Inflation or Deflation – Gary North Is Betting On Inflation

inflationThere is a lot of debate going on about whether we are likely to experience inflation or deflation, with seemingly valid arguments on both sides.

(The trend in the price of gold I think is arguing for inflation – or should I say casting its vote for inflation?)

The deflationists always point to items that either go down in price (like what?) or more commonly, skewed statistics about getting more for the same (or more money) like with computing power.

Not only do they not factor in that whatever Intel giveth, Microsoft taketh away, but they also conveniently leave out little facts like, some of us buy a new PC every 5 years, but we buy groceries and energy every day!

(Figures don’t lie, but liars figure is what I always found.)

Today’s eletter from Gary North tells us to bet on inflation, because that is what every government and every Central Bank is aiming for.

Deflation is the death of a debtor and who is a bigger debtor than our very own Uncle Sam? Our pilot at he Federal Reserve, Helicopter Ben Bernanke is insistent on carrying out policies proven to be a failure.

And as we all know, the only way he would ever dump money from a helicopter is if he was hovering over the bank of one of his favorite fat cats. The past two years have shown us that the banks are certainly not going to pass along any of their good fortune to the rest of us either.

Adding to the allure of inflation as a way of getting out from under an unfathomable (and un-repayable) mountain of debt, there is now the issue of upcoming trade wars.

The resident (hopefully not for long) idiots of Congress seem intent on teaching the Chinese a lesson, forgetting that the Chinese hold all the cards. They have US$2.3 Trillion in reserves (yes, that’s a ‘T’), much of it in US Treasuries – for now. They have been buying up strategic reserves of commodities worldwide.

And they have the rare earth materials that all the ‘greenies’ want, in addition to all of us portable electronic device users.

I think we know how this is going to go – badly.

And inflation will be the end result.

Inflate or Die! is the mantra of our Central Bank.

How do you protect yourself from inflation?

Well, how about with the best investment of the last year, the last decade (the current century & millennium)? Gold, silver and the associated mining stocks.

You cannot just buy willie-nillie or use a dart board. Not if you want consistent, long term success.

I have been listening (and investing) in accordance with the recommendations at Casey Research and have done quite well.

Do your own due diligence and check out a no-risk trial subscription to Casey’s Gold and Resource Report

Welcome To The Gold Mania!

Welcome to the Mania

By Jeff Clark, Senior Editor, Casey’s Gold & Resource Report

With gold punching the $1,300 mark, thoughts of what a gold mania will be like crossed my mind. If we’re right about the future of precious metals, a gold rush of historic proportions lies ahead of us. Have you thought about how a mania might affect you? Not like this, you haven’t…

gold-bullion-ingotYou log on to your brokerage account for the third time that day and see your precious metal portfolio has doubled from last week. Gold and silver stocks have been screaming upward for weeks. Everyone around you is panicking from runaway inflation and desperate to get their hands on any form of gold or silver. It’s exhilarating and frightening in the same breath. Welcome to the mania.

Daily gains of 20% in gold and silver producers become common, even expected. Valuations have been thrown out the window – this is no time for models and charts and analysis. It’s not greed; it’s survival. Get what you can, while you can. Investors clamor to buy any stock with the word “gold” in its title. Fear of being left behind is palpable.

The shares of junior exploration companies have gone ballistic. They double and triple in days, then double and triple again. Many have already risen ten-fold. You have several up 10,000%. No end is in sight. Your portfolio swells bigger every day. Your life is changing right in front of you at warp speed.

Every business program touts the latest hot gold or silver stock. It’s all they can talk about.

Headlines blare anything about precious metals, no matter how trivial. Weekly news magazines and talk-radio hosts dispense free stock picks. CNBC and Bloomberg battle to be first with the latest news. Each tick in the price of gold and silver flashes on screen, and interruptions offering the latest prediction seem to happen every fifteen minutes. Breathy reporters yell above the noise on the trade floor about insane volume, and computers that can’t keep up. Entire programs are devoted to predicting the next winner. You watch to see if some of your stocks are named. You can’t help it.

The only thing growing faster than your portfolio is the number of new “gold experts.” It’s a bull market in bull.

You can feel the crazed mass psychology all around you. Your co-workers know you bought gold some time ago and pepper you with questions seemingly every hour, interrupting your work. They ask if you heard about the latest pick from Fox Business. They want to know where you buy gold, who has the best price, and, by the way, how do I know if my gold is real? They all look at you differently now. Women smile at you in the hallway. You worry someone may follow you home.

