw many new
technologies and discoveries in the areas of
alternative energy, medical breakthroughs,
agricultural solutions, mining, media and
much more…
Shawn has also recently had several encounters related to specific nations that are about to experience great economic and political shifts. These insights have tremendous implications for global currencies and stock markets.
Other guests have been successful prophetic investors for many years and are experienced in hearing from the Lord, evaluating the word and taking action accordingly.
For More Information Visit:
www.InvestingWithInsight.com
CLICK HERE >>
Gain Supernatural, Strategic Insight through Dreams
Pharaoh was both the richest man
and ruler of the most powerful
nation in the world. (Think: Barak
Obama and Bill Gates rolled into
one.) Yet neither money nor power
could bring answers to the troubling
dreams that haunted him. It took
Joseph, a prisoner, slave, and son
of a nomad, to interpret them and
predict the world economy for the
next fourteen years (seven years of
plenty followed by seven years of
famine).
The equivalent of that dream today
would be that we would have a
continuous bull market in
commodities and stocks for seven
years, followed by seven years of
severe recession or even
depression.
Pharaoh was so impressed that he
placed Joseph in charge of his
entire kingdom. That’s like
President Obama promoting a
jailed, illegal immigrant to be Vice
President…except with unlimited
authority to run the country and to
execute his economic plan!
So much rested on those two
strange dreams! Without Pharaoh’s
dreams or Joseph’s interpretation,
we wouldn’t have the books of
Exodus, Numbers, Deuteronomy or
Joshua. Had Joseph’s family not
relocated to avoid starvation, there
would be no need to leave Egypt,
hundreds of years later or wander
in the wilderness, or conquer the
Promised Land.
The Bible shows how God used
dreams to predict or affect
geopolitical events, (Daniel and
Nebuchadnezzar) and also for
personal guidance (Joseph to
marry Mary, later to flee to Egypt,
Paul to go to Macedonia,
Joseph’s destiny as a ruler, etc.)
God has not changed; He still
speaks in this way! In fact, his
promise is that the “last days”
would be marked by widespread
dreams and prophetic words as a
result of the outpouring of the
Holy Spirit (Joel 2:28).
He counsels us and gives us
advice through our dreams: “I
will praise the LORD, who
counsels me; even at night
my heart instructs me.”
Psalm 16:7
“For God does speak – now
one way, now another – though
man may not perceive it. In a
dream, in a vision of the night,
when deep sleep falls on men
as they slumber in their beds,
He may speak in their ears
and terrify them with
warnings.” – Job 33:14-16
The Lord is speaking to us
through our dreams far more than
we realize; however, the correct
interpretation of a dream is as
important as the dream itself, if we
are to avoid misunderstanding or
misdirection.
One of our goals is to provide
practical tools to help people grow
in the area of dream interpretation.
In time, we will be offering online
devotional journals where you can
save your dreams or devotional
insights and access our powerful
database to help sort, search and
interpret your entries.
Along with this, we will offer
several Bible study tools. Using
this journal, you can create a
secure, lasting, electronic archive
of your personal time with the
Lord that you can access from
anywhere in the world at any time.
To learn more about how God is
speaking through dreams, go to
InvestingWithInsight.com
If God speaks in dreams and uses them to guide individuals and even predict economies, are we taking them seriously enough? Are we being good stewards
of what He’s already given us, so that He can entrust us with more?
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T 6 Investing With Insight © 2013
Who Wants to Protect Their Wealth and Even Prosper During Crisis?
As Christians, we should be some
of the greatest investors in the
world! We have a God who plans
to bless us (Jer. 29:11), speak to
us, and guide us.
We should also have the
unshakable peace of God in our
hearts. By remembering that we
are simply stewards of wealth, we
are naturally insulated against the
two powerful factors that drive the
markets and cause people to
make impulsive, irrational
decisions: a panic-driven fear of
loss and the over-confidence of
greed.
