Welcome Mining for Profits Reader!

Back in May of 2010, I created a video (which was never released to the public) discussing in detail how gold can be harnessed to supercharge investment returns in the stock market. I am currently in the process of creating an updated version which will be released to you shortly. In the meantime, feel free to watch the original video, and check out the updated charts below to see how this system has been performing in the years since 2010. (The same video is also available in an HD version if you don't mind a 142 MB download.)

As you watch the video, keep in mind that this is just one simple example of how gold pricing can improve a trading system. Technical and fundamental analysis, trailing stops, and other metrics that involve values changing over time can almost always benefit from the use of gold pricing to remove price distortions caused by fiat currencies.

Don't forget to use the newsletter sign up on the right to get access to Priced in Gold's Weekly Update emails, and to be eligible for a free Custom Chart.

If you have any questions about this video, or the counter-party risk free investment ideas in the Investing Outside the Matrix article, please email me, and I will get back to you with answers. If there is enough interest, I may do a live webinar that would give us a chance to interact more directly. Let me know if you'd like to participate.

Thanks for reading, and enjoy Priced in Gold!

Chart Updates for Stock Trading Video

DJIA, Buy and Hold from 1910:

Dow Jones Industrials, Buy and Hold since 1910

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DJIA, Trading 10 month moving average, USD signals, USD cash:

DJIA, Trading 10 month moving average, USD signals, USD cash, since 1910

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DJIA, Trading 10 month moving average, USD signals, Gold cash:

DJIA, Trading 10 month moving average, USD signals, Gold cash, since 1910

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DJIA, Trading 10 month moving average, Gold signals, Gold cash:

DJIA, Trading 10 month moving average, Gold signals, Gold cash, since 1910

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Bonus: Study With 36 Month Moving Average

While playing with this simple trading system, I experimented with many different moving averages, to see if the 10 month really was the best length of time to use. Overall, I think it is an excellent choice, balancing quick recognition of a change in direction with a limit on the number of trades. However, in the last 20 years, a longer, slower 36 month moving average has far outperformed the 10 month version. Between 1975 and 1995, the 10 month version generally performed better, catching the profits of the 1975 to 1977 bear market rally, while the 36 month version missed the rally and was whipsawed for a loss at the top. After that stumble, though, both systems performed well until the top in 1999. In the long slide from 2000 to 2012, the 10 month version was trading in and out trying to catch small rallies, but mostly just taking a series of losses. The 36 month version, in contrast, sat out the entire ugly slide, safe in gold, and made a far larger return as a result. Here are some charts showing the performance of the two systems.

DJIA, Trading 36 month moving average from 1910:

DJIA, Trading 36 month moving average, Gold signals, Gold cash, since 1910

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DJIA, Trading 36 month moving average from 1970:

DJIA, Trading 36 month moving average, Gold signals, Gold cash, since 1970

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DJIA, Trading 10 month moving average from 1970:

DJIA, Trading 10 month moving average, Gold signals, Gold cash, since 1970

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