Time To Unload Your House And Buy Gold

“If you want to protect your wealth, you have to move dollars into physical metals.  If you want to try and get rich off of what is coming, you need to own a lot of the junior mining shares.”

That quote is from an interview I did with Kerry Lutz of the Financial Survival Network (interview link).   Like me, Kerry sold his home a long time ago and has been renting.  Even with the recent Fed-fueled bounce in housing, if you sold in 2005, it was a great trade.

The more I dig into the housing numbers, the more I’m convinced that the new home sales report earlier this weeks was nothing more than a product of Census Bureau statistical manipulation (they’ve already been caught falsifying census data).  On an unadjusted basis, May had a total (supposedly) of 9,000 more homes sold than April.  But this should be expected for seasonal reasons and because May had 10 weekend/holiday selling days vs. 8 in April plus one more calendar day.

Presumably the market agrees with me, because the Dow Jones Home Construction index hit a high of 511 after the new homes sales report and is now at 497 – down nearly 3% from the post-report euphoria.  Maybe my analysis isn’t off the mark…

The second part of the interview transitions into a discussion of gold/mining shares:

“In terms of just looking at juniors…I honestly think that junior mining stocks represent the best investment opportunity in the stock market that I’ve seen in 30 years.”

I hope you take the time to listen to the interview.  I’ve got four junior stock ideas that I think all have home run potential:  Research Reports.  We have large positions in them in the fund I manage and I own them personally.