Summary:

• Axel Merk, head of Merk Investments returns to the show - he thinks the Fed should balk on next week's proposed rate hike.
• Instead, policymakers will likely engineer a ZIRP exit strategy.
• By reducing volatility / exposure to zero, the Fed "put" has lulled investors into a false sense of security, forcing savings into risky assets.
• The resulting complacency is costly and could increase risk along with volatility in the coming weeks / months as investors adjust expectations.
• Our guest outlines a robust, portfolio diversification-strategy.
• From a contrarian stance, gold offers a solid alternative to over priced equities. Merk Investments created a gold ETF with the benefit of delivery.
• Investors can request delivery of American Gold Eagles to their doorsteps in one week, regardless of market volatility (OUNZ).

• George uses technical analysis to determine a floor for the gold price between $800 and $1000, in similar fashion as the Alpha Stocks Newsletter.
• He notes the bearish signal in his technical work and the bullish global demand.
• One explanation offered by industry experts involves shorting by the PPT to orchestrate a positive economic environment.
• It is essential to recognize the prevailing market bias, which remains downward.
• At stockcharts.com (XAU) on the weekly chart set to 2001-2004, the XAU, gold and silver consolidated for years before beginning a meaningful advance.
• There's no need to fear missing the next big trend; instead waiting for the bias to shift to upward and dollar cost averaging is advisable
• Bob in Texas is concerned by the threat of domestic bank bail-ins and exposure to derivatives such as MBS, CDO, etc.
• Few if any institutions are completely shielded from toxic derivatives.
• Once the next credit crisis begins in earnest many investors will be exposed to financial weapons of mass destruction.
• By diversifying wealth outside of financial institutions, not all eggs are held in one basket; PMs and James Turk’s Gold money offer solid alternatives.

• The Silver Investor David Morgan and the host review and article penned by David Smith.
• With silver production waning, demand could overwhelm supply.
• According to his work the bottom may already be in place in the PMs market.
• The following scenario could occur: silver gaps higher several dollars - silver eagles / maple leafs sell out over night - premiums on pre-'65 silver triple.
• Major silver suppliers are reporting big premiums in pre-'65 silver, over $4.00 per ounce, a startling high figure.
• Bull markets oftentimes require a base building period - David Morgan thinks that could be currently underway.
• But even if the bottom is not in place, the precious metals remain the diversification tool, du jour for every investment portfolio.
• David suggests watching the preparedness film, The Empty ATM.

Show Host