Your relatives once teased you but now hound you with questions at family get-togethers – what stocks do you own? What’s that gold newsletter telling you? Where can I keep my bullion? You don’t want to be the life of the party, but they force it – it’s all anyone wants to talk about. Your brother tells you he dumped his broker and is trading full-time. Another relative shoves his account statement in front of you and wants advice. You sense someone will ask for a loan. You don’t know what to tell people. The attention is discomforting, and you feel the urge to escape.

At first it was exciting, then breathtaking. Now it’s scary. You’re drowning in obscene profits but are becoming increasingly anxious about how long it can last. Worry replaces excitement. You don’t know if you should sell or hold on. Nobody knows what to do. But the next day, your portfolio screams higher and you feel overwhelmed once again.

You grab the local paper and read the town’s bullion shop had a break-in last night. They hired a security company and have posted several guards outside and inside the store. Premiums have skyrocketed, but lines still form every day. The proprietor hands out tickets when locals arrive: your number will be called when it’s your turn… the wait will be long… please have your order ready… yesterday we ran out of stock at 11am.

You begin to worry about the security of your own stash of bullion – those clever hiding spots don’t feel quite as secure as you first thought they’d be. Is the bank safe deposit box really secure? Shouldn’t they hire a security guard? Should I move some of it elsewhere? Is there anywhere truly safe? You find yourself checking gun prices online.

And it’s all happening because the dollar is crashing and inflation has scourged every part of life. You curse at those who said this couldn’t happen and mock past assurances from government. Cash is a hot potato, and spending it before it loses more purchasing power is a daily priority. Everyone is clamoring to get something that can’t lose value, but mostly gold and silver.

Your wife calls and says the $100 you gave her that morning isn’t enough to buy groceries for dinner. Prices change often on everything. She urges you to get some bread and milk before the stores raises the price again. You suddenly remember you’re low on gas and make plans to leave work early to beat others to the filling station. Restaurants and small businesses post prices on a chalkboard and update them throughout the day. Employers scramble to work out an “inflation adjustment” for salaries.

On your way home, the radio broadcaster reports the government has convened an emergency summit of all heads of state. They’re working urgently on the problem, and all other agendas have been tabled. Outside experts have been called in. We’re going to solve this rampant flood of inflation for the American people, they say. In your gut you know there’s nothing they can do.

You change the channel and hear about the spike in arrests of U.S. citizens at the Canadian border. Scads of people are caught trying to sneak bullion and stock certificates out of the country – from airports to rail stations. Violence at borders has escalated, and stories of bloodshed are getting common. The White House ordered heightened security at all U.S. borders, with the media reporting it can take days to cross. Foreign governments offer meaningless help, others mock U.S. leaders for their shortsightedness. Their countries are suffering, too.

You think about the gains in your portfolio and wince at the taxes you’ll pay when you sell. Nothing has been indexed to inflation, so everyone has been pushed into higher tax brackets. Citizens are furious with government. Agencies have been swarmed with bitter taxpayers and revolting benefit recipients. One government office was set on fire. A riot erupted in Washington, D.C. last week and martial law was temporarily declared. It’s too dangerous to travel anywhere.

As crazy as things are, it’s hard not to smile. You’re in the middle of a mania. Your life has changed permanently. You’re part of the new rich. You can quit work, live off your investments. Your wife is ecstatic, and you both feel as if it’s your second honeymoon. Your kids are amazed and gaze at you with the same awe they did when they were children.

You’re thankful you bought gold and silver before the mania, along with precious metal stocks. You daydream of where you might go, what you might buy. New options open up daily. You realize you’ll need to meet with your accountant, maybe hire a second one to protect your sudden wealth. You wonder what you’ll invest in next. You ponder what charities are worthwhile. Better meet with the attorney to redraft the will.

As night settles and your house quiets, you log on to your brokerage account one last time. Even though you’re ready for it, your mouth drops when you see your account balance. It is truly overwhelming. You think of others who own gold and silver stocks and wonder if any have sold yet.

Has Doug Casey exited?

You stare at the blinking screen, hand on the mouse, the cursor hovering on the sell button…

[We can’t promise the gold mania will be exactly like Jeff outlines, but we’re convinced one is coming for all things gold and silver. And to be prepared for the coming events, you’d do well to listen to those experts who have predicted the quagmire the financial system now finds itself in long before it happened. An all-star cast including John Hathaway of Tocqueville Gold Fund fame… Eric Sprott, Sprott Asset Management… Richard Russell of the Dow Theory Letters… and many more.

