-- Posted Wednesday, 28 September 2005 | Digg This Article
Well, has anyone noticed this past month gold strengthening & radically moving ahead into a new higher trading range?
If you haven’t been paying attention you better begin to do so now if you truly desire to be one of the participants who are going to make tremendous sums of money as gold stocks eventually climb higher. Hurricane Katrina & other events have kept me occupied these past 30 days and my hands have been full dealing with personal family crises affected by climactic upheavals.
But it is the very nature of these unanticipated & unplanned events that have moved up significantly the time clock & calendar for the coming gold price explosion.
Everything we & others have predicted for our economy is now happening. And, indeed, with Hurricane Katrina & other major upheavals, our world is moving 1,000 times faster to meeting the coming predicted economic tsunami. If anyone has been asleep & oblivious during these past 30 days then you are deserving of any missed financial opportunities you will eventually experience.
“If this gold bull is the real deal for its own fundamental reasons and not merely a dollar bear, then vast fortunes will be won before it fully runs its course. Prior to this summer, American contrarian investors were the largest group of folks who believed in it. With new bull-to-date highs in all major currencies though, now foreign contrarian investors are taking notice. Gradually they are moving capital into gold and driving it higher.” “The single most-important determinant of the gold price is global investment demand. When investors get interested in gold and even deploy tiny fractions of their portfolios into it, supply just won’t keep up with the new marginal demand. And gold, like most investments, even sports an inverted demand curve. The higher its price goes the more investors want it so a feedback loop manifests driving it higher and higher. There is no rush like a gold rush!” Adam Hamilton, 9-23-2005 http://www.freebuck.com/articles/zeal/050923zeal.htm
Even the housing bubble is beginning to deflate & to reach a turning point. Are these mere words we are sprouting or is the evidence there to back these assertions up? Should we be paying closer attention now to the evening news? The following bit of analysis is from an individual who is highly respected in financial circles & very much worth listening to.
“…home construction fell for the second month [in] a row and permits for new buildings also declined in August. The National Association of Home Builders’ index for sales of new, single family homes fell in September indicating a decline in sentiment among US home builders. Freddie Mac also reported that 30-year fixed mortgage rates are on the rise again and the supply of new houses for sale is increasing, in other words the houses are not selling as fast as builders anticipated. At the same time the median price for a new home fell in July.” Paul van Eeden, 9-23-2005
And is the U.S. Federal Reserve Board paying attention to present economic events?
“I suspect that the Federal Reserve Board Governors know they have a problem. Could it be that they are worried about something much larger than the devastation caused by Katrina, the impact of higher gasoline prices on consumer spending or a slowdown in real estate spending due to higher interest rates?” Paul van Eeden, 9-23-2005
Have you noticed how everyone seems to be wearing now these electronic phone things sticking out of their head?
I am sitting at a booth at Port City Java, an Internet coffee café, and this fellow across the floor has this flashing thing sticking in his ear. Reminds me of the Star Wars movie where the heroes land on Cloud City and the town administrator comes walking out with this flashing electronic thing attached to his head.
I come to this place to work but it seems most folks are coming to these places to order these weird coffee concoctions that are made up 90% of sugar & cream. Just give me a normal cup of coffee please.
And I’ll be totally honest with you here. When the cell phone phenomena went into full stream I told myself I would never lug that blasted stupid thing on my belt, but I do now. But I am definitely drawing the line to ever wearing one of these electronic plastic things that flashes on the side of my head.
Oh, I went to the gas station Saturday and filled the tank up & nearly passed out – right under 50 bucks! Couldn’t believe it! But anyway, let’s get back to the very real discussion of where gold is heading – including how your personal finances will benefit IF you are positioned & actively preparing for gold’s rise.
“$500 gold -- get used to it again, Consensus clearly bullish for the long TERM” Tomi Kilgore, MarketWatch, 9-23-2005
Did we just read a conservative prediction that gold will be bullish for the long term?
“Despite some concerns that the near-term upward path might be a bit bumpy and the reluctance by analysts to make projections on how high the price could eventually go, the consensus is clear -- be it for fundamental or technical reasons -- this is just the beginning of a long-term bull market.” Tomi Kilgore, MarketWatch, 9-23-2005
As you read this analysis try and keep in mind that these predictions are not mad ravings coming from demented gold bugs. These folks predicting gold’s upward rise are conservative market analysts who have zero bias regardless of the direction gold is headed.
“Prudential technical analyst Ralph Acampora said gold's spike up to 17-year highs should not deter investors from buying. His reading of the price charts suggests a target of $507 per ounce in the near term.” "Most of the technical indicators suggest that despite an accelerated trend in price, gold is not overbought," Acampora said. "Hence, any hesitation is deemed a buying opportunity." Tomi Kilgore, MarketWatch, 9-23-2005
And more?