When you examine the life of
Joseph, he acquired a lot of
wealth during the seven years of
plenty. However, it was during
the seven years of famine, a time
of great economic crisis, that he
received the “great transfer of
wealth” from all nations, making
Pharaoh the richest man in the
world. How did he do this?
The best time to buy or acquire
assets by far is during times of
economic crisis. When fear sets
in, people begin acting irrationally
and selling their assets for
pennies on the dollar. A smart
investor can take advantage of
this situation.
During the seven years of plenty,
Joseph planned for the economic
disaster he knew was coming by
stockpiling assets (in this case,
grain), knowing he could use them
as currency later.
By stockpiling grain, he was able
to buy things at a “deep discount”
when the famine came seven
years later.
Here’s an example from the 20th
century. The Great Depression
was an awful time in US history as
millions of people lost everything
they owned. Yet some of the
richest people in the world gained
their wealth during the Great
Depression.
How did these people do this?
They planned their finances
carefully so that when the crash
occurred, they not only weathered
the storm, but also had money to
spend.
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J O S E P H ’ S W E A L T H T R A N S F E R
GENESIS 40 - GENESIS 47
7 YEARS OF PLENT Y ENDED
ISRAEL MOVES TO EGYPT
All Land
for Grain
Joseph’s Life Baker
Butler’s Pharoah’s 20% of Harvest Saved Manasseh Ephraim Born Born Dream Dream by Joseph
1
Joseph Turns 30
2 3 4 5 6 7 1 2 3 4 5 6 7
Joseph Turns 40
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GATHER ALL FOOD OF THE LAND Genesis 41:48
Massive Harvest. Building Grain Silos
(Storehouses)
Events in
&
CRISIS STARTS
Exchange Exchange Money Livestock for Grain for Grain
10 Return Br Brothers with
Came Benjamin J
Exchange
& Labor
others 20% of Future Get Crops Pledged to Belong acob to Pharoah 7 YEARS OF FAMINE
2 YEARS
7 YEARS OF PLENTY
STILL 5 YEARS OF FAMINE LEFT
Who Wants to Protect Their Wealth and Even Prosper During Crisis? continued
Disciple a Nation By Hearing From Heaven
When Jesus teaches us to go
into all the world and make
disciples of all nations, most
people think of evangelism
and then making disciples of
those people we convert.
When everyone else panicked
and began selling their assets for
cash in order to pay their bills or
to feed their families, savvy
investors bought land and other
assets for literally cents on the
dollar. By doing this, they were
able to acquire great wealth at
little cost.
If you have money to spend
during economic crisis, go bargain
hunting. You will find stocks, real
estate, and other assets that
panic- stricken sellers will sell to
you for a song. By doing this, you
will be able to prosper and build
long-term wealth, even during
difficult economic cycles.
However, being able to do so
takes true self-discipline and an
unusual degree of character.
When times are good,
governments and individuals
typically go on spending sprees.
Instead of saving excess cash,
they spend it on bloated
government programs or
increasingly luxurious lifestyles.
Very few people have been able
to resist the urge for expansion or
the temptation of self-indulgence
during boom cycles.
Unlike other Pharaohs, Joseph
didn’t embark on self-
aggrandizing building projects of
temples and palaces. (Overly
ambitious building projects, such
as many of the new high-rise
projects we see in the works, are
typical of a bull market at its
peak.)
Joseph resisted the temptation
to build magnificent monuments
to himself, which were the life
goals of every Egyptian ruler.
Instead, he focused on
strengthening infrastructure
(granaries) to prepare for what
was coming. He also didn’t allow
the people of Egypt to squander
their surplus on luxury items but
enforced a 20% tax on the total
harvest.
He was accountable to no one
except Pharaoh, yet he did not
spend this newfound wealth but
conserved it with great prophetic
wisdom. It’s hard to conceive of a
leader in history who has
stewarded the wealth of their
nation with as much foresight and
diligence as Joseph did.
