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What’s
happened to gold? Is it still out there? You better believe it is
still out there and will continue to be “out there” and for a
very long, long, time. What are the banking gurus predicting for gold?
“Merrill
Lynch says that gold can lift another 50 per cent; Merrill Lunch suggests it
can go from about $US975 today to $US1500 in 12 to 15 months.”
theage.com.au/world/golds-promise-draws-dreamers-schemers-and-sceptics-20090221-8e84.html
Well,
looks that ol’ Dow Jones average is on its way down to 6,000. And
how much lower from there? We truly live in interesting times.
Consumer bankruptcy has jumped almost 30% in February from a year ago.
The Dow Jones is volatile and wanting to head lower. Fed Reserve
Chairman Ben Bernanke has warned Congress that the economy could be in the
dumps for years possibly because the financial system continues to
deteriorate.
"The
fortunes of the American economy have grown so alarming and the pace of the
decline so swift that economists are now straining to describe where events
are headed, dusting off a word that has not been indulged since the 1940s:
depression."
nytimes.com/2009/02/28/business/economy/28recession.html?_r=1
Home
sales are falling to new lows. Car sales are continuing to go down hill
driving many auto manufacturers close to bankruptcy. So many people are
out of work. Tons of homes are worth less than the existing mortgage.
Almost 700,000 jobs lost in February alone. Savers are trying to learn
to save money outside their 401K plan. Have to with 50% losses on most
401K portfolios.
"Gold
is not a safe haven against recession," said Hutchinson.
"It’s a safe haven against inflation." “But it
also reveals another wild card inflationary indicator that Hutchinson
believes carry gold prices to $1,500 an ounce by the end of 2009”
“…Hutchinson believes carry gold prices to $1,500 an ounce by the
end of 2009.” moneymorning.com/2009/02/16/2009-gold-outlook/”
US
senators are proposing an investigation to determine why the economy is
tanking. I feel comfortable already.
“Private
equity company Blackstone Group LP (BX.N) CEO Stephen Schwarzman said on
Tuesday that up to 45 percent of the world's wealth has been destroyed by the
global credit crisis.” "Between 40 and 45 percent of the world's
wealth has been destroyed in little less than a year and a half…”
"This is absolutely unprecedented in our Lifetime."
agonist.org/20090311/45_percent_of_worlds_wealth_destroyed_blackstone_ce
Maybe
Congress just needs to talk to the average American on the street. Are
we in a depression or a recession? How is a depression being defined
now? A depression is thought to be a recession that does not self
correct on its own created by an enormous trade deficit and banks going
bankrupt. Sounds like we are now in a depression to me. AIG is
continuing to plead for more billions.
“Renowned
investor George Soros said on Friday the world financial system has
effectively disintegrated, adding that there is yet no prospect of a
near-term resolution to the crisis.” “Soros said the turbulence
is actually more severe than during the Great Depression, comparing the
current situation to the demise of the Soviet Union.” "We
witnessed the collapse of the financial system," Soros said at a
Columbia University dinner. "It was placed on life support, and it's
still on life support. There's no sign that we are anywhere near a
bottom." "I don't remember any time, maybe even in the Great
Depression, when things went down quite so fast…”
boston.com/news/nation/articles/2009/02/21/soros_sees_no_bottom_for_
There’s
a global swing developing toward gold and gold exploration stocks. Gold
and silver mining stocks are priced at 400 dollar gold level. I have
not written a lot these past six months. The occurrence of last fall
left me in a state of shock I am still trying to absorb. Since 1997 I
had come to understand that these days of financial collapse were coming, but
still, when they financially come they still take you by shock.
It’s like knowing that death awaits us at some time down the road and
around the corner. Yet, the day that death comes we are still never
really prepared.
Jim
Rogers – “If gold goes down for whatever reason then I will buy
more.”
jimrogers-investments.
blogspot.com/2009/03/gold-and-silver-outlook.html
And I
can state with certainty that everyone around this vast globe has been
reeling in the after shocks of this financial earthquake. Who can ever
really be prepared for the death of a loved one? Even when we watch
that patient die a slow and horrible death in hospice. And so has gone
our economy. A slow and painful death to observe. Before we were
moving along in first gear so to speak for years on end. But then the
fall of 2008 came and our world shifted into over drive. And that is where
we are today.
