John Lansing

A Once-in-a-Lifetime Opportunity to Profit in Gold

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We are in the midst of a global liquidity drenching and everything, and I mean everything, is going to get wet. But the leader of the pack will be the precious metals sector, specifically gold.

The gold sector is the most emotional I have seen it in years, with the bulls and bears at each others throats. So I can understand why some traders may be confused.

I think the bears are dead wrong and most of the bulls are completely missing the point as to why gold is rallying in the first place. This is precisely why trading gold will stay a pros game -- so let me guide you to profits in this sector.

I became extremely bullish on gold in August, and if you've been following my updates on OptionsZone -- Don't Miss the Bull Run in Gold and 3 Golden Option Opportunities -- I hope you enjoyed cashing in on the 100%-plus winners I recommended.

To be clear, I am not one of those gold bugs. I am what you would call a "greed bug" -- I am just here for the ride and ready to move on to the next hottest sector in a year or so.

Gold Rising in Every Currency Sparks 'Global Phenomenon'

Gold gone up every single year for nine years straight and counting. None of the major indices or any other market segment I know of can make that claim, and that includes oil and every other commodity in the energy sector.

When you hear the media propaganda that the only reason gold is going up is because the U.S. dollar is dropping, then ask yourself why is it going up in every currency? After all, every currency in the world isn't in freefall, and gold is breaking out in nearly every major currency in a parabolic fashion.

See full-size chart.

GOLD Breaking Out in British Pound 

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GOLD Breaking Out in Euro

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Some of you are no doubt still sitting around questing why gold is making new highs, yet the dollar isn't making new lows. In fact, gold is even moving up even when the dollar has a good day. This week, the dollar rose and gold still managed to rally to new all-time highs.

When you make a currency bet, you exchange one currency relative to another. Often, the two currencies will have different interest rates. To "hold positive carry," all you have to do is exchange a currency with a low interest rate for a currency with a high interest rate. So that the "why."

Still confused? Who cares!