Sadly, not only has America
consumed her surplus and not
saved, we’ve run up mammoth
personal debts and national
deficits. The economic crisis of the
last five years has been harsh
proof of our nation’s lack of
foresight.
We are in great need of men and women who walk in the anointing, character and wisdom of Joseph, releasing the strategies of heaven to preserve our economy as well as oversee a great transfer of wealth.
But Joseph didn’t impact Egypt this way, and Daniel didn’t impact Babylon by converting people to become Hebrews; they did it through strategic influence in culture, politics and the economy.
The amazing thing is it only takes 3– 5% of the population to form a tipping point that creates a culture.
This is because a minority
occupying the high places is more powerful than the majority
that is essentially irrelevant to the
process.
Evangelicals make up more than 30% of the population in the US, yet a 5% liberal minority controls much of the social and cultural agenda… How could that happen? It
happens because we put more
energy into making converts
than sending converts into the
high places.
When the Church takes what
God gave them and goes into
the situation, they create
solutions that nations can’t find
on their own. The moment
Christians create these
solutions, like Joseph did in
Egypt, they have a platform
that can disciple a nation.
Do we have supernatural
answers to problems? Can we
press into heaven for solutions to
economic and social issues?
Can we become a force that
can literally transform culture?
Nations are opening up in ways
they never have before. Can
you believe God will use you?
-- Lance Wallnau
LanceLearning.com
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The 4 Do’s and Don’ts of Surviving a Market Downturn
DO: DON’T:
1. Don’t Panic. Fear usually leads you to do foolish things like selling
good assets for bad prices. Have a plan in advance.
2. Don’t assume that your mutual fund
manager will take care of things. Remember that the vast majority of money managers
don’t even outperform the S&P 500 index. When the
market goes south so do their investments. Check on
the performance of your mutual funds. Do they have
exposure to risky assets? If they do, then don’t wait to
get out.
3. Don’t convert your assets into
bonds.
Bond yields are pretty low, with stable investment-grade
bonds hovering around 5%, and with the current Fed
President in charge of the Federal Reserve, bond yields
are very low. With rising inflation, that means your end-
of-day “real” yield could be as low as 0%. What’s the
point? If you want pure safety, you’re probably better
off putting your money into gold, silver and oil ETFs. At
least you can convert those assets to cash quickly,
which can be used to invest in other assets at the right
time. If things really get bad then buy bullion.
4. Don’t take your money out of the market altogether. Worse than putting your money into bonds is putting all
of it under your mattress which guarantees it isn’t
working for you but is being devalued by inflation. Just
put some under the mattress. It may take a little out of
the box thinking, but you can almost always find ways
to keep your money working for you, regardless of the
economic climate.
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1. Reduce your risk profile. Look at selling your speculative assets, including some
of your emerging market funds (they almost always tank
during market crashes) and your microcap stocks.
There’s a reason why speculative stocks and properties
are called “boom or bust” investments. Unfortunately,
they usually bust more than they boom, and the vast
majority of them don’t survive market crashes. So you
are better off cutting your losses and putting your cash
into something more stable.
2. Find alternative investment
vehicles. Look at alternative investments like stable overseas
markets and commodities. It is impossible for EVERY
asset class to tank simultaneously. There is money to
be made. You just need to know where.
3. Reallocate your portfolio. Take advantage of the crisis to sell off some of your
non-performing assets and exchange them for quality
assets that you know are going to survive the crash
and that are cheap because of irrational market panic.
4. Watch for bargains. Market crashes are the best time to find deals on great
stocks.
Are you a modern-day ‘Joseph’
who believes God still speaks about
economies and nations today? Got a similar vision, we’d love to meet you!
Join our friendly and supportive Christian
investing community today.
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Why We Believe Gold Could Go to $5,000 an Ounce
Some people are worried that
the price of gold has risen so fast
that it has already peaked and
there may be little room for it to
grow.
However, even after the recent run-
up in price, gold is still quite
undervalued. In fact, at $1,600 per
troy ounce, it still is well below its
peak in 1980, worth approximately
$2,300 per troy ounce in inflation-
adjusted terms.