We are
in over drive and with no working effective brakes to slow us down. I
believe that regardless of which political party may have come into office in
January, 2009, it would have been too late for any real meaningful policy to
come in to play that could have stopped this ongoing carnage. And rest
assured that this ongoing carnage has a very long way to go. Even today
the Chinese are voicing and making themselves heard world wide that they are
becoming more and more afraid to continue financing the great US debt
machine.
I
guess you know by now that Paul Harvey died just a short while ago? I
guess that confirms all by itself that we are now in a new terrible
era. Totally in an uncharted area without Paul Harvey to guide us.
“End
of An Era: Radio Pioneer Paul Harvey Dies at Age 90” “Paul
Harvey, once known as the most listened to man in radio, has died at the age
of 90 at a hospital near his winter home in Phoenix”. “From
his humble beginnings as a teenager helping out cleaning up at a local radio
station, Harvey went on to have his broadcasts carried by 1,350 commercial
radio stations, as well as 400 stations of the Armed Forces Radio
Service.”
mashget.com/top-stories/2009/02/28/end-of-an-era-radio-pioneer-paul-harvey-dies-at-age-90/
I grew
up on “Paul Harvey.” I used to race to the radio years ago
to hear Mr. Harvey state “Good morning America! It’s
Friday!” Well, now no more Fridays for Paul. Just
eternal gold streets and a golden microphone. Rush Limbaugh eat your
heart out! Where do we cry from here? And now I hear 75
year old James Dobson is stepping down from his place in the sun also.
As I said before, an entire generation is dying and a new one coming into
bloom. Of course that new generational era bloom will be in the prickly
shape of a Texas cactus. The prince of darkness has definitely arrived
in town. Not just in your town and mine, but the entire globe.
Sure,
a lot of that which has been lost may have been paper. But so
what? Its paper that we use as currency and pretend that it is real
wealth. Who is going to ride in now and save us? It sure will not
be either of our existing political parties. They created and fed this
crisis. Yes, the world we once knew is changing. Can’t go
back there. New rules and new problems. A new age. The new
age of the 21st century. And the sooner we grasp this important fact
the greater chance we will have to survive. And I am talking about
surviving financially, emotionally, and psychologically. Never do any
of us accept change well. We generally long for the nostalgia of
yesterday. Yet, it is so important often to let the past go and move
forward and accept the change that comes with it.
And
don’t forget the Chinese are getting closer and closer to the day when
they cease to continue to finance the US debt. That day should be
interesting. And as we have said before all of these events will
trigger an inflation rate we have not witnessed for a long time.
“The
Chinese are getting nervous about buying U.S. Treasurys.”
“…Chinese Premier Wen Jiabao, who expressed concern that the more
than $700 billion in Treasury debt his country holds is at risk of seeing its
value fall due to rising budget deficits here.” "We have lent a
massive amount of capital to the United States, and of course we are
concerned about the security of our assets," said
Wen…” "To speak truthfully, I do indeed have some
worries." money.cnn.com/2009/03/16/news/economy/fed_meeting/index.htm
There
really is nothing shocking happening today because many recognized these
existing trends even 20 years ago. The old blacksmith in 1909 had to
recognize that the new vehicle operating on the streets that required no
horse was going to change his business drastically. The innovative
blacksmith would have opened a car dealership to survive and even to prosper
with the changes the new automobile with the internal combustion engine was
bringing. There were only four registered automobiles in the United States in
1895. Horses were first offered as trade ins for the new automobile.
Ransom E. Olds was the first mass producer of gasoline powered automobiles.
“The
economic crisis and complete lack of competence from our leaders has resulted
in a current financial climate that will result in the most fantastic run the
price of gold has ever experienced.”
oxburyresearch.com/tag/gold-demand-2009/
The
following bit of trivia is interesting. In the beginning the automobile
suffered from a shortage of the availability of petroleum. The creator
of the first Cadillac became interested enough to procure a supply of
gasoline for his cars that he become a self-taught geologist and eventually
discovered major oil deposits in Kansas. I suppose what I am getting at
here is the necessity of looking at our world today and determining what new
innovative technologies are going to grow as the years progress. I
continue to be amazed that the Internet really came into its own in
1995. What, a mere 14 years ago? Change is happening all around
us and we have to accept it and grow with it.
Gold, accept no substitute. Live your dreams & unlock your
potential. And
don’t be left behind.
David Vaughn
Editor,
Gold Letter, Inc.
www.goldletterdv.com
All
articles by David Vaughn
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