All those experts will gather at Casey’s Gold & Resource Summit from Oct. 1 to 3. But even though the summit is sold out, you can still hear every presentation and stock recommendation… on more than 17 hours of audio on CD. If you order now, you’ll save $100 off the retail price. Details here.]

Gold Record – How High Will Gold Go Fall 2010

How High Will Gold Gold This Fall?

By Jeff Clark, Senior Editor, Casey’s Gold & Resource Report

The gold price has been hitting ever-new records over the past couple weeks, now closing in on the $1,300 mark. Some gold followers are saying this is extremely bullish for the near-term price since it broke so decisively through its June 28th high of $1,261. If they’re right, how high might this particular surge go?

While the endgame for gold is far off in my opinion, it’s worth looking at short-term surges, especially if you’re trying to determine to buy at a particular level. Plus, it’s just darn fun.

I looked at all major surges in the gold price since 2001. What constituted a “surge,” in my opinion? Any large jump or uptrend that’s clearly visible on an annual chart. So instead of looking at yearly gains or seasonal tendencies, I simply measured the percent gain of all big upswings that were the most obvious, regardless of when they occurred.

I put the findings to a chart.

gold price surge current bull market
You can see there haven’t been that many large price advances, about one annually until last year. You’ll also notice the biggest “surge” this year is comparatively small. In fact, you have to go back to mid-2001 to find one that didn’t advance at least 20%. Meaning, we may very well be in for a bigger surge yet this year.

The average of all surges in the gold price since 2001 is 23.5%. If we hit the average, gold would spike to $1,428 in the current run-up. Note that I measured from the bottom of the surges, not the breakout point; the bottom I used in our case was $1,157 on July 28.

If our current surge were to match the 35.5% biggie, gold would hit $1,567. A 20.8% advance (the smallest of those greater than 20%) would take it to $1,397. With these numbers, Bud Conrad’s call for $1,350 gold by year-end would be met and surpassed.

The only caveat I’d point out is that we logged three surges last year, the only time that occurred in the current bull market. On that basis, it’s certainly possible we could be due for a breather this year and have thus seen our biggest advance. But given the current global economic and monetary circumstances, I wouldn’t place a bet on that. A survey of 29 analysts by Bloomberg a couple weeks ago reported they see gold averaging $1,500 in 2011 – and most analysts tend to make conservative projections.

Note that there were always small pullbacks in the time periods I looked at; it was never a straight line. So the recent minor drawdown was typical of what occurred during these surges. Also, there were always corrections or at least periods of consolidation after the surge and before the next big upswing.

Regardless of what gold does over the next few months, I think 20%+ surges will continue throughout this bull market, with the occasional 30% punch. And a doubling of the gold price in a matter of months is also likely in our future, a sure sign of the Mania phase. Gold surged 128.5% from October 8, 1979, to January 21, 1980. A similar vault today would have the price jumping from, say, $2,400, to $5,484 in less than four months. Yes, I think that’s entirely possible and perhaps probable.

How high will gold ultimately go? I look at it this way. The sovereign debt crisis in Europe isn’t over. The sovereign debt crisis in the U.S. hasn’t started. We will almost certainly see more quantitative easing (i.e., money printing). We have artificially low interest rates. The U.S. dollar is basically at the same level it was two years ago. We have no official inflation and certainly no big inflation. Less than 5% of U.S. citizens own any form of gold. Central banks are widely expected to be net buyers of gold again this year. Investment demand for gold is still only 32% of all uses of gold, a far cry from the 54% level reached in 1979. I could go on, but you get the idea.

The only way you can benefit from these surges is to be long gold. If you haven’t been a part of one, I guarantee you it’s a lot of fun. Gold is more important than that, of course; it’s your personal safe-haven asset. Buy on pullbacks, slowly increasing your holdings so that what you own makes a difference in your portfolio, both for asset protection and profit potential.

And then, hang on.

[The most profitable way to take advantage of a surge in gold is to own gold stocks. But not all precious metal equities equally benefit from gold’s advances. To own the best producers in the gold industry, try a risk-free trial of Casey’s Gold & Resource Report…it’s only $39 a year. Click here for more.]

Gold Confiscation – How Likely Is It?

