The Gold Rush
Has Just Begun
Few people understood the real reasons why gold rocketed higher
over the past few weeks.
And even fewer understand why — despite the correction
— this
is just the beginning of gold’s historic
bull run.
In this issue of Golden Opportunities:
Why far higher gold prices are locked in...and six specific stocks
you need to buy right now to multiply those gains.
By Brien Lundin
“The
United States can pay any debt it has because
we can always print money
to do that,” former Fed Chairman Alan
Greenspan recently noted on Meet the Press.
Greenspan was referring, of course, to the stunning downgrade of U.S. sovereign debt by Standard & Poors, and the idea that the United States could ever default on its debts.
The
“Maestro”was right, of course. How
can you default when you can just print up more
money at will?
But
S&P was also right — albeit for the
wrong reasons.
I’ll
explain what I mean in a moment. But first, let’s
consider the stakes involved here:
You
might have noticed that S&P’s impudence
in downgrading the U.S. debt earned them harsh
criticism from the Obama administration and
its supporters.
It also earned them an investigation by the Obama Justice Department.
In
short, you’ve got to be very careful what
you say these days...or be willing to accept the
consequences.
So
what I’m about to reveal to you may send
some jack-booted thugs knocking on my front
door. But it’s too important for me to
stay quiet.
You
see, we’re facing a crucial period in our
nation’s history, a time when our wealth
and our way of life is at greater risk than at
any time since the Great Depression.
With just a few simple steps, you can not only protect yourself from the coming financial onslaught, but actually make a fortune from the events that unfold.
Do
nothing...ignore the facts I’m about to
deliver...and you’ll risk losing it all.
Now, let me tell you why...
S&P Was RIGHT
To Downgrade The U.S.
When Greenspan said the U.S. can always print whatever money it needed, it was one of the rare times this master of obfuscation actually said what he meant.
Here’s
what Greenspan knows better than most: The question
isn’t whether the U.S. can pay its debts...but
what the dollar will be worth when it does pay.
Consider that, despite the fact that the dollar remained fairly firm against other world currencies throughout the debt ceiling debacle and the S&P downgrade, the greenback slipped considerably in value against gold, its true barometer of value.
The
reason? Because investors and savers around
the world know that America’s mountain
of debt is absolutely unsustainable. And there
is no political will to make the fundamental
changes necessary to eliminate it.
Even
if there was, there’s no way to cut spending
or raise taxes enough to overcome the crushing
debt load. The only way out is the time-tested
avenue of inflation.
Make the dollar cheaper, and you also cheapen the value of the debt.
So,
even though Standard & Poors never mentioned
it in their analysis, the real reason to downgrade
U.S. debt is not because it won’t be paid
off...but rather that it will be paid off with
much cheaper dollars.
The Crisis Is World-Wide
The
dollar isn’t alone in its predicament. The
European debt crisis has been enough, all by itself,
to send the world scurrying for the safety of
gold.
Many are drawing parallels to 2008, where we also saw the effects of a massive credit crunch. But there are important differences this time around. And these differences harken back not as much to 2008 as to 1978.
For example, in 2008 we saw the dangerous potential for cascading bank failures leading to a failure of the global financial system and a slip into a depression. The banks had to be bailed out by a massive injection of liquidity into the monetary system.
Today, we see the potential for a more frightening scenario: the cascading failures of nations.
In 2008, the banks were bailed out. Today, nations are being bailed out. The difference is not only of kind, but also of degree. It will take much, much greater liquidity to bail out Italy, Spain, Portugal...and the U.S.
This
is why the spikes higher in gold during the 2008
crisis were also accompanied by sharp drops, as
margin calls in other assets forced speculators
to sell their gold for the cash needed to settle
up with the margin clerks.
Today,
gold isn’t a piggy bank to rob in times
of crisis; it’s the tool to provide safety
and profit during the turmoil.
Because,
as uncertain as today’s investing environment
may be, there is one long-term certainty:
It’s going to take a lot more money to bail
out nations today than it took to bail out banks
in 2008.
Thus,
the current situation may be more analogous to
1978. Two years into the Carter presidency, it
was patently obvious that the guy had no clue
as to how the real world worked, and his administration’s
Keynesian schemes to juice economic growth through
money-pumping were being exposed as futile and
ineffective.
Still,
while it’s obvious that the current administration
is equally ignorant of free-market operations
and their Keynesian experiments have also failed,
there are differences between today and 1978.
We
haven’t seen the price-inflation results
of this period’s monetary inflation, but
smart investors know the effects are coming. (They
also know that inflation is being measured by
a longer yardstick today.)
