-- Posted Thursday, 23 September 2010 | Digg This Article
| | Source: GoldSeek.com
Banks are failing across the country at a growing rate.
Actually, the truth is that the US banking system is close to collapsing. And what’s happening with gold? Gold recently struck an all time high as it climbed to a record 1,278 dollars!
Investors, and just those with plain common sense, are buying more and more gold helping to send the price of gold ever higher! As never before everyone and his or her brother is recognizing that gold is the appropriate investment as the world crumbles around us. Also, gold will be the best investment when government eventually induces inflation and only gold will outpace inflation enormously. You sure will not want to have your savings in dollars as those days are almost here.
INFLATION ON THE RISE!
“Prices are accelerating at an almost unprecedented rate and savers with money in the bank must be alert to the dangers.” if [inflation] …continues to climb, will have a massive effect on everyone. The definition of inflation is an upward trend in prices that is fuelled by an expansion in either demand or money supply. The latest official figures make worrying reading for both savers and spenders alike.” “…this means long term investments need to be earning a return that is substantially higher than inflation, or the value of your money will decrease.” "Inflation erodes your investment.” "Inflationary trends have increased sharply…” "Prudent savers are being left out in the cold and are finding it nearly impossible to combat the effects of tax and inflation.” “…this is not the time to be apathetic…” “…it is more important than ever for savers to proactively seek the best returns possible.” “Another area you might consider is physical gold. Andrew Merricks, head of investments at Brighton-based Skerritt Consultants, explains: "Gold is seen as a hedge against future inflation…”
independent.co.uk/money/spend-save/fighting-rising-inflation-is-essential-for-savers-1985936.html
How do you like the recovery so far this year, 2010? Funny, I haven’t seen it either. Most economic and financial reports are continuing to show a deteriorating economy. It’s always a shame that no one is willing to pass any legislation to encourage American companies not to relocate over seas. The economy is like a balloon with a slow leak that continues to let out air at a consistent rate.
The fall of 2008 was dramatic, but not everyone could tell that fall 2008 was the beginning of the end. Consumers gradually are beginning to recognize things are really falling apart all around us. But losing ones job and watching your house crumble in value generally awakens even the sleeping sluggard.
Today, the best employer is the government outpacing private sector wages and benefits. How bad? 70k including benefits for private sector jobs. And government jobs? Including benefits just around 130,000 dollars. Yes, that’s hard to digest. China slowly is questioning their long term practice to be the primary banker for the US. Actually, the greater US population is becoming more worried about their own battles to keep up with the bills and to survive. Personal survival is today a greater concern than making money. Their 401K plans are worthless and the equity in their homes is now long gone.
FEDERAL GOVERNMENT JOBS FAR OUTPACE PRIVATE SECTOR
Recent Statistics suggest the federal government is becoming an increasingly more attractive place to work than the private sector. Federal jobs outpay their private sector counterparts 83 percent of the time, according to information from the Bureau of Labor Statistics.” “According to federal data, a cook on the federal payroll will make roughly $15,000 more than one in the private sector. A public relations manager working for the U.S. government will out-earn his or her private sector counterpart by an average of more than $44,000.” “According to the Bureau of Economic Analysis, average health, pension and other benefits tally up to $40,785 per federal worker -- compared with just $9,882 per private worker.”
foxnews.com/politics/2010/04/05/federal-government-jobs-far-outpace-private-sector-counterparts-pay-benefits/
Again, the only option that the government will have left to get out of all of this debt will be to devalue the dollar and allowing inflation to thrive. People are not buying and housing is getting weaker by the day. There are close to 1,000 banks on life support and probably half of these banks will fail.