Gold confiscation is a highly debated topic, and naturally, no one knows for sure what a current or future U.S. President or Congress will do. Since FDR confiscated gold back in the 1930’s and then promptly screwed previous gold owners out of a huge financial windfall it has been a topic of discussion ever since gold ownership in this “free” country was again legalized in the 1970’s.

Coin dealers use the “threat” of potential confiscation as an excuse to try to sell their customers higher margin numismatic coins since those escaped FDR’s robbery.

David Galland weighs in on the topic now…

Gold Confiscation: Straws in the Wind

by David Galland, Managing Director, Casey Research

In the emails that our readers at Casey Research send our way, questions and concerns about the possibility of gold confiscation rank high.

My somewhat standard response is that, yes, it’s possible, but that we should see straws in the wind well before it happened… allowing us to take measures to protect ourselves.

While I don’t want to make too big a deal about it, there have been clear signs of late that the U.S. government is taking an unhealthy interest in your gold.

My recent article “I Smell a VAT” touched on one such straw. The relevant point being that, thanks to a regulation slipped into the healthcare legislation, coin dealers – and all businesses, for that matter – will have to begin reporting any purchases of $600 or more from anyone, including clients selling back their gold.

While I think the overriding intent is to pave the road for the implementation of a value-added tax (VAT), there’s no question that the legislation simultaneously paints a target on the back of the free trade of precious metals.

Then, a couple weeks ago a friend sent me a copy of Mother Jones, an a unapologetically “progressive” mouthpiece with a cover story titled “Glenn Beck’s Golden Fleece.”
And friend and correspondent Lowell sent along an article with an embedded video link to an lengthy ABC News “investigation” by Clintonista George Stephanopoulos that picks up on the Mother Jones story.
Now that you’ve watched the video – and if you don’t, some of what follows won’t make any sense – I’d like to share some observations based on personal experience.

About Gold Coins

Years ago, I headed up the publishing division of a company (that will go unnamed) with a separate division selling coins. I was there when the coin business started, and while not involved, was impressed at its rapid growth in the heady days of the 1970s gold bull market.

Then something happened. While the founder was a strong advocate for hard money and sincere in his intent to do the right thing by his customers, as the coin business grew, he increasingly recruited “professional” managers to run the firm – hired guns whose sole focus was boosting the bottom line and, by so doing, their bonuses. And the business hired more and more “professional” salespeople – the sort of folks who know how to squeeze a client good and hard.

As the company’s sales soared, fueled by hard-hitting marketing, the founder’s good intentions began to weaken under the onrushing flood of cash that began to wash in. In time, the entire conversation at the coin division switched from “What’s good for the customer?” to “What coins can we sell with the biggest mark-up?”

On those occasions when I was invited to comment on what was going on, I did what I could to argue against the corporate culture that had developed, but my impassioned and increasingly angry fights with the managers of the coin division couldn’t win out over the millions in profits being made. As much as I enjoyed my job, the situation became so degraded, I had no choice but to resign.

Now, let me be clear. The company broke no laws and, in fact, did nothing that I suppose most businesses on to a good thing might not do; marketing was generating lots of prospects, and the sales force was selling.

The problem was that the product line had moved from selling highly liquid government-issued gold and silver bullion coins to selling illiquid “modern rarities,” an oxymoron if there ever was one. Whether “proof” Mexican silver dollars, “treasure” coins, or privately minted commemorative coins, the one thing you could be sure of was that the mark-ups were huge.

Which meant that, in the absence of an active collectors market – which, when it comes to “modern rarities,” just doesn’t exist, and never will – the coins were very unlikely to ever provide a reasonable return on investment, let alone be a good asset to preserve capital. Quite the opposite, they were almost certain losers.

Buyer Beware

In the ABC video, you’ll hear a sound bite from a client of Goldline who spent $5,000 on “collectible” coins, saying that he wanted to buy bullion, but that the sales guy “kinda, sorta talked me into buying these other coins.” Soon thereafter the buyer decided to sell those coins and, when he did, he took a 42% loss. Which, he points out, was a big hit to his net worth.

You can probably spot all the things wrong in that paragraph, but I’ll do it anyway.

First, the disgruntled former client says he was looking to buy bullion coins, but the sales guy switched him to a “collectible.” Whose fault is it that he allowed himself to be swayed? Quoting Nancy Reagan, when dealing with a salesperson, often times the best thing to do is “just say no.”

Second, if taking a loss of about 42% on an investment of $5,000 really hurts his net worth – he shouldn’t have been buying illiquid coins in the first place.