Thanks
to Jimmy Carter, investors today also know the
financial damage that can be done after two years
of an incompetent presidency is nothing compared
to what can be done in four years.
So,
today’s flight to the safety of gold is
not due so much to what is happening now, as
to fears of what will happen over the months
to come.
As readers of Gold Newsletter know, I believe the recent correction in gold was necessary, healthy...and temporary.
I
also firmly believe that we have at least 14 months
left in this gold bull market, or until around
the 2012 elections. If, however, Obama regains
the presidency and Democrats retain control of
the Senate, then all bets are off. The next four
years would be very bad for the fiscal health
of our nation, albeit very good for gold prices.
Instead
of Carter’s 1970s, the analogy would shift
to FDR’s 1930s.
In view of either scenario, I continue to recommend the steady accumulation of gold and silver. I advise you to do it on a dollar-cost-averaging basis, buying the same dollar amount each month, with an effort to concentrate your purchases during periodic price dips.
As prudent investors, we must consider the dangers of the latter scenario, wherein the Obama administration retains the White House and, in its last term, unleashes its collectivist tendencies without the restraint of an impending election.
Frankly,
I don’t see this scenario, and the worst
dangers it would entail, as being very likely
at this point. But it is still something that
smart investors will insure against by buying
their gold and silver in small denominations,
from a number of dealers, and keeping quiet about
it.
I
don’t think that gold confiscation is
a very likely danger in this day and age. But
I’m sure that citizens in 1933 didn’t
consider it very likely in their day and age
either.
Of
course, gold and silver mining/exploration stocks
didn’t benefit much from the recent big
spike in gold, because investors were buying for
safety, and not betting on returns. Thus, the
summertime “buying season” that seemed
to be ending has not only been extended, but the
sales have gone to the clearance rack.
Granted,
it takes courage to buy when blood is in the streets,
and there is likely going to be more blood shed
in the days to come. But this is where the big
profits are made. Gold Newsletter readers will
remember that I recommended Millrock Resources
at six cents a share in November 2008; it subsequently
traded for well over a dollar a share.
I expect similar profits to be created from the current crisis. However, I caution you against rushing into the market in pell-mell fashion; these are very volatile times, and we could still see a liquidity vacuum that leads to a sell-off in gold as well.
With that said, here are some of the most attractive bargains that I see right now, in alphabetical order:
•
Bankers Petroleum (BNK.TO; C$4.67).
We want to buy real value in this environment,
and Bankers has a huge dose of it in its Patos-Marinza
oilfield in Albania. We also want to buy the reality
that oil prices will not remain at current levels
over the long term.
•
Copper Fox Minerals (CUU.V; C$1.65).
Again, it’s a reality. As in one of the
world’s largest undeveloped copper-gold-moly
deposits. And it’s on sale.
•
Full Metal Minerals (FMM.V; C$0.39).
A world-class copper discovery now being drilled,
a top-level exploration team with an exceptional
property portfolio, and news on the way.
•
Inter-Citic Minerals (ICI.TO;
C$1.30). Millions of ounces of gold, in China,
with a $6.3 million exploration program underway.
It’s a value that must be recognized at
some point.
•
Kaminak Gold (KAM.V; C$4.20).
In an extraordinary example of unfortunate timing,
this company announced some outstanding drill
results from the Supremo T3 Zone on its Coffee
property in the Yukon on the very day that gold
dropped $100! So it didn’t trade upward
on the news...and is now trading at a considerable
discount to the levels I expect over the longer
term.
•
Millrock Resources (MRO.V; C$0.52).
Like 2008, another opportunity to pick up this
outstanding exploration outfit at a bargain level.
But the company is light years more advanced than
in 2008, with news on the way on some high-profile
drill programs.
The
stocks above have already been recommended in
Gold Newsletter and the Gold Newsletter Alert
Service, much to the benefit of those readers.
These companies are still outstanding opportunities,
however, and that is why I’m recommending
them now to our valued Golden Opportunities readers.
Your
Best Investment
Opportunity Of The Year
I fully expect the stocks above to be big winners as gold and the rest of the metals complex resumes their bull market run over the weeks and months ahead.
But
here’s something else that I know for sure:
In volatile times like these, the best investment
you can make is in your education...
...And
I’ve pulled out all the stops to bring you
the top picks and strategies of the world’s
most successful experts for this year’s
New Orleans Conference.
Take
a look at this:
• Our speaker roster is headed by Glenn
Beck...Dr. Charles Krauthammer...