“Getting above $500 may be a short-term goal, but Acampora envisions the price rising even further in the long term, as gold continues on an upward path it has followed upward for the last four years.” “But over the long term, Bergtheil thinks the price will move steadily higher because gold's drivers are now a lot more secular and a lot less cyclical.” "We now expect gold to breach $500 during 2006 and to hold these new higher levels through the balance of the decade," Bergtheil added.” Tomi Kilgore, MarketWatch, 9-23-2005
Let’s stop here and go back and rehash what we just read above as it is EXTREMELY important.
"We now expect gold to breach $500 during 2006 and to hold these new higher levels through the balance of the decade,"
Are you catching the significance of what we are reading here, because if you are not then you are going to miss out on an opportunity to make a lot of money? Again, let’s re-read this important data.
“…and to hold these new higher levels through the balance of the decade,"
The thrust here and point to digest is that gold is not merely experiencing a short term spike here but a LONG term generational price explosion. Higher gold prices are going to be around for the rest of this decade. Now if you can really grasp the true significance of this fact & prediction by market analysts you can begin to understand why it is so very, very important to begin studying NOW, & with a vengeance, this gold market.
The point here in a nut shell is that if you want to profit from these developing long term price trends for gold then you better be making a concerted effort to learn this market & to begin investing in publications that will enable you to direct you where to place your investments.
“Citigroup analyst John Hill is also bullish for fundamental reasons.” "We expect gold to work its way higher and fully expect a test of $500 per ounce in the coming months," Hill said. "We believe supply and demand builds a base for the next round of macro-/monetary and investment catalysts to enter the market at high price levels." Tomi Kilgore, MarketWatch, 9-23-2005
And lets hear what other prominent & highly respected analysts have to say about the coming gold price explosion.
“…a whole generation of investors grew up thinking of it (gold) as an investment "dog" as well as a monetary anachronism. Largely due to the strong growth of the U.S. economy and the years of low interest rates have spawned a complacent mentality among most Americans; they expect continuous prosperity.” By Doug Casey for The Daily Reckoning, 9-26-2005
And where does the venerable Mr. Casey believe gold is heading in the midst of these events?
“When the housing bubble bursts, though, I suspect things will begin to change. Stocks, bonds, and the depreciating dollar won't provide a refuge. The herd is going to head into commodities in general, and gold in particular. Gold is, after all, the crisis commodity - and, as explained in last month's edition of this newsletter, I am more convinced than ever that we're heading for a financial crisis that's going to dwarf what we saw in the '30s.” By Doug Casey for The Daily Reckoning, 9-26-2005
I like Doug Casey & I think it very important to read again what this man is predicting.
“…I am more convinced than ever that we're heading for a financial crisis that's going to dwarf what we saw in the '30s.”
The following is from an interesting fellow who seems to be loved by all. And I think Richard prepares an excellent case for why gold should definitely be a major & significant component of your portfolio if merely for purposes of insurance.
“…the Required Reserves in the banks abruptly fell to $42.4 billion, even though their Loans/Leases book increased by $25 billion to $5,312 billion. According to these figures, the Reserve Ratio is, and hold onto your hats, now a measly 0.08%! The standard, textbook example ratio is 10%! And here they are at less than 1%! They have no cushion against losses of any kind! Wow! What guts! What nerve! What stupidity!” By Richard Daughty, 9-21-2005
And now lets hear Richard’s comments on inflation & you can take this info to the bank in considering why gold is such a very important inflation hedge.
“The sad truth is inflation will destroy whatever little bit of money that you set aside, as it is currently destroying the little bit of money that you have been setting aside, especially for the last five years. The sad, sad truth is that you will need to save, at least, one day's pay for one day's retirement. In other words, you must save 100% of your income if you want to have enough money to offset the roaring inflation that we are going to have over the next decades! Hahahaha!” By Richard Daughty, 9-21-2005
Digest what you just read really well & you will begin to understand why those 100% & higher gold stock returns are so very, very important to your financial survival in the coming years.
“And the practical result of inflation means that each dollar buys less, which means (if value remains constant) that oil will go up, and gold will go up, and silver will go up, and all things that you buy with dollars will go up in price.” By Richard Daughty, 9-21-2005
Read the following closing remarks by Richard Daughty & reconsider where your personal position is on gold.
“*****The Mogambo Sez: Gold is, if you have been reading the newspapers, on a tear, as more people than just you and I recognize that only precious metals can save us now.” By Richard Daughty, 9-21-2005
Looking at the end of the day gold chart for Monday, 9-26-2005, it is obvious to me gold is wanting to climb above 470 & yet, interest in gold is still very subdued. Gold Letter provides subscribers a review of those gold & silver companies that are poised to rise appreciably & dramatically as gold climbs to over 500 dollars an ounce & higher.
Order toll free 1(888) 836-7758 Or over the Internet: click here
http://www.goldletterdv.com/
David N. Vaughn
Gold Letter, Inc.
David4054@charter.net
Gold Letter Website
September 30, 2005
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-- Posted Wednesday, 28 September 2005 | Digg This Article
