| Fellow Investor: U.S. Mint Suspends Gold Coin Production I could hardly believe the headline when I read it, but it's true. After a little checking around I found the official release from the U.S. Mint: "...Because of unprecedented demand for American Eagle Gold and Silver Bullion Coins, the United States Mint suspended production of 2009 proof and uncirculated version of these coins..."And they're continuing this suspension even now, this many months later. | American Eagle Gold Proof: the coin you're not allowed to buy. | Let me get this straight, with demand ticking up they choose to stop production? In any private or publicly-held company the reverse happens: greater demand warrants increased production. So what gives? It's simple, it's the government version of contango, where a commodities holder (in this case, the U.S. Mint with gold) has determined that the far future price of that commodity will be greater than the near future or spot price and therefore refuses to sell. The U.S. Mint has determined that by hoarding the gold they already have now at the low prices they've already paid they can increase profit margins later by suspending production until gold reaches the $1,500 range most analysts believe is coming before year's end. So if the U.S. Mint is willing to defer profits today for greater profits tomorrow, then you know gold's going up. Now you can tap into skyrocketing gold prices with my new report, Gold Rush 2010: 3 Top Gold Stocks for Gold Over +$1,000. Click here to find out how to get your copy before it's too late... | | I don't like it any more than you. The U.S. dollar is collapsing and massive inflation is likely right around the corner. Investors are flocking to the one investment that can withstand financial calamity and actually rise in value... Of course, I'm talking about gold. Gold shot up from $880 to over $1,200 after the market bottom. Most experts are calling for $1,500 gold later this year. In the good times, investors laugh at the very thought of investing in gold. But when the going gets tough, gold always shines. And investors come flocking. Click here for a free investment research report on how to profit from gold's historic rise. When the Dollar Falls, Gold Flourishes Used as money for more than 3,500 years, gold is the ultimate "store of value." Better than stocks, more stable than T-bills and a better sure-money bet than annuities, gold will hold its value -- no matter what happens. With the dollar's disastrous future all but assured, investors simply must act to protect their wealth. And you have the opportunity to make significant profits as they push gold prices toward all-time highs. Don't think for one second that gold has run its course. $1,000 an ounce isn't some magical line in the sand -- the biggest gains are still to come as the dollar continues to fall. And once the U.S. economy starts growing again, we'll have hyper-inflation to look forward to... In inflation-adjusted terms, today's gold prices don't hold a candle to what they were in 1980. When the Soviets attacked Afghanistan, prices rose to $875 an ounce. Today, that same ounce would be worth $2,200. Clearly, gold is still undervalued. And even if the price tops $1,500 next month, it won't be near its potential inflation-based price. There's a lot of money still on the table... I firmly believe that gold's seemingly unencumbered price-raising rampage will propel the yellow metal to new highs. It's just a matter of time. I don't even consider myself a gold bug, but we'd be crazy to ignore the incredible profits that await during this once-in-a-lifetime opportunity. The Biggest Gains are Coming Soon The start of this gold bull market began in 1999. As Jim Rogers, author of Hot Commodities writes, "The shortest bull market for commodities lasted 15 years, the longest 23 years, so if history is any guide, they've got a long way to go. This is not a bubble." The uptick in gold is barely 10 years old. So we should see at least six more years of this party -- maybe more -- with some savvy investors making a boatload of cash. And you can be one of those investors. The bottom line is this: the problems plaguing the United States the same ones that propel the price of gold are far from over. If you can read the writing on the wall, you'll prosper as gold prices rise. In my new gold stock research report, Gold Rush 2010: 3 Gold Top Stocks for Gold +$1,000, I'm recommending three undervalued gold mining stocks. They're each fully leveraged to the price of gold, which means their profits -- and stock prices -- can grow exponentially as the price of gold runs higher. Click here for your free copy right now. Before going into detail about these stocks and the opportunities they present (and telling you how to get your copy of the report right now), I want to delve a little deeper into what makes gold tick, why it will continue ticking, how history provides a gauge for the future, and