Dr. Marc Faber…Dr. Stephen Leeb...Dennis Gartman...Peter
Schiff...Stephen Hayes…
P.J. O'Rourke…Stephen Moore...
Plus
Brent Cook...Adrian Day...John Kaiser...Rick
Rule...Bob Prechter…
Lawrence Roulston... Mark Skousen...Ross Beaty...Thom
Calandra...
Steven Hochberg...Frank Holmes...Ian McAvity...Mary
Anne and Pamela Aden...
Gene Arensberg...Mickey Fulp...Robert H. Meier...Bill
Murphy...Lindsay Hall…
Chris Powell...and many more.
•
In addition to all of our invaluable General Session
presentations, we’re featuring scintillating
panel presentations on the Economy, Global
Investing, Precious Metals and Mining
Stocks, plus an exciting new panel covering
the whole gamut of Energy opportunities
— including oil, gas, geothermal, solar and more.
•
You’ll also enjoy the return of our heralded
“ Summit On America's Future”
featuring Charles Krauthammer, Stephen Hayes,
and Stephen Moore.
•
You’ll appreciate captivating special events
like our rousing conservative/liberal/libertarian
debate between Charles Krauthammer, James
Carville and legendary humorist P.J.
O'Rourke! (And P.J. will also give us
one of his legendary presentations to end the
Conference, as part of our closing Gala.)
But
the most important benefit of the New Orleans
Conference is the chance to discover profit
opportunities you’ll find nowhere else.
The record clearly shows there’s no better
place...and no better time...to find the market’s
biggest winners.
Serious investors make fortunes from the picks delivered from our podium.
...And
yet you’re in danger of missing it all.
Don’t
Put Off
One Of The Richest Investment
Opportunities Of The Year
You
see, we haven’t heard from you yet about
whether or not you are coming to this year’s
New Orleans Conference.
This
year’s event is being held from October
26-29 (again, right before Halloween...and we’re
looking forward to the typical Mardi Gras-like
atmosphere here in New Orleans).
So...maybe
you have a conflict on those dates that you simply
can’t avoid. Or, if you’re like me,
you simply put off making travel plans until the
last possible moment.
If
that’s the case, I want you to know that
you shouldn’t put off your registration
a minute longer. With Glenn Beck headlining this
year’s roster...and with our big advertising
blitz about to hit...I expect a complete sell-out
again this year.
Unfortunately, your chance to attend may soon escape you entirely.
That’s
why I want to offer you a few special incentives
to register right now:
•
The lowest price available: Our registration
rates are scheduled to rise very soon. By registering
now, you’ll save up to $400 from our full
rate.
•
One of the most explosive investment opportunities
facing us right now is silver, and our exclusive
special report showing the best ways to profit
— Silver Bullet Strategy —
is one of the hottest pieces of market intelligence
in the market.
If
you register by September 15th, I’ll send
you a copy of this $49 special report absolutely
free. Not only that...
•
...I’ll send you a century-old U.S. silver
dollar! That’s right — I’ll rush you
a classic, Morgan silver dollar that’s over
100 years old. This isn’t some mass-produced
bullion coin, it’s one of the genuine collectibles
that you’ve probably seen advertised for
over $40 each.
Every
full registrant will get one of these historic
coins just for registering by September 15th!
Add
up just what I’ve detailed so far, and
you’ve got close to $500 in value just
for registering...right now...for an event that
could make you tens of thousands of dollars
in profits.
That’s
a very powerful argument for registering for New
Orleans 2011 now. But there’s more: You’ll
be able to reserve your room in our convenient
host hotel (this will almost assuredly sell out
soon)...
...You’ll
begin receiving hundreds of dollars-worth of exclusive
newsletters and special reports from our speakers...
...And
you’ll be able to upgrade to one of our
few remaining Gold Club memberships. Gold Club
status entitles you to a special private viewing
area with day-long refreshments, exclusive Q&A
sessions with speakers following their presentations
...special reports and investment information
conveniently loaded onto USB drives for your computer...
...Plus, this year every Gold Club member gets an individual photo with Glenn Beck!
Please
Let Us Know If You’re Coming...
As
a valued Golden Opportunities subscriber, I want
to do everything possible to allow you to benefit
from this year’s blockbuster New Orleans
Conference.
So please let us know if you can make it...or if we should release your spot to someone else.
You
can register immediately by CLICKING
HERE. Or, give us a call on our toll-free
line
(800-648-8411) to learn more, to register...or to get more information.
LEARN
MORE
About The
New Orleans 2011 Conference