There are no doubt some spectacular buys out there.  Of course, stocks are cheap for a reason – and cheap stocks can get cheaper.  But unless the bull market in gold is over – a belief I do not accept – this thing will turn around at some point.

For those who believe likewise, one strategy would be to dip a toe in after we get a technical buy signal.  The reason for just a “toe” is three-fold:  (1) We don’t know where the bottom is yet, and technical buy signals are often wrong.  (2) The wise investor never expects to buy at the absolute bottom. (3) This bull market as a long way to run so there is no emergency to buy right away.

As always, do your own research before buying.

(Click chart below to enlarge.)

Note that I am a paid subscriber and receive no compensation if you do subscribe.

• “Core” CPI-U Inflation Hits Cycle High
• April Year-to-Year Inflation Softens: 2.3% (CPI-U), 2.4% (CPI-W), 9.9% (SGS)
• Real Average Weekly Earnings in Ongoing Year-to-Year Decline
• Retail Sales Were Stagnant, Statistically Insignificant

• Major bottoms are typically formed when negative sentiment is at an extreme.  We’re probably near or at that stage now.
• The factors that have been driving the gold bull market for ten years have not abated.  They’ve intensified.
• The hedge funds live to wreak havoc in markets so it would seem.  As they can push markets down, so they can also push them up.
• While markets can stay oversold for an extended period of time, gold is oversold.
• Some of the major money center banks, which have not always been friendly to gold, now have bullish forecasts for the rest of 2012.
• Foreign central banks are buying gold.
• Federal deficits are projected as far as the eye can see.  Thus money creation by the FED is baked into the cake.
• The COT report can be interpreted as bullish for gold.

None of this means a major upturn in gold is imminent.  But it could be.  However, to argue that gold bull is over is very, very tough to do.  Could someone make money shorting gold in the short-term.  Certainly.  By staying short for the long haul?  Very unlikely.

Do some research on your own.  Try to set your emotions aside.  Then make your decisions.

By the way, I’m still long.

And here’s the chart that’s driving gold bugs nuts.  Click to enlarge.

Getting financially established while you’re young can help you set up a solid financial future. Many young people fall into financial pitfalls that ruin their chance at financial freedom. One of the most important financial tips for young people is to be smart about credit card use.

First, when you get a credit card, make sure you choose a good card. Check out the interest rate and find out if there are any perks that may help you to save some money over time.

Once you get a credit card, make sure you only use it sparingly. It’s easy to get into credit card debt that will ruin your financial future. Make sure you only spend on a credit card when you have to and ensure you pay off what you spend as soon as possible.

Saving money is a better way to meet your financial goals. Keep a credit card for emergencies but make sure your credit card doesn’t sabotage you financially.

• Grocery store websites – Many groceries stores have websites that have printable coupons.

• Sunday Paper – If you get the Sunday newspaper, you’ll usually find a lot of grocery coupons.

• Coupon Sites – Many coupon websites offer promo codes and printable couples for grocery items.

• Product Websites – Look at product websites to find coupons for specific food items.

• Store Fliers – Grocery stores often send out fliers that have special deals and some even have coupons to help you save more.

So are some of the miners now screaming buys?  Probably, although they can remain comatose for a bit longer.  Sooner or later, I believe things will break loose largely because the circumstances that give rise to higher gold prices have not abated at all.

Keep in mind, also, that the market cap of the entire gold mining sector of the stock market is not large relative to other sectors.  In other words, if we get a significant move into the gold miners, the result could be stunning.  No guarantees, of course.  And do your own research.

Anyway that’s why I continue to hold various gold mining stocks.  Perhaps you should, too?

Note that I am a paid subscriber and receive no compensation if you do subscribe.

• For Second Month, Household-Survey Employment Fell as Payroll Growth Faltered
• April Unemployment: 8.1% (U.3), 14.5% (U.6), 22.3% (SGS)
• Annual M3 Growth Weakened in April as Velocity Rose
• New Indicator Shows Intensifying Systemic Stress
• Impaired Construction Spending Continued

1 – Are the factors that have caused gold to rise every year for the past decade coming to an end? In other words, do you expect governments to return to sound fiscal and monetary policies anytime so? Do you even expect them to move in that direction? In other words, are the movers of the gold price still in place? I believe they are.

2 – What is your time frame? Have you been acquiring physical gold and silver, hopefully on the dips to use as insurance against the debasing of the U. S. Dollar? If so, you are in this for the long haul. Or are you trading the precious metals via the futures markets using considerable margin and thus have a short time frame? If you are doing the former, and have been doing it for some years, you should be very happy and somewhat relaxed. If you are doing the latter, you really have your work cut out for yourself, and unless you are very good at what you’re doing, you are possibly in the hole and very stressed. Of course with the micro gold futures contract a small trader can be successful with gold futures provided he or she is very careful to avoid excessive margin, studies the markets carefully, practices good money management, and is-well disciplined. Only you know what you are.

Now take a look at these two charts and think carefully about where you believe the trend is headed and how easy it would be to be on the right side of the trend. In one chart each bar represents the price move during one month – in other other, one day. This should give you some help in determining what sort of precious metals trader/investor you wish to be.

(Click on charts to enlarge if desired.)

Tip #3 – Build Your Own Emergency Fund

Do you have an emergency fund built up? If not, 2012 is definitely the time to start building one. In this economy, you definitely have to think of how you will pay your bills if you lose a job or you have a health problem that keeps you from working. It’s suggested that you build up at least 6 months worth of expenses in an emergency fund, and 12 months worth of expenses is even better.

Emergencies happen. Right now, many people have lost their jobs are have found themselves in real financial trouble. Don’t wait until you lose your job to think about an emergency fund. Commit to building one this year.

So, imagine my delight as I’m having supper at my favorite restaurant while the family sitting at the booth behind me is having a discussion on the evils of central banking and, specifically, the founding and nature of the Federal Reserve Bank! Included in their discussion was support for several of the principles that those of us who are adherents of the Austrian School of economics hold dear. How encouraging! (And, no, I’m not given to eavesdropping on others’ conversations. But when they are less than three feet away … and speaking in at least a normal tone of voice … it’s clear confidentiality was not one of their concerns. In other words, I couldn’t have missed what they were saying if I tried.)

And I’m glad I didn’t miss their conversation. This was a very normal-looking family – no “tin-foil hats” on – nothing to identify them with any “radical” causes as many in the media like to portray advocates of sound-money and limited government. It was just, plain encouraging to me.

But I wonder where they are getting this knowledge. Could it be that the internet is making the difference? Are we really reaching people? I watch very little television, but unless they are watching some specialized cable channel, I’ll bet they’re not learning about the FED and the economically destructive impact of central banking on TV.

Whatever the case, it was a good dinner.