My Anthem

Wednesday, September 23, 2009

Ah that precious metal Au...

I often TEAsed my new readers here that I offer the traditionalwelcome drink of tehtarik, in goblets of Ag, Au or Pt. GOLD to traditionalists, especially Asan mothers, is the commodity to hold to hedge against bad times.

Is the current period a bad time? If Yes, then you may have to read thie following article from Steve Sjuggerud's "Daily Wealth" which regularly comes into my Inbox. I normally don't pay them nomind, but I do make an exception occasinally.

Any action you take following this article's reading is yours and yours alone. If you win with a bet, buy me a TT.

If you lose, that's your own call, Desi's sharing here is jest that, worth its weight in words...words....WORDS. and as one of my fave Oz bands sings, join the Bee Gees,in chorus:

"And Words are all I have To take your heart away..."


September 19, 2009



Editor's note: My friend David Galland is one of the most plugged-in guys in the world when it comes to gold and natural resource investment. So when he comments on something related to the industry, I always pay close attention. In today's issue, we share David's take on a huge trend in the gold market right now. Read on to learn...

Could China Push Gold to the Moon?
By David Galland, Managing Director, Casey Research

Inside sources have recently confirmed the Chinese government is actively promoting gold and silver investment to the masses.

Some analysts now contend that China can no longer afford to let the gold or silver price slump.

The rationale behind that contention is that with the Chinese government now telling the general populace to buy precious metals, it would be highly problematic should gold and silver subsequently take a nose dive.

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In many cases, what a government wants and what ultimately occurs can be wildly different, due to unintended consequences rarely foreseen by officialdom, and because once the masses get it into their heads to break one way or another, government's desires are largely ignored.

"You shall not smoke marijuana," says the government. "Roll me another," says John Q. Public.

But in the case of gold, interestingly enough, the Chinese government has the means at its disposal to actually do something about prices. Namely, at $1,000 an ounce, the total value of all the gold ever mined comes to about $5 trillion.

Of that amount, less than $1 trillion is held in official reserves, the rest under mattresses, in jewelry and family heirlooms, and in various ETFs – GLD being the biggest, by far, holding about $34 billion worth of gold.

Against these totals, China has foreign reserves in excess of $2 trillion.

In other words, more than enough to push the tiny gold market around in any way it wishes. Given that much of its reserves are now denominated in fragile U.S. dollars that it would sorely love to replace with something more tangible, and that China is the world's largest gold producer, the country's involvement with gold is something more than just a passing fancy.

Simply, there is a new gorilla in the room in global gold markets. The extent to which the broader market hasn't yet figured this out is the extent to which you as an early mover can ultimately profit. Especially in the more leveraged gold stocks, which continue to be strong even as the broader markets show weakness.



If The Stock Market Falls, Will Precious Metals Stocks Fall Too?
Gold to Stay Above $1,000 This Time Around




That all of this comes before the dollar hits the wall it must hit, or before the inflation that is now baked in the cake arises, lends a lot of credibility to the idea that when the gold bubble begins to expand, it could reach all the way to the moon.

No need to chase gold at these levels, as opposed to buying on dips. But buy.

Sincerely,

David Galland

P.S. As I mentioned above, gold stocks – especially those of the junior exploration variety – will explode to the upside as the bull market in gold progresses. As the subscribers of our junior resource advisory service International Speculator can confirm, double- and triple-digit gains within 12-24 months are commonplace... along with occasional 1,000%+ gains.

If you'd like to join us in finding the best opportunities in this market, click here to learn more.


52%

Year-to-date gain in the price of silver. Silver is considered both a monetary metal (like gold) and an industrial metal.

The Four Major Threats to Your Retirement!

Your ability to accumulate a nice, healthy nest egg can make or break your retirement dreams. A series of looming threats are getting brushed aside and in many ways they're being made worse by all of our country's other problems.

Fortunately, there are steps you can take RIGHT NOW to help you secure and maintain the rich comfortable retirement you deserve.

Click here to learn how to protect and grow your nest egg.


A 73% One-Year Return on Your Cash
By Dr. Steve Sjuggerud
Friday, September 18, 2009

The reality is, virtual banks are in their "sweet spot" right now, thanks to the government artificially cutting interest rates to such low levels.




How the World's Best Investors See the Market
By Porter Stansberry
Thursday, September 17, 2009

In this chart, the second top in stocks we saw in 2007 doesn't exist. It's like the bull market of 2002-07 never happened.



An American Disaster That's Hard to Escape
By Dr. Steve Sjuggerud
Wednesday, September 16, 2009

If you want to give up your citizenship, you have to give up nearly half your wealth above a certain level. The Economist magazine calls it "America's Berlin Wall."



What I Discovered in a Newspaper from September 1930
By Tom Dyson
Tuesday, September 15, 2009

It's tempting to conclude a major collapse is coming in the stock market as we follow the path laid out by the Great Depression. But I don't think that's likely.



What I Learned from a Salesman at Lowe's
By Tom Dyson
Monday, September 14, 2009

It's no exaggeration to say the American consumer is the single most important engine of growth for the entire world economy.




SPECULATION IS NOT DEAD!

"Risk be damned... just give me a good story." That's our theme for Chart of the Week.

Back in 2007, we used shares of China's largest air carrier, China Southern Airlines (ZNH), to gauge the speculative frenzy in Chinese shares. As we predicted, the stock was destroyed when the China bubble popped. This week, we introduce a new poster child for China speculation: Baidu (BIDU).

Baidu has a wonderful growth story. It controls a giant share of the Chinese search engine market – you could call it the "Google of China." This makes it a favorite among "hot money" speculators.

Baidu suffered a terrific fall in 2008, declining from $373 to $104. But as you can see from this week's chart, the stock is soaring right now... and is closing in on its 2007 bubble peak. We're back to "risk be damned... just give me a good story."

– Brian Hunt

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