Third, buying any “collectible,” or pretty much any asset, at full retail and then turning right around and selling it, is invariably a sure-fire ticket to a quick loss.

Finally, who is to say that the coin dealer that bought the coins off the client didn’t lowball him? That, too, is part of generating a profit in the coin business.

While I feel sorry for the former Goldline client, he really can’t blame anyone but himself for that loss. He didn’t do his homework or stick to his guns when the salesman tried to move him up to a higher-margin product line.

As for the company, I don’t know them, but I do know that they spend a lot on marketing and celebrity endorsements. It doesn’t take a genius to figure out that money has to be recouped from somewhere – specifically, the clients. Which is why I strongly suspect that, yes, the company’s salesmen are especially aggressive. And that they try very hard to load their clients up with high-margin coins.

Let me recap some lessons from this article, and based on my own brush with the business.

First, if you’re going to become a coin collector, don’t think you can stumble into it and enjoy any measure of success. Do your homework – then do some more – before actually laying out your hard-earned cash. Fortunately, there are a lot of useful resources out there for you to rely on… pricing guides, auction results, and numismatic groups, to name just a few.

More important, however, is that if you are not going to be a collector, then stay away from anything but U.S. or Canada-minted bullion coins, or bullion bars issued by the widely acknowledged mints such as Johnson Matthey.

Will the bullion products be exempt from confiscation, should it come to pass? No. But trying to avoid confiscation by dealing yourself into a large loss right out of the box by overpaying for an illiquid pseudo-collectible is just silly… no matter what the sales person tells you.

What’s in the ABC Gold Coin Video That Should Concern You

While imminent confiscation isn’t really addressed in the ABC exposé of Goldline, there were some things that caught my eye as worthy of further reflection.

The first was the contention by the appropriately named NY congressman, Anthony Weiner, that it was ludicrous to suggest that the government could ever just confiscate a person’s gold. Excuse me? Deep breath. If the Weiner were to repeat that contention to my face, the conversation might roll out something like this…
“What!?! Did you actually just say what I think you said?”
“Why, yes, David, I did.”
“Are you kidding?”
“Why, no, David, I am not.”

“So, a government that can invade countries on false pretenses… arrest people and throw them into prison camps and hold them indefinitely without trial… whisk suspects off to foreign countries to be tortured… hit targets in sovereign nations on the other side of the globe with missiles fired from drones… declare imminent domain to take private property in order to give it to a hotel developer… confiscate homes because someone on the property, maybe not even the owner, is caught with a marijuana cigarette… freeze the bank accounts of anyone suspected of a crime, then not let them use their own money to defend themselves… offer known criminals, murderers even, ‘Get out of jail free’ cards if they testify against someone else… but they wouldn’t confiscate gold? Oh, and by the way, Roosevelt already did it once, you moron!”

“Who are you calling a moron? Security, we have a problem.”

Another deep breath. Pat hair back into place and resist urge to apply my forehead to the keyboard.

But enough of Mr. Weiner.

The second thing that should concern you – and the EVP of Goldline tossed Stephanopoulos a soft pitch down the middle on this one – was when he mentioned that his salesmen have instructions to “advise” their clients on the best sort of coins to buy. Paraphrasing Stephanopoulos, “But your people aren’t licensed as investment advisors, are they?”

No, but I suspect that, if this witch hunt continues, they may soon have to be.

Especially because a congressional committee has been set up to investigate this serious matter. Surprise, surprise, the co-sponsor of the committee is none other than Congressman Weiner. Apparently he was chosen for this particular bit of dirty work. While all of this may be nothing more than grand standing and bare-knuckle politicking, any time Congress gets involved, pretty much anything can happen; keep your eyes open for a fresh assault on the gold coin industry.

And, finally, the thing that probably concerns me most is that, whatever else he is, Glenn Beck is a highly visible and apparently effective critic of the current administration. Having failed to knock him off the air by unleashing a well-financed boycott that chased away many of his advertisers, it appears the Democrats are now pursuing their vendetta against Beck by attacking the business practices of the show’s largest sponsor. No matter what your opinion is of the man, this sort of determined government-backed assault should make your antenna go up.

Is Goldline an angel? Based on my experience with the industry, probably not. But in this case, I’m not sure that that matters as much as that they sponsor Beck’s show.

A Final Word – on Gold Confiscation

Do I think confiscation is imminent? No.