JIM CRAMER BELIEVES HIGHER INFLATION & HIGHER GOLD AHEAD
“He thinks inflation will come and will go up…” The net investment in gold rose five-fold…” “Central banks have increased gold holdings…” “An explanation of gold picks follows. “… is Cramer’s top stock with exposure, although Cramer said that this one is only about 20% exposed to gold.” “…has some of the lowest costs in the business and is up 87% since he first recommended it. He thinks it has upside still as their production costs are about $100 per ounce compared to its competitors and it has production growth (expected 96% this year)…” “…he likes the basket of junior miners called the Market Vectors Junior Gold Miners…”
247wallst.com/2010/01/08/jim-cramers-gold-stocks-for-2010-gld-fcx-ego-gdxj/
The truth is that in any financial catastrophe there is always a great transfer of wealth to a small minority. Wish we could all be part of that infinitesimal minority. Are we entering a new age where the principles of finance, personal rights and government control are a tightening noose around our neck? And that noose is getting tighter and tighter. Anyway, for the common middle class the noose is getting tighter. But don’t worry. Because the middle class is disappearing. Between 1990 to 2000, we lived in an artificial goldilocks’ economy. Between 2000 and 2010 we began to see cracks in the prosperity myth. A new age is descending upon us. Whether good or bad its here now.
The life that we witnessed in the 70s, 80s and our parents experienced in the 50s and 60s is gone forever unfortunately. That age is but a chapter for future history books. The visible faces we observe on our TV screens each evening are merely the misguided puppets of this new reality.
Gold was around 251 dollars an ounce during the reign of the bubble gum age when all was colorful and wealth eternally bounced higher. But since those days we have witnessed the gold barometer climb to over 500%. If this does not represent a shift in consumer confidence, I don’t know what does. The investment world, central banks, and other financial bigwigs around the world have definitely changed their outlook concerning gold.
2,000 PLUS GOLD PRICE AHEAD!
“…gold price eventually to climb HIGHER than 2,000 an ounce.” “Gold Will Continue to Climb, Christopher Barker June 23, 2010.” “In my estimation, we remain so substantially removed from any ultimate top in the gold price as to render bubble declarations repeatedly, predictably, and grossly premature.” ‘For my part, I continue [to] track the fundamental drivers that I believe portend a continuation of this long-term trend beyond my personal target of $2,000 per ounce.” “Central banks continue to reshape the very structure of the gold market by actively amassing gold reserves. Like China before it, Saudi Arabia became the latest nation last week to reveal effectively clandestine purchases of gold by "restating" its hoard by 125% from 143 tonnes to 323 tonnes. This increase is nearly as large as India's 200-tonne purchase of gold last October that helped spark another major breakout in gold prices. Alongside purchases by Russia, the Philippines, and others, sovereign purchases have emerged as a powerful force in the surprisingly small-scale global market for physical gold.”
fool.com/investing/general/2010/06/23/why-gold-will-continue-to-climb.aspx
Of course, the question now is how high will gold eventually climb? Don’t know that one. But I can say with certainty that the higher the gold price climbs then the weaker our economy will become. And our standard of living is for certain plummeting. It is a definite fact that overall spending habits have changed dramatically since the big crash of 2008. The enormous economic stimulus has only gone into the hands of the already wealthy banks and financial institutions. And they are not letting that money out of their hands. And they are holding onto this money as insurance for what lies ahead.
The number of foreclosures continues to ascend ever higher. The official government rate of unemployment is around 10%. There are other private studies that have calculated unemployment at 25%. Take your pick. Either number is bad. Why is the ownership of gold encouraged during times of financial uncertainty? Physical gold is insurance. You don’t sell it until the need really arrives. And trust me. That time will come. Gold is and forever will be a form of insurance when our paper economic world collapses.
Jim Cramer is losing confidence and is encouraging his listeners to start buying gold. In the past few years, almost 11 million jobs were lost in the US. Clearly, the way to prosperity in the future will be to get a government job. That’s an interesting thought. All employment will be in the government sector. So what about private jobs in the private sector? There won’t be any. The last American job will transfer to Asia. And then I don’t know whom the US government is going to tax. Nobody will be left to tax. It’s funny how liberal politicians never seem to understand this simple fact.