There is a projected shortage in
gold supply due to low production
and recycling levels.
So far, rising gold prices have
done little to reduce physical
demand, but the manipulators
of paper gold can still force the
price lower through their
unethical measures.
Gold has historically tracked the
price of oil since the mid 1960s.
However, this relationship faltered
for about seven years between
1999 and 2006 as the price of
gold rose a lot slower than the
price of oil. But beginning in 2007,
this relationship began to re-
establish itself in a strong way,
with gold prices rising to close the
gap.
In order for this historical relationship
to be fully restored, with oil at
approximately $110 per barrel today,
the price of gold would have to rise to
approximately $2,500 or higher.
Using this measure, there is still
significant room for the price of gold
to increase. If our forecast is for a
fall in the price of gold then we will
notify you in a Special Bulletin.
As with all investments, past
performance is not a perfect
indicator of future performance.
However, the fundamentals are
there to support a large increase in
the price of gold in upcoming years.
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HOW TO INVEST IN GOLD: Three Common Gold Investments
Pros:
Insurance against catastrophic events
that could affect the price of your
stocks, bonds, and other instruments.
Great for preserving wealth as a
“store” of value; unlike stocks or even
bonds, your gold will never be worth
nothing.
>
Pros:
Easy to buy, if you have a brokerage account. Very liquid: very easy to buy and sell.
> >
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Pros:
Allows you to get in and out of gold
quickly (high liquidity) without
worrying about actually buying and
selling physical gold; you can buy
it easily from most online brokers.
A great way to invest in gold
without actually “taking physical
delivery,” that is, without having to
keep it lying around the house.
Cons: Cons: > > It needs to be hidden, protected and
stored securely.
It doesn’t generate cash or income
(i.e., no interest or dividends).
While it’s easier than you think to buy
and sell (you can even buy it online),
it’s not as easy as buying and selling
stock (i.e., not as “liquid”).
There’s a chance, though probably
small, that one day the government
will repossess all privately owned gold
“in the interest of the United States of
America” (it has happened in the
past).
> Since you’re buying a company, not
a commodity, you can lose all your
money if the stock goes to zero.
Unlike one-ounce bullion coins, there
is such a variety in mines and mining
companies that you really need to do
your research to make sure you pick
the right stock or stocks. We
recommend diversifying across a
number of mining stocks, rather than
putting your gold investments into a
single mining stock.
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Cons:
> You’re not actually buying gold; you’re
buying something that is designed to
track the price of gold. Just because
a gold ETF is tracking the price of gold
today doesn’t mean that it will
accurately track the price of gold
tomorrow. So it’s not a true substitute
for gold ownership.
Remember: you own a piece of paper
that is backed by gold, not the real
thing. If for some reason the gold that
is backing that paper asset doesn’t
exist, your paper is worthless.
I N V E S T I N G W I T H I N S I G H T
Investing in gold is a larger, much more complex topic than can be covered here. For information on the other means of investing in gold, key questions to ask when considering gold investing, and detailed information on the mechanics of buying and selling these products, please visit InvestingWithInsight.com
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3. Mining Stocks
What It Is: These are stocks in gold
mining companies. If you’re leery about
holding gold bullion, you can invest in
the next best thing: a gold mine. Like
any other sector, within mining stocks,
there are safer mines and riskier mines.
No two mining companies are alike,
which is why you need to do your
homework.
2. Gold Exchange Traded Funds (ETFs)
What It Is: Gold ETFs are stock-like
instruments that track the actual
market price of gold. You can buy
and sell shares just like you would
an individual stock. When you buy a
share of a gold ETF (e.g., GLD), you
are buying a certificate that is worth,
more or less, the price of 1/10 of an
ounce of gold. Gold ETFs have
become very popular since the first
one launched in 2004, and remain
an easy way for first-time investors
to get involved with the gold market.
