This is
G&G Associates
Tax & Financial Consulting Services
e-Newsletter
Dear G&G Reader,
On February 10, 2009 I predicted that witin the next three months Gold would go above $1000 an ounce. I stand corrected, it only took two weeks. This past Friday Gold pushed above $1000 and watch out folks. It's going to take off even higher to highs of my new prediction of $1500 an ounce. Ouch to those who don't own any and have all there money tied up in stocks and bonds.
Now, in case you haven't noticed… Something "Big" is going on in the gold market. World governments are starting to lose their grip on banking system and currencies.
During times like this, “Gold Bugs” keep a close watch on their wealth…but history shows governments keep even closer tabs on their yellow metal.
Why?
The answer is simple. They don’t like competition.
Fiat (Paper) Money vs. Gold
Pull a dollar bill out of your wallet and you’ll notice the phrase, “This note is legal tender for all debts, public and private.”
This simple 11-word sentence has massive power behind it.
It forces buyers and sellers to transact in dollars. (Just try paying with anything else at the grocery store – and see what happens.)
In effect, governments – through the aid of central banks – have a monopoly on... monopoly money. And they said Madolf and Stanfod had a Ponzi scheme. Isn't that the pot calling the kettle black,
But this fiat (paper) wealth is not a very good store of wealth at all. Since World War II, the dollar has lost about 90% of its value.
People Aren't Stupid (I hope)...
When faced with plummeting spending power, intelligent people who are able to act (in time) grasp after something of tangible value. In a worst case scenario that might be canned soup. But most of the time, it's hard currencies, like gold and silver.
Now there are two types of gold buyers. People like me – who constantly build a stash. (It's almost like an act of breathing.)
Then there's the general public. They're the last to know what's going on.
They are panic buyers and panic sellers.
And whenever they move – as a herd – immense wealth is created for those who, "beat them to the punch."
Right now we're approaching one of those moments.
But There's a Catch…And It’s A Big One!
Remember – like I said – hard currencies are "competition" for paper money. It's the last thing the government wants – especially in times of economic distress.
What does this mean?
Governments can and will act to defend their currencies.
There are two types of "defenses" they resort to: Inflation and outright confiscation.
You know the inflation story well – it's the constant value-drip that erodes your purchasing power and allows government to expand its power.
But you may not know – outright confiscation is an all-too-real threat.
As History Repeats Itself…As It Is Today…Will Gold Confiscation Happen "Again?"
Very few people alive can remember the great "gold grab" of 1933.
That's when President Franklin Roosevelt declared gold ownership to be illegal. Once he forced enough Americans to turn over their gold – in exchange for paper money – he revalued the price of the yellow metal from $20.67 to $35 an ounce. This is what happened with the so called "Bank Holiday." See link below to read FDR's speech.
www.gngassoc.com/pdf/FDR_Speech_Bank_Holiday.pdf
What a rip-off!
That meant everyone was left – in the heart of the Depression, mind you – holding dollars that were worth a fraction of their former value.
Now, back then, most people didn't hold gold coins. They held dollars that were "gold certificates." They looked a lot like today's greenbacks – except they were redeemable in gold – on demand. See link below for what these certificates looked like.
www.gngassoc.com/pdf/History_Of_US_Money.pdf
Why would Roosevelt want to put a stop to this?
Simple. The government had issued far more of these gold certificates than there was gold to disperse. They painted themselves into a corner and were stuck! Can anyone say Stimulus package!
So they did the only thing they could do – they simply voided the "gold contract" that was printed on the dollar (and every other gold contract – public or private). Problem solved.
But In Doing So, The Feds Created A Massive Headache For Investors...
All of a sudden their gold certificates were worth a fraction of their former value. They had been duped! Paper gold was not gold after all. It was subject to government manipulation.
What does this have to do with 2009?
Well – once again, millions of investors have put their faith in paper gold. They've bought e-gold...mint certificates...and plenty of gold mining stocks.
Some of these investments have done remarkably well. And I wouldn't advise anyone to sell all their "paper gold" holdings.
But I strongly advise investors to hold certain types of physical gold. In times of real crisis, nothing can provide more solid financial protection …
And there's one type of physical gold that trumps them all - Numismatic (collectible coins)
The Ghost of 1933 Returns!
During the Great Depression, only one type of gold investment was exempted from confiscation.
And by confiscation – I don't mean, "Pretty please hand over your gold."
Those who failed to turn over their metal could be fined $10,000 and imprisoned for ten years!
Given the choice between their gold and the pokey – millions of Americans parted with their gold...
Bullion bars were taken away... Double Eagle coins were turned over to authorities.
It was madness!
Could It Happen Again? Well…Unfortunately, yes...it could.
We're in the middle of the worst recession since 1981-82. (Some might even
call this environment a “soft depression” as banks are largely bankrupt.)
If the global financial system remains in tatters, gold could come under
attack.
Should the government's ongoing "stabilization efforts" fail, it would not surprise me to see gold top $1,500...$2,000-an-ounce or more. And at that point, we would likely see some sort of concerted government action to freeze gold prices or even confiscate gold outright.
One thing is for sure – the Fed and its central bank buddies don’t want to see gold at these levels. Their actions could have a disastrous effect on gold exchange-traded-funds, gold stocks...even gold coins.
That's why I'm highly encouraging you to buy physical Gold & Silver coings...NOW!
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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. You can purchase as little as 1 coin at a time to as much as you can afford. Start today...stop waiting.
http://www.publicgold.com/gngpreciousmetals
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For those of you who have their money tied up in your company's 401K, Thrift Savings Plans (TSP) for those government employees: whatever you do, "DON'T" put any more money into those accounts. It just doesn't make any since to keep throwing your hard earned money down the drain. Keep that money and start getting those investments I mentioned above.
For those who say, but I get a tax break or my employer is matching what I put in to my retirement? Well, to reference the employer matching excuse, what's 6% of 0? You got that right...0. And for the tax breaks, 'please' I could easily show you how to save that same amount of money or more by getting your self a business and taking advantage of the 422 tax deductions allotted for business owners.
For more details on how to keep 30-45% of your paycheck, listen to the audio on my website titled "Job vs. Business" and you can instantly turn around your financial situation.
Read quote below!
Thanks,
Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
877-817-6031 toll-free
866-361-3872 toll free fax
www.gngassociates.net
"What we learn from history is that people don't learn from history."
Warren Buffet
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.
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