Tax & Financial Consulting Services
Dear G&G Reader,
Welcome back to the battlefield...It turns out that 2008 was the third-worst year for
equities on record, with the broad market indices shedding an average of
about 36%. And 2009 isn't shaping up to be any better, as analysts report
this to be the single worst beginning of any year in stock market
Two more American banks were quietly shuttered over the past weekend, and Royal
Bank of Scotland's London Shares are down a whopping 66% on news of a
potential GB£28 billion US $38 billion write-down.
Amid this climate of escalating uncertainty, the wealthy are reaching for
anything of real, tangible value. And that means "GOLD."
Merrill Lynch recently reported that some of its wealthier clients are
turning to gold bars for peace of mind during the global financial crisis.
The former investment bank believes that gold will rocket to US$1,150 an
ounce by June as the long-term effects of our crisis become increasingly
But wait a second; didn't gold suffer alongside oil and silver last year?
In a deflationary environment, aren't real assets - like gold - supposed
to decrease in value? Fortunately for gold bugs, it's not quite that
Gold Shone Brightly in 2008
It would downright shock most investors to learn that gold actually
appreciated in 2008.
That's right, in an environment where literally everything plummeted,
gold's spot prices actually increased. And it becomes only more
attractive when you combine its relatively neutral performance with the
fundamental forces at work suppressing gold prices in the last year.
2008 could likely go down as the year of "forced liquidation." As everyone
from banks and investment houses to hedge funds and private investors were
forced to de-leverage, reduce debt exposure and sell off assets, prices
were driven rapidly downward. Gold was one of the main victims of this
period of forced liquidation.
Since spreads on gold remained relatively tight - despite breakdowns in
the credit markets - and the market was highly liquid, gold was one of the
first assets to be dumped by institutional investors in the de-leveraging
process. Unlike, say, the market for subprime mortgage backed securities,
one could recover at least majority of their initial investment by
liquidating their holdings in the gold market.
This situation - combined with the wholesale dumping of commodity
"buckets" - helped to keep gold prices low and suppress increased demand
by creating an overwhelming supply. But it won't go on forever. And as
uncertainty about the markets increases, so does the demand for GOLD.
Another factor currently driving up demand for gold is a little more
obvious; the policy reactions of governments and central banks. The world
joined hands, and instead of buying each other a coke they decided to
flood the markets with free "fiat -aka- fake" money.
From the UK and the IMF all the way to China, governments are cranking up
the printing presses in an effort to soften the otherwise hard landing of
the world financial system (and automakers, and student lenders,
money-market funds, etc) and the economy at large.
And regardless of short-term market forces, these policy decisions will
eventually have a significant impact on the global economy at large. The
piper will be paid for the trillions in stimulus and bailouts now flying
out of the world's governments and central banks, and investors know this.
That's why many are banking on now as the turning point where gold begins
to shine irrefutably.
For more details on how to start purchasing physical Gold & Silver coins at 25-35% off the US Mints published price right away, click the link below or goto G&G Associates website and click on the "Precious Metals" tab to start purchasing "REAL" money now instead of paper promises backed by nothing.
The Market can't Serve Two Masters...For Long
"Why can't the markets make up their collective minds? It's like they're
torn between two lovers. On the one hand, the market believes that the
U.S. will rebound from all this and be stronger for if it.
"Then on the other hand, we just keep building up debt. And soon the Fed
will begin their quantitative easing, which means more and more debt and
dollars, and that just spells bad times for the dollar."
"So, I'm just looking for some direction, and hoping the market
participants and traders finally get over their first lover, and realize
the only lover for them is the second one."
"And finally, now that risk takers are back (for today at least) gold has
pushed in the last few days, adding US$21 to its price.."
"Gold is a store of wealth folks. Look how well gold has held its value,
while the dollar has continued to lose its purchasing power for years!"
Since Nixon removed the last vestiges of gold convertibility in '71,
the dollar has lost over "95%" of its purchasing power! And gold? Why,
I'm glad you asked...has increased in value more than 300%.
What are you waiting for? All the money in your bank account to be worthless?
Get smart, you should have 20-30# of your portfolio invested in Gold & Silver
with at least half if not more than that in real hard metal you can touch and
feel for a rainy or better yet a crisis day.
Read quote below!
Tax & Financial Consultant, RFC
866-361-3872 toll free fax
"What we learn from history is that people don't learn from history."
LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. Also, please note that due to our commercial relationship with Publc Gold, G&G Associates may receive compensation from a membership purchased at www.publicgold.com/gngpreciousmetals.