-- Posted Friday, 18 April 2008 | Digg This Article
| Source: GoldSeek.com
As I look in the newspaper I see a lot of interesting predictions. Some analysts are predicting 6% unemployment by the end of the year. Microsoft is desperately trying to buy Yahoo. Offering 41 billion for a company whose major asset is the Internet.
“Microsoft has made an unsolicited $44.6 billion bid for Yahoo.” Techcrunch.com
And everyone seems to be forgetting China and the whole of Asia and her 1.2 billion people. China also is expanding its presence in Latin America and Central America. While the US struggles with inflation and to pay its national debt China and India just continue to grow and expand. China basically is entering a new age that will only see higher growth and more productivity.
“The economy is slowing across the nation, the home-building sector is tanking more than even the pessimists could have imagined a few months ago and prices keep rising at an uncomfortably high rate.” “Those are the unpleasant conclusions of several government reports released yesterday that, together, offer a picture of a U.S. economy being squeezed from all directions.” Global Insight
The immigrants continue to grow in population around us. Two classes, those south of the border and those from Asia. We hear complaints mostly about southern immigrants who really are no threat to US employment as they do the work the average American refuses to do. The Asians coming over here do threaten American jobs as they take the high paying jobs that the typical American trains four to six years for. And I could go on and on.
David: “…Trying to catch bottoms and tops is a speculators game....I got a letter recently from a South Carolina multi-millionaire and he thanked me for clueing him in on the need to own some gold in the coming financial crisis which is just beginning to be evident to the masses, the vast majority of whom simply cannot grasp that this time it will be worse than the 1930's. My millionaire friend told me he had bought some physical gold and wished he had paid more attention when I was all but begging him to do so when it was much less....” Sincerely, RP
What is really relevant is for all of us to continue to keep our eyes on the US dollar. And no, it has not bottomed out. Far from it. I believe just the interest on the US national debt accounts for a third of budgetary spending expenses.
“Gold prices could climb to US$1200 by early 2009” “Gold prices could move sideways in the near term and may not make much of a move in the next two quarters, but they should turn upward after that, according to Martin Murenbeeld, chief economist at DundeeWealth Economics.” “These projections may be considered somewhat bearish by some readers, but we assure them that the medium and long-term outlook remains quite bullish indeed…” “Meanwhile, the large amounts of liquidity entering the financial system and pressure on other commodities should ensure that gold rises significantly higher, he predicted, adding that the supply argument for gold is becoming even stronger as mine output has not looked like it will rise before 2010 or so for quite some time.”
Financial Post, 4-7-2008
The price of gold in the short term will move in extremes in every direction but gold will be overall strong for the rest of this decade and beyond. It’s not too late to invest in gold related equities to take advantage of their wealth generating attributes. We are living in the last days of cheap resources and cheap commodities. Gold Letter, Inc. reviews undervalued gold stocks poised to rise in this time of increasing demand.
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Don’t forget to email.
David Vaughn
Gold Letter, Inc.
David4054@charter.net
4-18-2008
The publisher and its affiliates, officers, directors and owner may actively trade in investments discussed in this newsletter. They may have positions in the securities recommended and may increase or decrease such positions without notice. The publisher is not a registered investment advisor. Subscribers should not view this publication as offering personalized legal, tax, accounting or investment-related advice. The news and editorial viewpoints, and other information on the investments discussed herein are obtained from sources deemed reliable, but their accuracy is not guaranteed. © Copyright 2008, Gold Letter Inc.
-- Posted Friday, 18 April 2008 | Digg This Article | Source: GoldSeek.com
