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Last November gold ended
up with the biggest monthly percentage gain in gold
futures since September of 1999! We have seen
nothing yet! In my opinion, this is just the
beginning and we could see gold prices rise well
above $1,500 an ounce by early next year.
From July up to now, a
combination of the rapidly rising U.S. dollar index,
vicious forced and panic selling of all asset
classes and massive deleveraging have helped to put
downward price pressure on gold and silver along
with other commodities. Very large funds and
investors that were faced with the need to raise
cash have been forced to sell anything liquid, even
that of which they wished they could hold like gold,
in order to meet redemptions, margin requirements,
and make up for the brutal losses elsewhere.
As financial terror once
again escalated through the week, fear of complete
financial collapse escalated on the price cave in of
Citigroup to just over $3.00! Attempts to explain
and fix the problem by idiot public officials,
including Treasury Secretary Henry Paulson, failed
to slow the massacre. In fact it only made it worse.
Our country is now nearing $11 Trillion in debt! The
problem is, since our country imports everything
from overseas and does not produce anything anymore,
we have no real way of paying back this debt. We
went from being the strongest credited nation to now
the biggest debted nation. Just recently, China
announced that they will be issuing a $586 Billion
stimulus plan of their own. Most likely China will
begin selling US Treasuries to fund this stimulus
plan since they don't have the ability to print the
money without being the world's reserve currency.
This is a huge problem since simultaneously the US
will be selling its own trillions of dollars in
treasuries for our own bailouts and stimulus. This
will result in the US printing trillions of dollars
out of thin air creating hyperinflation and a major
collapse in the dollar. While this financial
nightmare is unfolding we observed gold holding
steady in a tight consolidation range.
So the forces building
that will take gold through $1500 early next year
and likely much further are compounding with every
day that the global economy slides deeper and deeper
into depression. The US must continue to its
desperate efforts to saturate the economy with US
dollars while its value is high because when the
repatriation of those same dollars go on the
conclusion of the widespread and ongoing
deleveraging induced asset selling, the crash of the
dollar will begin and gold will prosper.
I believe gold is now
ready to become the biggest bubble Wall Street has
ever seen! The only reason why politicians and so
many of our leaders hate gold is because it prevents
governments from doing what they love to do best:
SPEND. It prevents governments from printing money
and politicians from buying citizens votes with the
printed money. As long as governments have the
ability to manipulate and control the money supply
via the printing press they will continue to inflate
their economies and deflate the purchasing power of
their currencies.
Once the unnatural
deleveraging and panic selling pressure becomes
exhausted, as analysts say it has to eventually,
gold looks set to EXPLODE! With that in mind, I want
everyone to realize that the time is NOW to move
heavily into gold before the rally begins! Trust me,
soon we are going to see a major breakout in the
price of gold and the investors that make a wise
decision now will be greatly rewarded in the long
term.
Even though gold
finished around $800 per ounce the average one ounce
gold coin on eBay is going for about $950! The only
reason why there is such a gap between these prices
is because of the forced liquidations by hedge
funds! This is a HUGE blessing in disguise and gives
us all a tremendous opportunity to still get into
gold before it corrects itself and matches up with
the real price being sold in the real world.
This will probably start
to happen in the very near future but in my opinion
the major rally above $1,500+ per ounce will not
occur until next year, because the Bush
administration will be in full gear trying to
salvage a good conclusion to 8 years of belligerent
management.
Gold is only 25% away
from the lifetime high of $1,030.80 struck in March.
In my opinion, gold could double many times over in
the next few years! In my opinion, gold will make us
all a fortune!
There a ton of great
gold companies right now that are trading for a
significant discount and will most likely become ten
baggers once the gold rally begins. I will be
announcing many new gold picks this week so please
make sure to look for my alerts. There isn't much
time left to get in these stocks while they're
trading at the current levels. Friday's breakout was
the beginning! Our 5 Star Stock DGP closed up 15% to
$15.71! Keep a very close eye on DGP as it makes its
way back above $20, in my opinion.
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