where your entry points for profitable investing lie... Falling Dollar Equals Rising Gold Prices As the U.S. dollar weakens, the price of gold strengthens. When the dollar fell in 1982 and 1983, the price of gold rose from $294 an ounce to $514 an ounce in just nine months an increase of 74%. It happened again from 1985 to 1987, when a drop in the dollar propelled the price of gold from $282 to $502 over 21 months an increase of 78%. But our currency is in even more trouble now. The Fed has agreed to pump $15 trillion dollars into the U.S. economy. That's a staggering amount of money. And we don't have it. So the Treasury is selling Treasury bonds like there's no tomorrow to borrow the money. Those bond sales -- and the fact that Fed "came to the rescue" and cut interest rates to all-time lows -- puts relentless pressure on the value of the U.S. dollar. "Suddenly, the world is realizing that gold is still a safe haven asset. We've seen pretty substantial losses in equity markets. I think this is genuine safe-haven buying." -- James Moore, theBullionDesk | As the dollar enters its next down phase, the United States could easily suffer a flight of capital. Not only will you see each dollar buy less, but, more importantly, there could be less demand for dollars, as foreign investors slash the flow of dollars from Asia, Europe, and the Middle East... or our biggest debtors start to pull their money from U.S. Treasuries. Just imagine if China stopped buying Treasury bills tomorrow -- the U.S. economy would collapse. And twice now President Obama has had to assuage the concerns of the Chinese that they're "loans" to us might be in peril. There should be no doubt that tough times lie ahead for the dollar. Click here for your copy of the new report.
Even if China Keeps Buying T-Bills, Inflation is Coming and Gold will Thrive Like the dollar, inflation and the price of gold are highly correlated. Since the end of World War II, the five steepest years of U.S. inflation were 1946, 1974, 1975, 1979 and 1980, not counting the current economic downturn. During those five years, the average real return on stocks, as measured by the Dow, was -12.33%; the average real return on gold was 130.4%. Which sounds better to you? During the 1970s, gold soared to 23 times its value and a $50,000 investment would have made you a millionaire almost overnight. Historically, gold has served as a hedge not only against inflation, but also against deflation. For example, in the slump following the "Wall Street Crash," from September 1929 to April 1932, the Dow Jones Industrial Index slid 85%, to 56 from 382. Some 4,000 U.S. banks closed their doors. Millions lost their jobs and income. Meanwhile, the price of gold actually went up. How Individual Investors Can Capture Profits from Gold When you think of gold investments, what comes to mind? A vault packed with stacks of gold bars, rare coins neatly arranged in a collector's binder for passing from generation-to-generation, or the ever-popular "gold you can fold" certificates that eliminate the need for storage? These most direct ways to own gold have been around for a long time. It's a guarantee that your investment is 100% correlated to the price of gold, so there are no impurities to mettle with your profits. Many people still opt for buying physical gold in one of the above forms, but frankly, that's a mistake. The way to make the biggest profit from rising gold prices is to own the companies that actually pull the metal out of the ground. Gold mining stocks and the investors who own them will be the biggest winners... All of these companies have proven gold reserves, and are minimally hedged, which means they expect to make a lot of money as gold prices head higher. Click here for your FREE copy of my new report, "Gold Rush 2010: 3 Top Gold Stocks for Gold +$1,000". Start Profiting from the Gold Bull Market Request my Report Now So, it's easy to see why there's so much upside for gold prices right now... You've seen gold break the $1,000 mark and stay above it. You've seen it race on past $1,100 and even break $1,200. And it's going to keep going and keep making rewarding investors... Now's your chance to get detailed reports and comprehensive analysis on all three top gold-mining stocks set to deliver exponential gains to savvy investors in Gold Rush 2010: 3 Top Gold Stocks for Gold + $1,000. Click here for your free copy. Happy investing, Ian Wyatt Founder of Wyatt Investment Research P.S. We've seen gold go from a recent bottom of $720 in November 2008 to over $1,200 one year later. It's going higher. If you think you missed the run, forget it. You've got plenty more action coming. Get your hands on the free new gold research report right now. There's nothing to buy and no obligation on your part. Click here. Copyright © 2010 Business Financial Publishing Wyatt Investment Research c/o Business Financial Publishing, LLC 380 Hurricane Lane Williston, VT 05495 | |