Pullback in Hard Assets Hands You Historic Opportunity.

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ETF GOLD RUSH!

70 pure power plays more than five dozen commodity ETFs and ETNs that let you profit directly as oil, gold, silver, copper, wheat and other commodities soar!

Over a DOZEN other ETFs that let you profit when commodities go DOWN!

Go for double-, even triple-quadruple-your-money gains and more no stocks, options, futures or margin of any kind required!

Three undeniable indicators for when Phase II of the greatest commodity bull market of our lifetimes will start!

In the last half of 2008, commodities got put through the shredder. Oil. copper. lead. nickel. corn. soybeans everything but gold tumbled far, far from its highs. Most investors don’t want to touch commodities with a 10-foot-pole.

But where others see carnage, I see opportunity. The fact is, there are investment vehicles that let you play both sides of the commodity market. I’m talking exchange-traded funds (ETFs) and exchange-traded notes (ETNs) baskets of commodities and commodity stocks that are reshaping global markets. And in the past year, I have used commodity ETFs and ETNs to help my subscribers rake in gains no matter whether commodities go up. or down!

Not every trade is a winner that is a fact of the markets. But commodity ETFs give you a new tool in your trading toolbox when other investors are left grasping at straws.

I’ll get to my ETFs strategy in a minute. First, let’s look at why commodities could be in for a massive rebound. It’s a trading philosophy that goes all the way back to Baron Nathaniel Rothschild.

Who’s he? Rothschild was a respected French investor who became the stuff of legend during the panic of 1871. a panic that makes our current market downturn look like a tea party.

It was a terrible time. Socialists had seized control of the French government. Paris was turned upside down, and mobs ruled. And that’s when Rothschild told his clients it was time to buy.

The story goes that a panic-stricken investor turned up in the office of M. de Rothschild and exclaimed: You advise me to buy securities now? NOW?! The streets of Paris run with blood.

Rothschild, calm as ever, answered: My dear friend, if the streets of Paris were not running with blood, do you think you would be able to buy at the present prices?

Fast-forward to today. We’ve seen the Reuters-Jefferies CRB Index of Raw Industrials, a gauge of the cost of 22 items including scrap copper, cotton and hogs, and a good indicator of economic health, tumble like it fell off a cliff.

To give you some perspective, during the eight-month recession that began in March 2001, this index fell 8.7% as U.S. industrial production dropped as much as 5.7%. The industrial-commodity index fell 19% during the recession that began in July 1981, as factory production plunged as much as 7.1%.

How much has it fallen now? Over 39% from its peaks to its lows, as factory production fell 7.3% through November.

Now, though, the CRB Raw Materials Index looks like it is starting to hammer out a bottom. Could it go lower? Sure. But it could also go a LOT higher.

Why could it go higher? I’ll give you a few reasons.

Reason #1: The Commodity Superboom Has a Long Way to Go . The good news is that, the downdraft in commodities has been brutally fast. It should be over and done quickly as short as it is dramatic. And the end of deflation will clear the way for the subsequent bull market.

Research by Morgan Stanley indicates that commodity markets tend to move together.

This chart shows the cyclical trends in commodities prices. The upswings, or commodities supercycles, can last 20 to 25 years, according to Morgan Stanley’s research. And if the current one follows the pattern, we have many years to go before it plays out.

Other commodity bull markets in modern history roughly spanning 1906 to 1923, 1933 to 1955 and 1968 to 1982 lasted more than twice as long as the current run. They included some sharp corrections before they ran their course, suggesting that the current drop, however sharp, could be temporary.

Reason #2: Central Banks Are Flooding the World With Dollars. We hear the word deflation tossed around a lot. And it’s true that the prices of copper, oil, homes again, not gold are going lower. But it’s also true that the more dollars there are around, the more prices of hard assets tend to go higher.

That’s because the more dollars there are, the more of them it takes to buy things. Well, just take a look at this chart of M2, a broad measure of the money supply that includes currency, checking accounts, savings deposits, money market funds all assets that can quickly be converted to cash. As you can see, over the past year, M2 has been exploding.

The fact is, deflation as a monetary phenomenon doesn’t exist right now. Why are prices going down, then? It’s speculative bubbles bursting in rapid succession, along with a global economic downturn.

Just remember, the economic wheel comes around. And when it does, commodities that seemed in surplus will suddenly seem scarce. And prices could go much, much higher.

And the flood of dollars is already affecting the price of one commodity gold.

Reason #3: Gold Is Leading the Way Higher. Gold is the commodity that is most sensitive to the relative value of the U.S. dollar. Gold is the anti-dollar they are on what I call the see-saw of pain. As one goes up, the other usually goes down.

So maybe it’s no surprise that gold is trending higher. But here’s the interesting news: Gold is outperforming not only the dollar, but also the CRB Index, the S&P 500 and the Dow Jones Industrial Average.