But I do think that the straws in the wind point to yet more regulation. This could ultimately place gold dealers under the watchful eye of the SEC or some other Frankenaucracy that emerges out of the new financial reform legislation.

I am not a fan of regulation – even if it sounds like a good idea. For instance, to protect the ignorant from predatory salesmen. My rationale is that this is not a perfect world and never will be. Humans can and will find a way around every rule (witness the fact that Madoff, the former head of the NASDAQ, was able to scam billions off clients). Therefore, the sooner the citizenry learns that they have to rely on their own common sense – and actually educate themselves – before reaching for their wallets, the better. Having an implied government blessing over every transaction does nothing but create a false sense of security.

But that’s just my particular, and some think peculiar, world view. Back in the world we live in, any new regulations will, if nothing else, assure that any private transactions between you and your favorite coin dealer will become a thing of the past. The new reporting requirement on purchases of over $600 pretty much makes that a reality.

With this new layer of reporting in place, should the sovereignty come to the conclusion that it, versus you, should be in possession of your gold – they’ll know whose door to knock on.

Of course, we can’t know if and when such a thing might occur… but to pretend it can’t is to be naïve or, in the case of Weiner, disingenuous.

In my article, “I Smell a VAT,” I touched on some ideas for how you might protect yourself from a possible gold confiscation (none of which involved buying overpriced coins.

There is one other option I didn’t mention – expatriate. Many of the happiest people I have met in my life have their passport from one country, residency in another, and money/gold in a third.

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As David says, getting your money – and maybe yourself – out of the U.S. is one of the smartest strategies to protect your wealth from the long and ever-growing arm of the government. Click here to read our new report on the 5 best ways of internationalizing your assets.

Is Now a Good Time to Buy Gold?

Summer Doldrums – Is Now a Good Time to Buy Gold?

By Jeff Clark, Senior Editor, Casey’s Gold & Resource Report

While we’re convinced gold and gold stocks are destined for much higher levels, buying when prices are low can mean the difference between a double or triple and a ten-bagger… a week in Malibu vs. a week in Milan.

There’s no secret formula to buying low, and we aren’t holding the right hand of Midas, but there are periods when prices tend to be lower than others. And if those tendencies play out, it can give us the opportunity to snag a high-quality asset at a bargain price.

So, how do you get a bargain price? You cheat.

I think the secret to getting a low-cost basis on all your gold and gold stocks is this: only buy on significant price pullbacks.

And this can be done without trading or using technical analysis.

I think there’s a good chance we can cheat this summer. For example, here are the average monthly increases in gold since our bull market began in 2001.


In our current 9-year bull market, June and August have seen the lowest average return for gold, representing one of the best times to buy.

You’ll see that in the bull market of the 1970s, summer was also a good time to buy gold.


What about gold stocks? Since 2001, June and July have been among the weakest months and thus one of the best times to buy.


Obviously, these are price tendencies and not certainties. There were Junes when gold was up, and some Julys when gold stocks were up. Meaning, we’d avoid using these charts for trading purposes or in anticipation of an immediate gain. Instead, use these “trendencies” to look for possible price weakness. And if it arrives, use the opportunity to add to your holdings and position yourself for the next leg up in the bull market.

What are the odds of a correction in gold and gold stocks this summer?

?Since 2001, almost every precious metal stock, in every summer, has moved lower from its May high. This includes gold and silver. There’s no guarantee this won’t be the summer of galloping unicorn herds, but the record is hard to argue with.

Here are the buy zones I identified for gold and silver, based on a tally of how far they’ve corrected from their May high to their summer low, in each year of the current bull market.


You’ll see that the average price of all pullbacks in gold, from the May highs to the summer lows, is 8.9%, and would take the price to $1,126.98. That’s not to say this price will be hit, but it tips you off that a fall to that level would not be out of the ordinary – and would also be an invitation to buy. You can also see the smallest summer decline, which we’ve already exceeded. We wouldn’t wait for the largest drop to materialize; there’s a good chance you’d be left empty-handed and chasing the stock higher.


Silver is naturally more volatile, allowing us perhaps a better opportunity to buy low. The average summer decline for silver is 16.6%, which would take the price to $16.39. However, the furthest its fallen so far this summer is $17.36, meaning strictly on a historical price basis, a 10% correction from current levels would be perfectly normal. And again, an invitation to buy.