1. Physical Gold
What It Is: Gold in your possession,
usually stored in a safe or safe deposit box. This can take the form of one ounce gold bullion coins (e.g., American Gold Eagle), gold bars, or numismatic (rare) coins.
How to Invest in Gold c o n t i n u e d
RISKS of Investing in Gold
There’s no such thing as a
sure thing. So while we strongly
believe that gold is a smart
investment for both conservative
and aggressive investors, we also
want you to know the risks.
Central Banks could
begin selling it to the
public. Central Banks (the Federal Reserve
in the US, the Bank of England in
Great Britain) are historically the
ones who own the most gold. Rarity
and scarcity make something
valuable. On the flip side, if you want
to make something less valuable,
you create or release more of it into
the public.
Central Banks may begin selling
their gold to the public to keep the
price of gold down. There are a lot of
people who believe that Central
Banks have already been doing this.
Whether or not this actually
happened is not important. The
important thing to know is that
Central Banks might try to suppress
the price of gold by selling more of
their gold to the public.
Economic recession
reduces the demand for
gold.
If the worldwide economy slows
down, then the demand for gold will
slow as well. However, the demand
for gold is so substantial that it
would take a pretty big recession to
affect it.
With the decline of the dollar, the rise of inflation, and the public’s growing awareness, interest in gold is near an all-time high and is projected to continue for years to come.
There are two cautions, however. As with all investing, gold investing must be done methodically, wisely, and never based purely on emotion. Second, gold should only be a part of your overall investment strategy.
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T 12 Investing With Insight © 2013
Countries could outlaw
citizen-owned gold.
This is no joke! People forget that
from 1933 to 1975, it was illegal for
US citizens to own gold. Franklin
Delano Roosevelt, the President in
1933, outlawed private ownership of
gold “in the best interests of the US
government.” From 1950 until 2004,
it was illegal for Chinese citizens to
own gold.
What are the chances that the
government could do it again? It’s
hard to say. While it’s difficult to
imagine this happening again, it also
seemed unlikely that the Red Sox
would win the World Series a few
years ago.
Gold prices are volatile.
This isn’t really a danger, per se, but
a caution. Commodities markets tend
to be volatile and prices usually
fluctuate more than the stock or bond
markets. If you think that gold has
great value in the long run, this is
probably less relevant, since you are
probably going to “buy-and- hold.”
But if you’re trying to make short-
term gains on gold, watch out.
Volatility can kill you.
For more information on gold investing, go to InvestingWithInsight.com
CLICK HERE >>
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How to Invest in Gold c o n t i n u e d
8 REASONS to Invest in Gold Right Now
1. Demand far exceeds
supply
Approximately 2,500 metric tons of
gold are mined and refined each
year while the aggregate demand
for gold is estimated at 4,000
metric tons per year. Not only is
demand far greater than supply,
but demand is projected to grow
much faster than supply can be
increased.
Investor demand for gold is
exploding all over the world,
particularly in the US, China and
India. Since 2004, Chinese citizens
were allowed to own gold, which
raised demand sharply. India has
also loosened restrictions on its
citizens owning gold, boosting
investor demand by 100+%
between 2005 and 2013 alone!
Industrial and consumer demand
for gold is also increasing. Gold
doesn’t rust or corrode, it conducts
both heat and electricity extremely
well (better than copper), and it
can easily be shaped. The use of
gold for industrial use in
electronics is accelerating as
society becomes more “wired.”
Demand for gold jewelry has
skyrocketed as millions of new
middle-class Chinese and Indians
seek to buy this historically valued
status item.
2. No increase in supply
for the next few years
Increasing the gold supply is a
slow and difficult process. Even
when gold deposits are confirmed,
it takes a minimum of 10-15 years
to bring a mine online. During that
time the demand will have grown
again. Despite aggressive
exploration, gold production
around the world is dropping.
South Africa’s gold output has
fallen in recent years. It is now at
its lowest level since 1922!
Canada’s gold production fell a
whopping 11% to 104 tonnes.