Gold is way off its highs it hit early last year, sure. But it ended the year higher. There aren’t many investments that can make that claim.

As Central banks around the world pump more and more dollars into the system, that will slowly de-value the dollar (because there are more dollars, they are each comparatively worth less). For some time, the dollar went higher despite the Treasury’s high-speed printing press. But that changed in December when the Fed announced that A) it is setting its target benchmark rate between zero and 25 basis points B) it is going to print dollars in unlimited amounts and C) it will continue to consider ways of using its balance sheet to further support credit markets and economic activity.

In short, the Fed intends to cut the dollar off at the knees, if it has to, in a by-any-means-necessary bid intended to head deflation off at the pass. That should be dollar bearish, and gold bullish.

There are other fundamental reasons why gold could and should go higher. But the important thing to realize now is that gold is showing us what will happen to hard assets as the world is flooded with more and more paper money.

Once the central banks start throwing trillions of dollars at problems, it’s very hard to stop. This is laying the groundwork for potentially massive inflation once the global economy gets back into gear.

What We Need to See to Signal the

Next Leg of the Commodity Bull Run

I expect gold (and potentially silver) should trend higher from here, but other commodities are still searching for their bottoms. This market disconnect is caused by the global recession. The good news is that there are clear signals that will tell us when commodity prices are about to shift into higher gear.

#1) Oil Prices Our nation. our civilization. the entire world functions on energy. Recently, the front month crude oil contracts were much, much cheaper than further out contracts. This is called contango, and is a clear indication of excess supply. When the front month crude oil contract starts to close the gap with future months, that will be a clear sign that the energy bear market is over.

#2) Chinese Imports Rapid economic growth in China and other emerging markets was the main driver of the first leg of the commodity superboom. We know China and other countries are slowing down because their imports of oil, base metals and grains are dropping. When that drop-off flattens, we’ll know that the Chinese economy has bottomed. and it’s time to get bullish.

#3) Baltic Dry Index This index is the price used to determine global shipping rates and prices. Like blood pressure does for humans, BDI measures the flow of goods for the economies of the world. It dropped a whopping 94% from its highs in 2008 yikes!

The good news is it appears to be putting in a bottom. We won’t know if it’s the bottom until we get confirmation from the other two indicators.

You could use other indicators to gauge the likelihood of a commodity recovery. These are just three that are easy to follow and work for me. If they all start to trend higher, we can be like Baron Rothschild and buy, even though the talking heads on TV will still be blabbing about the end of the world.

If they continue to trend lower, good news! You can still make money using ETFs.

That’s because along with ETFs that track commodity prices, there are inverse ETFs that move opposite to commodities.

All over the globe, millions of investors are dumping paper assets.

And they’re buying oil, gold, steel, wheat and dozens of other tangible assets.

Things that are soaring even when stocks plunge. and that can NEVER be worth zero!

And ETFS are the easiest way for you to maximize your profits as oil, gold, silver, copper, wheat and dozens of other commodities shoot for the moon.

Why ETFs Are a Game Changer

ETFs are a basket of securities stocks, commodities, bonds, etc. So, you don’t have to be restricted to individual mining and agriculture stocks that can sometimes be subject to the ups and downs in the stock market.

And you sure don’t have to tolerate the cardiac-inducing, roller-coaster swings of commodity futures! Not anymore.

Each commodity ETF is designed to track the short-term movements of the commodity it’s linked to. And these ETFs are as convenient to buy and sell as common stocks or any other ETF.

Take gold, for instance. You are no longer limited to gold bars, gold coins, gold shares or gold futures. To profit directly from the rise in gold, all you have to do is put some shares of a gold ETF in your regular stock brokerage account. Your commissions are minimal. And you completely avoid the hassles of most other gold investments.

Ditto for silver, crude oil, copper, and a host of commodities.

But there’s much more to this story than just a great, handy vehicle for participating in the gold market.

These new commodity ETFs are already triggering

a massive, worldwide shift of wealth

out of paper investments

and into things with real, tangible value!

We are now witnessing one of the greatest mass migrations in investment history. All over the globe, millions of investors are dumping paper assets.

And they’re buying things that, by definition, can never be worth zero: Oil, gold, silver, steel, wheat and dozens of other tangible assets.

Investors are moving out of mutual funds and into ETFs. As of November 2008, there was $487 billion in both ETFs and Exchange-Traded Notes (ETNs). ETFs have managed to experience net inflows, even in the market downturn. Just imagine how they’ll perform during a boom cycle.

Take gold, for instance: A single gold ETF StreetTracks Gold Trust now owns more gold than Japan or China.

Gold ETFs Are The 7th Largest Gold Depositories On The Planet!