Whatever price (or prices) you select, I’d only use the charts to add to current positions, not for trading. The currency crisis Casey Research believes is inevitable could strike suddenly again and will eventually hit the U.S. dollar, and the last thing you want is to be left standing on the sidelines if gold and gold stocks surge higher. In our opinion, being completely out of precious metals in the middle of a once-in-a-generation bull market would be a mistake. Instead, keep adding to your savings every month and buy when it feels like you’re cheating.

See you in Milan?

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Want to see the buy zones for all our recommended gold and silver stocks? Our Summer Buying Guide is an invaluable resource for buying low. And check out our just-released July issue, where a respected bullion seller tells you why in the near future you may not be able to buy gold, at ANY price. Try a risk-free subscription for only $39 per year. Details here.

Is Gold In A Bubble – The FINAL Answer

While a few mainstream outlets are coming around to at least acknowledging gold’s stellar run, most remain skeptical or outright bearish. And the blasphemy they purport is that gold is in a bubble.

For the Last Time, Is Gold in a Bubble?

Jeff Clark, Senior Editor, Casey’s Gold & Resource Report

While a few mainstream outlets are coming around to at least acknowledging gold’s stellar run, most remain skeptical or outright bearish. And the blasphemy they purport is that gold is in a bubble.

Let’s settle it, right now, and shut these naysayers up.
2010 gold price - is gold in a bubble
Gold returned 10 (and as much as 14) times your money in the 1970s bull market, and the Nasdaq advanced over 1,900% during its run. Our current gold price is up about 400% (when measured on a daily basis, not monthly as in the chart).

In fact, the Nasdaq gained 182% in the final year of its peak, and gold surged 80% in four weeks during the blow-off top of January 1980. None of this is happening to our current gold price.

Note to doubters: we’ve got a long way to go before we start legitimately using the “bubble” word.

Besides, the fact that these skeptics aren’t buying – and don’t even own any gold in the first place – is further proof we’re not in a bubble. Ever notice none of them claim to own it?

And they definitely need to catch up on world affairs. The World Gold Council (WGC) reported that Russia, Venezuela, the Philippines, and Kazakhstan all bought gold in the first quarter. Central bank sales, meanwhile, remain depressed.

Russian President Medvedev won’t quit his quest to move international reserve assets away from the dollar. And his country’s central bank is backing up his words; it increased its gold reserves by $1.8 billion and decreased its currency reserves by $6.6 billion so far this year.

China, the world’s largest gold producer, already buys all the gold produced within its country. But the WGC recently forecasted that overall gold consumption in China could double in the coming decade, a demand that production certainly won’t be able to match.

The Iran/Israel showdown appears closer almost every week. As further evidence that each side is preparing for conflict, Saudi Arabia recently agreed to permit Israel to use a narrow corridor of its airspace to shorten the distance for a bombing run on Iran – all done with the agreement of the U.S government. Simultaneously, the UN Security Council imposed a new round of sanctions on Tehran. Nobody appears to be backing down.

And the current run in gold is with no inflation. Core CPI has fallen to the lowest level since the mid-1960s – but what happens when inflation does set in? And what if it’s as bad or worse as the 14% rate we got in the ‘70s? Sure, deflation is the immediate concern, but with a U.S. federal debt of $13 trillion, unfunded future liabilities exceeding $50 trillion, and a current budget deficit of over 10% of GDP, a massive debasement of the dollar is virtually ensured, triggering an onslaught of inflation. It’s coming.

With all these concerns, these guys don’t want to own gold?

Bubble, schmubble. Stocks are vulnerable, bonds are toast, currencies are fiat. Other than cash, where are you going to put money right now?

Gold could correct, of course, and I frankly hope it does. I’m not counting on it, though. The price is just as likely to head the other direction. But if it does temporarily fall, while the bubble-heads are smirking, I’ll be buying.

Someday I think we’ll be reversing roles.

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How far could gold and silver fall? And precious metal stocks? Check out our annual Summer Buying Guide in the current issue of Casey’s Gold & Resource Report, which identifies buy zones for all our recommendations. You can try it risk free here…

The 2010 Silver Buying Guide

The 2010 Silver Buying Guide

By Jeff Clark, Senior Editor, Casey’s Gold & Resource ReportSilver has been sizzling and causing lots of buzz in the industry. Investors are excited.

Part of the hubbub is due to its current run. Since its February 8 low, silver has roared ahead 22.4% (through June 21) and has doubled from its November 2008 low.

