New NIA Option Suggestion
In 2014, NIA believes we will see precious metals and agricultural commodities make their largest gains in history. NIA’s #1 way to play next year’s agriculture boom is its stock suggestion Agria (GRO), which broke out big on Friday rising $0.10 or 7.24% to $1.48 per share. In NIA’s opinion, new 52-week highs are coming for GRO very shortly.
NIA would like to take this opportunity to announce its #1 way to play next year’s rally in precious metals. NIA suggests for its members to research the January 2015 Market Vectors Gold Miners ETF (GDX) $25 call option, currently priced at $1.92. GDX is a gold stock ETF with its top three holdings being GG, ABX, and NEM, three of the safest gold mining stocks. GDX is currently trading for $21.25 per share.
Investors who buy the January 2015 GDX $25 call option at $1.92, will at least double their money if GDX rises by 35.7% to $28.84 per share within the next 55 weeks. If GDX itself rises by 100% to $42.50 per share over the next 55 weeks, NIA’s GDX call option suggestion will be worth $17.50 for a potential gain of 811.46%. The contract expires on January 17, 2015.
GDX mostly tracks the same stocks as the HUI Amex Gold Bugs Index. To determine if gold stocks are undervalued or overvalued, NIA closely tracks the HUI/Gold ratio, which is the latest HUI price divided by the price of gold. The HUI/Gold ratio is currently down to 0.163, well below its 17 year average of 0.37. In fact, the last time the HUI/Gold ratio was this low, was all the way back in 2001 – at the very start of the current gold secular bull market.
Gold’s secular bull market is far from over and NIA believes this is a once in a lifetime opportunity to make a fortune off of artificially low gold mining stocks. Although it’s true that many gold miners are losing money at this very moment, it’s already more than priced in! NIA has seen many gold miners in recent weeks take steps to reduce their expenses and focus on the production of high grade gold resources. The fundamentals of gold mining stocks are beginning to rapidly improve! In 2014, NIA believes large-cap gold mining stocks could rise 3-4X faster than the price of gold!
If gold merely rises 23.5% in 2014 to $1,500 per oz, and the HUI/Gold ratio returns to its historical average of 0.37, the HUI would rise from its current level of 198.18 up to 555, for a gain of 180%. If the HUI rises 180%, GDX most likely would also rise 180% to $59.50 per share, which would cause NIA’s option suggestion to rise to $34.50 for a potential gain of 1,697%!
NIA spent the past 5 hours programming for its members a brand new 17-year chart of the HUI/Gold ratio, complete with its 17-year average. When the HUI/Gold ratio declines below the red line, gold stocks are undervalued – and when the HUI/Gold ratio rises above the red line, gold stocks are overvalued. Check out the chart below:
NIA’s new charts page will be launching on January 1st, 2014, when the updated version of its new web site officially goes live. This chart will be just one of many new exclusive NIA charts.
NIA is not an investment advisor and is not making any target prices or financial projections. Never invest based on anything NIA says. Always do your own research and make your own investment decisions. NIA never recommends to buy or sell any stock.
Disclaimer: NIA currently owns 550,000 shares of GRO. NIA intends to sell its GRO shares and can do so at anytime. NIA reserves the right to add to its GRO position at any time. NIA initially discussed GRO in a private report that was released to a small exclusive group of NIA members over two years ago.
This email is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This email is meant for informational and educational purposes only and does not provide investment advice.
Additional legal disclaimer information: http://inflation.us/legaldisclaimer.html
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