Gold output also dropped for the
US, Australia, Russia and Peru.
3. The less gold that is
available, the more
valuable it becomes.
It’s no longer an “exotic”
investment, due to ETFs
Investing in gold used to be for
“expert” investors, gold bugs, or
both. Not so much anymore.
Americans are getting used to the
idea of buying and keeping
physical gold. For those who are
leery of buying physical gold, you
can buy exchange traded
funds (ETFs) that track the price
of gold, like State Street’s GLD,
which grew at amazing rates over the
last several years, and is growing
larger still.
Greater popularity and ease of
investing usually leads to greater
liquidity (i.e., greater ease of buying
and selling it), which usually leads to
greater demand.
4. There are few good
places to invest in at
present
Though the stock market reached an
all-time high in 2007, the market has
been jittery as of late. Since the
Federal Reserve Chairman
announced Quantitative Easing
programs, stocks pushed up with the
greater liquidity. While the market
has rebounded, questions remain
about the economy. The mortgage
crisis may return and a drop in
housing prices may make real estate
a poor investment later. Commodities
are one of the few attractive
investment options left. As a result,
the price of gold has increased over
the last 10 years.
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How to Invest in Gold c o n t i n u e d
5. The US dollar is weak
A dollar buys you a lot less abroad
now than it did even a few years
ago. At a recent Berkshire-
Hathaway annual shareholders
meeting, Warren Buffett said he is
“diversifying” away from the dollar
as he expects the exchange rate to
get even worse.
The biggest reason for the weak
dollar is our huge trade deficit:
$540.4 billion in 2012. But how
does this affect the price of gold?
People run to gold when there is no
strong currency. US dollars and
gold tend to move in opposite
directions. When the dollar
declines, gold rises. When gold was
in its long declining phase in the
1980s and 1990s, the dollar soared.
Now the dollar is weakening but so
are all the other currencies. If there
is a major crisis many will at first run
to the dollar which will cause gold
to fall initially.
6. Increasing inflation
Inflation is increasing, which
means that you can buy a lot less
with a dollar today than you could
yesterday. It’s projected to get a
lot worse. People have historically
bought gold when inflation was
increasing as a safeguard or
“hedge” against it. Gold is fairly
inflation-proof. As inflation
increases, so does the price of
gold.
7. Unstable geopolitical
environment
When bad things happen in the
world, people buy gold. It is
considered a “safe haven”
investment. Terrorism, natural
disasters, and political instability in
the Middle East are reasons that
people are beginning to stock up
on gold.
As worldwide instability increases
(and most pundits believe it will),
expect demand for gold to increase
correspondingly.
8. It’s a great store of
value
Gold doesn’t rust or tarnish. It
doesn’t grow old. Gold mined
thousands of years ago is just as
good as gold mined today. Unlike
stocks or bonds, gold will always
be worth something because it’s a
“hard” or “tangible” asset. The
stock price of Microsoft can
theoretically go to zero. However,
you will always be able to sell your
gold for something.
Zedek Publishing
*Disclosure
Zedek Publishing, the publisher of Investing With Insight, is not a registered investment adviser or registered broker-dealer, nor does it endorse or recommend the services of any investment adviser or brokerage company or provide any investment advice or brokerage services. Zedek Publishing operates as a publisher and all information provided in our articles and on our website is impersonal and for informational purposes only and should not be construed as an offer or solicitation to buy or sell any security. You should always conduct your own due diligence and consult with your own licensed investment professionals, attorneys and accountants before making any investment decision. While a security’s past performance may be analyzed in our articles, past performance should not be considered indicative of future results.
To the maximum extent permitted by law, Zedek Publishing disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in our articles or on our website prove to be inaccurate, incomplete or unreliable, or result in any investment losses. Zedek Publishing, or its officers, directors,
analysts or other employees may have positions in securities or speculations referenced in our articles.
I N V E S T I N G W I T H I N S I G H T | S P E C I A L R E P O R T 14 Investing With Insight © 2013