The stock market is a complicated place full of tricky jargon like “puts”, “calls”, “stop-losses” and “insider trading”. The first three terms won’t matter much to you if you are not invested in the market, or trying to figure out when to invest in gold, but the fourth term, insider trading, could be of paramount importance. The Founder and President of ITM Trading, Craig Griffin, wrote recently in a Market Update about a financial interview in which the subject of insider trading was quite interesting. Insider trading can be illegal, but oftentimes it either goes unnoticed, unreported, or un-prosecuted. Insider trading happens when someone who is privy to the actions and/or financials of a company use their “insider” knowledge for their own gain, or to limit their own losses. In the interview Mr. Griffin referenced, the major topic of interest was a particular type of insider trading, “insider selling”.

Insider Selling Is On The Rise And This May Be Signaling The Right Time To Buy Gold Coins

To quickly grasp insider selling imagine this scenario. You own a company that imports tulip bulbs from Holland. The company in Holland can produce only so many tulips each month because tulip bulbs have to be cultivated, they cannot be assembled on an assembly line, very much like gold cannot be created in a test tube. Your company marks up each tulip bulb, and then sells the bulbs to tulip loving individuals that live in a climate temperate enough for the tulip bulbs to grow into tulips. In essence, your company has a maximum number of bulbs it can buy, and a maximum number of clients that will buy the bulbs, so therefore your maximum amount of potential profit is capped, because even if you raise your prices and your per bulb profit, eventually your bulbs will become too expensive for your buyers and sales will drop off. For the sake of easy numbers, let’s say your maximum profit potential is $1 million a year for importing tulip bulbs. Now let’s say that investors come to you and want to buy into your business, and they want to give you $1 million a month to help you expand your business. (This is what happens when entities and individuals invest in companies blindly through the stock market just hoping that the stock will go up, without looking at the fundamentals of the business.) You accept the money, but you know that you can only get so many tulip bulbs, and you already have a buyer for each tulip bulb, so your earnings cannot really grow. However, because the investors keep sending you $1 million every month, and you put it into the company checking account, your business now is worth much more on paper balance sheets.

This Is Why Insider Selling Is So Dangerously Important And It May Be Time To Buy Gold Coins

Let’s say that after 1 year of this you now have $12 million of investor money in the checking account, but you have only been able to increase your sales by 5%, because there are simply only so many tulip bulbs and only so many tulip bulb buyers. You know that the investors will either want a better return, or they will want their money back. However, you certainly deserve something for your work, and your company has $12 million in the bank, so you decide to sell your company for $13 million, and offers pour in. You know that the company is not worth $13 million, and a year ago it was only worth $1 million, but you decide to sell and cash out. This is what is happening in the stock market right now. Those who work for overvalued companies are selling their stocks at record highs and cashing out. Craig Griffin has pointed out in his Market Updates that record amounts of investments are pouring into the markets, but the returns have only managed to go up 5%. When the stock bubble bursts, like it did in 2008, stocks may lose up to 50% of their value. Gold bullion coins and bars also lost value for a little while, and then nearly tripled in value. With insider selling at record levels, now may be the perfect time to buy gold coins.