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Good
morning Americans! It’s Friday! Or close to it…
Presently
there are about 5 billion ounces of gold floating around out there some
where. More and more investors are adding gold to their portfolios as
insurance. Gold has become the 3rd largest asset held by world central
bankers. And many families are adding gold to their personal portfolios as
they come to discover that all is not right in Alice in Financial Land.
Charts,
charts, charts. Ever notice how so many writers use charts, charts,
charts? And more charts. I’ve often wondered if this is just an easier
way to make an article longer without actually saying more. Charts, charts,
charts, charts. I want to hear verbal dialogue. But then. That’s just
me. Most charts don’t mean anything anyway. Because the next month
the charts will be going in the opposite direction. I’m doing the
same! Filling the air with charts.
In
the decade between 2000 and 2010 we witnessed gold climbing from a low of
around 255 an ounce. For the next decade, 2010-2020, where is gold heading?
At this point I am not even concerned if gold continues the wild climb it
experienced last decade. The important theme I see as we march into these
next 10 years is that gold will maintain a degree of stability and will no
longer drift with the winds. Sure, there will be fluctuation,
oscillations, up and down, that’s normal.
Patrick
J. Buchanan, 12-29-2009 “No nation in modern history, save
for the late Soviet Union, has seen so precipitous a decline in relative
power in a single decade.” “At the end of the first
decade of the 21st century, the question is not whether we will preside over
the creation of a New World Order, but whether America's decline is
irreversible.”
But
what is more important is that as time progresses forward gold is no longer
questioned and considered a worthless asset. There is speculation that the
world may create a new currency. If this comes to pass it more than
likely would solely encompass Europe and the United States. I don’t
believe the Chinese and about 2 or 3 other world regions will join the band
wagon.
The
seeds of future wars are beginning to take root. The United States, Canada,
Denmark, Norway, Russia, and even China are considering how to divide up the
resource rich Arctic. As the Arctic ice continues to melt China will acquire
an ice free Arctic expanse.
So,
if each region wishes the other competing regions to recognize their currency
there will have to be a common denominator between each region’s
currencies that has real worth that will be respected by other world
regions. US paper is going to continue to lose its value dramatically in
the next few years. It’s inevitable. Too much growing debt that will
never be able to be repaid.
I
won’t be surprised if gold does climb higher, but it is no longer necessary
now. It has won respect where it is and that respect will only grow as the
world’s standard of living decreases. We had a snow blizzard in the
Carolinas just recently. Paralyzed the entire infrastructure. At least 2
inches must have descended from the sky. Will the south ever recover?
Our
great nation is beginning to show its age and its grey hairs are getting
greyer by the day. This great financial wear and tear will just continue on
and on until it hits another brick wall. Our golden era is behind us. Unless
you are part of the super rich. Their wealth grows, but not the wealth of the
average upper middle class Americans.
Have
you noticed how so many with pride have claimed that we are now a service
oriented country and no longer a country that produces anything…via
factories? An entire nation turning from a manufacturing state to a
service state. How sweet. Let’s be sure we understand what a
service economy is. More greeters at Wal-Mart, more McDonald’s
hamburger technicians. Service naturally means to serve others. So now we are
becoming servants to the wealthy foreign investors increasing their
colonization on American soil.
Hear
about the recent 8.8 earthquake that hit Chile? A NASA scientist said
that the earthquake may have changed the entire Earth’s rotation.
What? And scientists say this earthquake may even have shortened the
length of days on earth. This quake was reported as the 7th strongest
earthquake in recorded history. According to research scientist Richard
Gross, at NASA's Jet Propulsion Laboratory, Pasadena, California, the length
of an earth day may now be shortened by 1.26 milliseconds. I noticed the sun
went down earlier today. Did you notice the same thing?
Even
more exciting is the fact that the earthquake shifted the earth’s axis.
Maybe by as much as 3 inches. I noticed this also as I fell out of the tub
that morning as I was reaching for the soap. The following below is a good
one.
Well!
A new report out says the United States mess is even worse than it
seems. Imagine that? It seems like those ole’ deficits just
may rise close to 10 trillion bucks by 2020… the end of this decade.
Yes, the folks in office say they are now a little more pessimistic about the
state of the US economy. And why is that? I thought all these folks had
to do was speed up those hard working printing presses. And they think
the economy may be slowing down? Interest rates may rise? Private
spending may slow down within the economy? So what? We have all those
good ole’ service jobs. We know that as we retire Wal-Mart will happily
employ us as a greeter at the front door.
For
the fist time in history public sector jobs pay more on average than private
sector jobs. Around 60 grand average working for the government and for
working in a US private factory the average pay is around 50,000. And those
US government public service employees are also more heavily unionized than
those in private sector jobs. Now who is the master and who is the
servant? I think that’s obvious.
The
common tax payer working a white collar job or working in a sewer is now the
slave of the US government. And there’s this little fact that our
standard of living just might be a little less by the end of this decade. By
the year end I think it is being estimated that the US budget may hit around
1.5 trillion US. Real wealth always follows production of real goods produced
in factories.
Continuing
massive job losses indicate the so called “economic recovery”
proclaimed by Washington remains a farce. Americans just may never see life
return to the fair-haired days of pre 2000. So far 20 US banks have failed in
2010. Don’t know why these banks don’t start printing their own
money. The Fed does.
Jim
Sinclair continues to predict a climbing gold price as high as $1650 and
above. And Jim continues to believe and warn that the US dollar is becoming
more and more worthless? Jim, this is America. Bad things don’t happen
here….I don’t think. Jim, are we really in uncharted seas
as you say? Is international financial turmoil really just around the corner?
Jim is so worried and paranoid he probably locks his front door every night.
Just
kidding about Jim. Jim Sinclair is the gold market guru.
Jim
Sinclair, February 2010 - “By default or design we are going to a
one-world currency and a one-world central bank of central banks.”
“There are presently 3 major currencies. That is the US dollar, the
euro and gold.” “The probability of moving towards a one
world currency in stages over the next 5 years is a reality.”
“Reduce all your currency positions into strength. Buy gold in all its
forms other than US or Euro based in weakness. Gold will trade at $1650 and
above. The US dollar continues its march in phases towards worth-less and
worthlessness.” Respectfully, Jim
Continue
to keep your head clear when considering precious metals companies to
speculate in. John Doody and Doug Casey are probably the 2 most reputable and
knowledgeable in the precious metals field. Subscribe to their publications.
Sure, they’re not cheap. But nothing ever worth while is free.
Remember
that physical gold represents insurance you apply when the house burns down.
Precious metals, gold and mining stocks are strictly speculation. So keep
your pants on when speculating in gold stocks. But sleep well as you consider
your physical gold buried in the back yard.
Barron’s
recently included an article predicting gold may yet climb 1,300 an
ounce. I say leave gold where it is. Anything over 400 sure looks better
than the day’s when gold hovered around 250 an ounce. George Soros, via
Soros Fund Management, is rumored to be buying gold.
David Vaughn
Editor,
Gold Letter, Inc.
www.goldletterdv.com
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