JIM CRAMER PREDICTS BEST GOLD & SILVER MINING STOCKS
“Jim Cramer continued on his theme stock picks for 2010 on CNBC’s MAD MONEY tonight.” “Tonight Cramer’s picks were around gold in his “going for the gold” theme for 2010. “Cramer said gold was up 24% last year and thinks it has not finished going higher.” “His picks tonight for the shiny yellow stuff are the…, and then in miners he likes… and…” “Cramer even addressed the new small-cap Market Vectors Junior Gold Miners… for exposure. A brief explanation of each and his more general reasoning is below.” ”CCramer thinks gold is better than holding bonds…”
247wallst.com/2010/01/08/jim-cramers-gold-stocks-for-2010-gld-fcx-ego-gdxj/
Too many large banks, financial institutions, including the automobile industry have been infused with money that can never be paid back. It’s difficult to even imagine the fantastic new debt created just since the beginning of the past couple of years. Anyone even know how all this debt is going to be paid for? A tremendous increase in inflation eventually will be upon us to minimize the total sum of all this piled up debt. Maybe if each one of us could kick in a spare million bucks from our back pocket we could get all this debt knocked out. Do you carry a loose million bucks in your back pocket? You’re right. We only dream about that pile of dough.
The common majority of investors still do not follow the gold market. But they will…eventually. The US economy is facing an ugly reality. A 1930s style Depression now encircles our borders. Between 1929 thru 1933 there were false signs leading the people to believe occasionally that recovery was just around the corner. And today the sun may take a brief peek from behind the dark clouds. Only to just as rapidly sprint back behind the dark sky. A little euphoria here and there while the ship sinks deeper into the depths of the sea.
So if physical gold is held as insurance where is there left to make an excellent return on your money? Individual gold mining stocks can go to the moon in an environment like we are in today. Remember, own physical gold for insurance and own gold or silver mining stocks for speculation. Also, don’t be too cheap to purchase a few gold newsletters. There are some excellent analysts who really know the gold market well and have made their subscribers a lot of money. Doug Casey and John Doodey are considered by many to be the best precious metals experts.
With the continued rise in the creation of paper money via every new stimulus plan, don’t think for a moment this will not add big time to inflation. Gold historically does quite well in an inflationary environment. It rises very quickly and outpaces every other asset and investment.
MINING STOCKS CLIMBING TO THE STARS
“I continue to advocate consideration of mining shares as a profitable means to invest in the bull market. Although I am most enthusiastic about pick, and also the new…attractive options abound in the gold space as well. …possesses superior growth potential for a large-scale miner, while…continues to reside deep in value territory for a mid-level, low-cost producer. As this bull market matures, however, this Fool is focusing increasingly upon more junior members of the mining universe to tap greater room for growth. “… has consistently earned this Fool's praise, and…is busy growing into a large pair of golden slippers.
fool.com/investing/general/2010/06/23/why-gold-will-continue-to-climb.aspx
One thing to always look for in a mining stock is to see if a feasibility study has been done. A feasibility study will show drilling results and cover a multitude of other facts important in assessing the company’s long term viability.
FREE! Lifetime Subscription: CLIMBING GOLD & SILVER STOCKS (Limited Time Only)
David Vaughn
Gold Letter, Inc.
David4054@charter.net
9-21-2010
Gold Letter, Inc. The material presented is based on information and sources believed to be reliable but its accuracy or completeness cannot be guaranteed. Gold Letter, Inc accepts or assumes no liability for the foregoing material. There can be no assurances of the company reaching sales forecasts or projections as outlined in this report. Gold Letter, Inc. has relied on management for information and data presented in this report and has not verified its accuracy. The analysis contained herein does not purport to be a complete study of the featured company and any views expressed are as of the date hereof and are subject to change without notice. This report is for information only and entertainment purposes and is not intended as an offer or solicitation with respect to the purchase or sale of any security, nor should any information or opinions expressed in this report be construed as investment advice. Companies mentioned herein may carry a high investment risk; and readers should carefully review the companies thoroughly with their registered investment advisor or registered stockbroker. 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… gold letter, Inc…
-- Posted Thursday, 23 September 2010 | Digg This Article | Source: GoldSeek.com
