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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I had not felt more confident about a market move in months...

The market trend was down. There was no good news coming from anywhere. There weren't even any "better than expected" bits to look positively on.

There was nothing good - nothing at all. And I was excited about the opportunity to make a killing as the markets continued to slide.

I was so confident I even published this chart for which showed how the last four Fed or government intervention-induced rallies never lasted long. And then went on about how there's no reason to expect the fifth to be any different:

Needless to say, I was quite proud of myself.

Of course, that was March 11th, the first day of one of the greatest rallies of the past century.

We've all watched how Mr. Market works. A pattern is established (i.e. Fed-fueled rallies don't last). It lets you think you know what's going on. Then it switches everything up on you. And now, with bearish sentiment soaring, we can put Mr. Market to work for us once again. Here's how...

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Stop the Market Insanity

That's what a CNN headline demanded over the weekend.

On the surface, the call certainly seems justified. Just take a look at what's going on in the markets. In August three of the top performing stocks had to be a shock for anyone who can read a balance sheet. Shares of AIG soared 290% outpacing spectacular runs of Fannie Mae and Freddie Mac 250% and 270% respectively.

The last month it seemed the worse the company, the better the shares did. These companies are on the hook for hundreds of billions of dollars in bailout money. They're essentially worthless, but the market didn't seem to care.

But if we take a step back, we can see how one person's "insanity" actually makes a lot of sense. All of the recent market action does make sense if you look at what's going on in the markets. More importantly, the run in these "garbage stocks" signals a very, very big opportunity is just around the corner...

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