Herding is when many investors make the same choice based on observations of others, independent of their own knowledge. Markets do tend to have phases when one sentiment becomes dominant. These diversity breakdowns are consistent with booms (everyone acts bullish) and busts (everyone acts bearish).

To the best of my knowledge, there is no one barometer that accurately and consistently measures investor diversity. An objective assessment of public (media) and private opinion probably gives some good clues.

That's what Michael Mauboussin, Legg Mason's Chief Investment Strategist, wrote in his sure-to-be-investing-classic book, More Than You Know.

And it's probably the best explanation of what's going on in the markets today.

Now though, with the markets showing continued and exceptional strength, we have to wonder whether it's time to take profits or let our winners ride. To do that, we'll have to look at some of those "good clues"...

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The precious metals bull market is in full swing.

The gains in precious metals have been slow and solid. There are bouts of euphoric urgency and small corrections all along an upward trend. Those are the signs of a true bull market.

But I'm not here to regale you with the virtues of owning gold and silver and why you must have some gold and silver stocks in your portfolio. We've been over it before. Today you'll learn how to turn this bull market into an absolute fortune.

You see, there will be a very great divide between the winners and the big winners. When it comes to true wealth, you've got to find the big winners. And there's no better place to do it than in a genuine bull market.

Because when the bubble does come, you'll be in place for quadruple-digit gains. I'm talking about the kind of gains that can turn a few small, well-diversified investments into true financial freedom. There's nothing like it.

Normally, to make the big scores, you have to take big risks. Some traders take big swings on volatile options where they're going to lose 100% or walk away with 300% or more. That's ok, but there's a lot more to be made here. This is a bull market and eventual bubble where true fortunes will be made. There will be winners and legendary winners. The best part is, the stocks where you'll make the most money in this run are actually some of the safest to own.

Premium Valuations and Premium Returns

Not all gold stocks are created equal. There are three main groups. You have the majors, the mid-tiers, and the juniors.

The difference in profit-potential of each group comes from one of the oldest gold company valuation strategies Wall Street simply doesn't use, but pays off very well in markets like this. Here's how it works...

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Insiders are dumping shares at record pace.

So is it time to sell?

After all, no one knows a company better than insiders. They see the day-to-day operations, the sales figures, expenses, and everything else. They know their business better than anyone else. Their business is what they do every day.

So it makes sense to track when insiders are buying and selling their own shares. Buying is bullish and selling is bearish, right?

Well, it may be. But if we take a look at history, it's not as clear cut as many analysts make it out to be. More importantly, the insiders are teaching us one very important lesson that will go a long way to making you a more successful investor.

Insiders Rush for Exit

The recent rally has presented many investors the opportunity to take some money out of the markets. Insiders have jumped at the opportunity.

TrimTabs research has found that insiders unloaded $6.1 billion worth of stock in August. That's the highest rate of insider selling in 16 months.

More importantly, insiders haven't been buying much either. Trimbabs also found the ratio of insider selling relative to insider buying has surged to 30-to-1. That's the highest the ratio has hit in five years.

Charles Biderman, the CEO of Trimtabs, pointed out in the New York Times that, "You have a classic case of greed stampeding investors into believing that nirvana is at hand. We just don't see how the market's going to last."

But what does massive insider selling really tell us?

The Truth About Insider Buying and Selling...

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Six months ago, we had the opportunity to sit down with John Embry, the chief investment strategist at Sprott Asset Management. He is one of the world's leading gold experts.

That was March though and not too many investors were interested in buying anything. But Embry said to look past the short-term and focus on the big picture.

At the time, Embry predicted:

I think the major development is going to be ongoing issues of currency debasement. The value of paper money against real tangible assets is going to fall considerably. Right now, we are going through this deflationary scare. It won't last. It will change into a hyperinflationary environment in the not too distant future.

Since then, gold and silver have climbed 9% and 25% respectively. They've done well, but the big gains have been in gold and silver stocks, where Embry pointed us to last time. The Philly Gold and Silver Sector Index (XAU) has climbed 51% and many gold and silver stocks have done much better.

The prediction has proved nearly prophetic. So I've invited him back to learn what he expects to happen in the short- and long-term and the opportunities he is seeing now.

In our most recent conversation, Embry reveals:

- catalyst for an "explosion in the price of gold" over the next two months
 -assets for which "demand is exploding"
- China's "interesting problem"
- the sector where short-term sentiment is hiding a huge rally
- hidden impact of 10% official unemployment

That's just for starters. There's a lot more on silver, farmland, uranium, and plenty of other high-potential sectors.

Read on below for a full transcript of the exclusive conversation.

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It will come faster than most investors expect. Don't wait two years, John Embry, one of the world's leading gold investors, says it could happen in two months.

Learn why here

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