Posted November 13, 2010 at 10:07 pm
by Barry Goss:
No slowing down… as it’s just kicking into medium gear.
The “mania” phase — where most U.S. investors, who have grown up not understanding the concept of “real money,” begin being enthusiastic about it — hasn’t even started yet.
But, institutional investors — the “smart money” — are taking it in at a rapid pace, preparing their coffers for its inevitable climb to $1,600/ounce, then $2,000/ounce… and beyond.
Our prediction? Yes.
Anybody else predicting that? Yes, of course.
When will it happen? Nobody knows!
My bet? Sooner than later.
Why? We’re in an economic reality where major shifts in spending habits have just left the starting gate. People are getting liquid, deleveraging, and saving like no time before. At the same time, the up-tick in mass-awareness of the devaluation of paper/fiat currencies is taking hold.
The recent rally of the U.S. stock market, starting in September, is driven off hollow air — simply nothing more than a response to Ben Bernanke devaluing the U.S. dollar.
And, with rising unemployment and poverty, entitlement dependence (e.g., 41 million U.S. citizens are on food stamps), increasing political corruption, declining civil rights, and out of control ‘money’ creation, is there any wonder why ‘tangibles’ of all kinds, including natural resources, real estate, land, and precious metals, is where money is headed?
As Bill Bonner succinctly points out:
“People only change their spending and investing habits — in a positive way — when they believe they have real, permanent wealth, not when they anticipate a speculative increase in share prices, driven by hot money.”
In our latest ‘Wealth Vault’ member update (posted yesterday), we gave members a more elaborate take on the state of the GOLD market, where we see it going, and more importantly, a very little-known way to conveniently buy physical gold without taking delivery of it. The bullion is stored in what many consider to be the most secure vaults in the world.
And, each share you purchase in this investment vehicle represents 1/10th of an ounce of physical spot gold. So, it’s a great way for the “little guy” to participate in the ongoing bull market that, again, isn’t slowing down.
Yesterday, it was selling for $1,387/oz after a run of nine years, seven months and ten days.
Put another way, the price is up 442%, or about 19.3% compounded (returns on the returns). Over this same time frame, the S&P 500 has returned 7.5%. And U.S. home prices have gained less than 30%, according to the S&P/Case-Shiller home price index.
We feel this is just the beginning. Either way (even if there will be a short-term correction that lasts several weeks), do you really want to be left holding the bag, without any in it?
When you become a paid WV member, you can immediately access our latest update, which tells you the approach we’d take for buying now, even at these current prices.
As Brad pointed out yesterday via the Nov 12th member update:
“For most people, the thought of investing in farmland is the furthest thing from their mind, and even more so if it happens to be outside their country of residence. But farmland is one of those tangible assets that’ll continue to hold its value no matter what happens.
“After all, unlike paper currency (which can be printed into oblivion), there’s only a finite quantity of farmland available in the world. This is one of the main reasons experts are predicting that agriculture is going to be one of the greatest industries in the next 20 to 30 years.
“Thankfully, you don’t have to wait that long to be able to enjoy the many benefits investing in farmland can provide, because in our latest report, you’ll learn about three ways you can profit from farmland as an investor, in one of the most ideal places in the world.”
For more information…. [ login or become a member ]