| Join The Gold Band Wagon-We Are Going For $ 2000/oz. Sean Broderick A little history...what is common between the Spanish conquistadores move up-North from Peru and right upto California? What was the metal that made "Deadwood" a hauntingly poignant, mystical and yet brilliant Hollywood soap? What was it that forced so many also rans and poverty stricken prospect the deepest ravines of San Francisco for that proverbial pot of ....??? And finally, what metal shaped the Bay Area's prosperity? For all those who have forgotten-the singular difference between those who are rich and those who just dream stands-Gold Bullion. A metal considered "DeadWood" by Wall Street supremos, but a metal that has shaped the destiny of nations. It still does. Have you seen the Wall Street Journal's 3-part hit-piece on gold? I'd give you a link, but it's a waste of your time. It's the same baloney we always hear from Wall Street's white-shoe crowd. They hated gold at $500 ... $600 ... $800 ... $1,000 ... and now that the yellow metal is poised to take a run at my next target of $1,450 an ounce, they hate it even more! So why do the shadowy men in Washington and on Wall Street call gold a "barbarous relic?" That's because gold is TRUE wealth, and can't be twisted and defrauded by financial "engineers." The move in gold over the past 10 years is the shining financial truth that casts light on the lies told by Wall Street's fat-cats. And if you think the move in gold has been big over the past decade, just you wait. You ain't seen nothin' ... yet!
Recently, gold pulled back to consolidate its recent gains. But don't let that fool you. I think we're on the cusp of a new gold rush, one that could put the Klondike and Yukon to shame. This time, the riches of the gold rush won't be limited to the far-flung gold fields. This time, regular investors can participate right along with the big boys. Anyone who thinks gold prices aren't on the launch pad needs to wake up and smell the coffee. Sure, gold is already up 10% this year. But that's pocket change compared to the big move that I believe is coming. And it could happen so fast and furious that Wall Street's common-wisdom crowd — who have been predicting the decline of gold for years — will be left in the dust. Forces are lining up that could trigger parabolic moves in select gold stocks in the next 12 to 18 months. And these forces won't just affect the yellow metal. They will affect you, perhaps even totally change your life. The New Gold Rush isn't going to take place in a vacuum. It's taking place in the context of massive shifts in the global economy, a full-blown currency crisis in Europe, dwindling resources, and more. One or two of these forces would be enough to keep gold high and move it higher. Together, they're working together like booster rockets all firing at once. That's why the sky's the limit on gold. Millions of investors have no idea of what's bearing down on them. They are going to miss the boat entirely — and perhaps suffer because of it. But not you ... you can protect your portfolio, and position yourself to profit handsomely to boot. The New Gold Rush will push Gold to $2,000/oz and Beyond. If we're lucky, we'll see gold pull back before it really takes off. But any pullback in gold prices is short-term ... consider it a gift. It's an opportunity for you to buy these undervalued companies at bargain-basement prices. When the gold fever strikes, I believe investors will throw money at these stocks hand over fist. I'll give you plenty of details on the forces sparking the New Gold Rush. But here are some of the major reasons gold is going to continue to soar: Investors Are Dumping Paper You've probably heard of the financial crisis that is wreaking havoc in Europe. A debt crisis that started in Greece — a country that has lived beyond its means for years, and now has to pay the piper — has engulfed Europe. The problem is it isn't just Greece. The total debt of the so-called PIIGS nations (Portugal, Ireland, Italy, Greece and Spain) is a staggering $3.9 trillion. Total financing needs for the PIIGS over the course of the next three years is nearly $2 trillion. Result: Europe's common currency, the euro, is cratering ... stocks are slumping ... and European citizens are voting with their pocketbooks and rushing to exchange euros for a currency with real value — gold! The rush for gold is most visible in Germany, the economic heart of the euro zone and the richest country in the euro bloc. Germans are lining up to buy gold coins. As a result, the rand refinery in South Africa, which sells to many European gold dealers, often 2,000 gold krugerrands at a time, reported that it received a single order from one German bank for 30,000 coins. Another bank requested 15,000 coins. In just one week, production of South Africa's kruggerand gold coins soared by 50%!German investors are notoriously afraid of inflation. While few are old enough to remember the hyperinflation that wrecked Germany during the Weimar Republic in the 1920s, the episode remains etched into the national psyche. And as the euro crisis played out, archive film from the period ran on the TV news. And it's not just the Germans. Desperate Greeks are lining up to pay sky-high prices for black market gold coins. Now, consider what will happen if this same scenario starts playing out in Portugal, Spain — heck, maybe across Europe! That could send gold prices CATAPULTING higher. There Is a Tsunami of Trouble Headed Across The U.S. dollar has soared as the euro has swooned. Americans are feeling superior to those cheese-eating surrender monkeys in Europe and their crumbly currency. Well, prepare yourself for a shock. Greece has a current debt-to-GDP ratio of 115%. But the U.S. has a debt-to-GDP ratio that is an uncomfortably high 90%. America's official national debt recently passed $13 trillion. And that's just the official debt. Today we also have more unfunded contingent liabilities than ever and more than any country in history. Average investors know this is unsustainable! That's why investors scooped up 190,000 ounces of bullion American Gold Eagles out of U.S. Mint inventories in May. That's the fastest pace in over 10 years! Silver Eagles are selling even faster! Bullion American Silver Eagles scored their own record in May at 3,636,500 — the highest level since December 1986. How many silver eagles did the Mint sell a year earlier? Just 65,000 for the entire month of May, 2009. The surge in demand has just been enormous! Ordinary investors aren't buying gold and silver eagles just because they're pretty. They're frightened about the crash course the U.S. financial system seems to be on. And I think they're right. After all, after the biggest financial crisis in history, no one on Wall Street was punished. Instead, their friends in Washington bailed them out and sent them back to the roulette table with taxpayer money. That raises the stakes of another financial crisis happening sooner than many people believe possible! Supply Is Dwindling Supply from mines, which peaked in 2001, fell in five of the last eight years, data from London-based GFMS show.
As you can see from the chart, global gold production peaked in the year 2000, and the trend looks grim. While production is rising in China, former gold production kingpin South Africa has seen its production fall off a cliff — down 12.4% in the first quarter from a year earlier. The problem with any mineral in the ground is that once you remove it, it doesn't grow back. The fact is, the gold industry needs to replace almost 100 million ounces of reserves per year. This has not been happening. This means a supply/demand squeeze is building up — one that could result in an explosive move higher for gold! Gold had a great 2009. But that pales in comparison to what we should see next. And by acting now, you have the chance to protect yourself from geopolitical shifts that could reshape the world — and earn a king's ransom in profits! Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice. |
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