This excitement has spilled over into greater investment demand – especially so for coins. The U.S. Mint sold more Silver Eagles in the first quarter of this year – just over nine million – than any prior quarter in its history. The Royal Canadian Mint produced 9.7 million silver maple leafs in 2009, also a record.

Take a look at the jump in U.S. Mint coin sales since 2007.

Silver bullion ETFs are growing, too, experiencing a five-fold increase in metal holdings since 2006.

There’s plenty we could talk about with silver, but our goal is to make money. So let’s focus on answering just two questions: Is today’s price expensive or cheap? And, what are the best silver coins, ETFs, and stocks to own?

We have all the answers straight ahead, including lots of actionable info, so let’s jump right in…

Why Should I Buy Silver?

There are several reasons to own silver in addition to gold.

First, it’s cheaper! Known as the poor man’s gold, those with limited budgets will find it easier to purchase. You might hesitate plunking down $1,200 for an ounce of gold, but you can pick up 32 ounces of silver for half that amount.

Second, silver has wide industrial use and this component can help or hinder its price. As its consumption increases across a growing number of industries, this should help place a floor under demand. And because of its unique properties, new uses continue to be discovered.

Third, silver is money and has served this role more than any other material on earth, save gold. Due to its historical role, silver will always have monetary value and offer similar protection as gold to the ongoing global currency devaluations, and will definitely benefit from the inflation hurricane we see as inevitable.

Silver is more practical as a currency used for everyday purchases. When the time comes, you can sell the requisite number of silver coins to cover a specific need, as opposed to being forced to liquidate a high-dollar-value gold holding. Silver is perfect when smaller amounts of cash are required.

Fourth and last, silver could possibly outperform gold before this bull market is over. The market capitalization of silver (and silver stocks) is much smaller, making its price more susceptible to demand spikes than gold.

In the latter part of the 1970s precious metals bull market, gold gained over 700% – but silver soared over 1,400%. If you’ve got a bit of Gordon Gekko in you, we recommend investing a portion of your dollars in silver.

Caution – Hot!

Like all things, silver has its drawbacks, two in particular.
First, the price is volatile. Over the past 12 months, silver has seen gains of 53.8% and 22.9% and drops of 21.9% and 19.6%, all within a period of months or even weeks.

If you’re going to own silver, you must be prepared for big price gyrations. The best way to do that: buy it and forget about it. And…

?Make price volatility your friend. Big price swings present the opportunity to snag silver at a big discount. We give some guidance on prices below.

Second is the storage issue. As your pile grows, the advantage to storing gold will become self-evident. At $1,200 gold and $18.50 silver, $10,000 will get you eight gold eagles that will fit nicely in the credit card slots of your wallet; however, it will buy 540 silver eagles, weigh nearly 34 pounds, and fill a small bank safe deposit box.

?How to store physical silver. There are several ways to solve the storage dilemma, even if you plan to buy like the Hunt brothers.

  1. Spread your holdings around. Not only is it wise to avoid keeping all your physical silver in one place, diversifying your storage arrangements allows you to buy more. Hide some at home in several locations (no cookie jars, though), and obviously tell only one trusted person. Store some in a bank safe deposit box and use more than one bank as your holdings grow.
  2. Buy bars. Silver bars take up less space than a pile of coins of the same weight. We wouldn’t start out with nor have all our holdings in bars, because you want the advantage coins offer. But the larger your holdings, the easier it will be to store some of it in bar form.
  3. Use pool accounts and unallocated storage. With a pool or unallocated account, you’re essentially getting free storage no matter how big your stash. That’s hard to beat. You’ll pay fabrication and delivery charges if/when you convert your holdings and take delivery, but in the meantime, you save on storage costs. Great value for the large holder.
  4. Private storage. Store your silver with a private vaulting company. The advantage is that it’s outside the banking system; the disadvantage is that it’s usually expensive, though it can be cost effective for large holdings. Do your own due diligence if you go this route because we can’t vouch for any facility, but you could start by checking out delawaredepository.com. Keep in mind that using a vaulting facility beyond a reasonable driving distance will mean added shipping/insurance costs and restrict quick access.

Is Now a Good Time to Buy Silver?

With the gains we’ve seen in silver, would we buy right now?

Let’s first look at the big picture. The following chart shows how far silver is below its inflation-adjusted peak reached in 1980.

Another clue some investors watch is the gold/silver ratio (gold price divided by silver price) shown below.

Since our current bull market in precious metals began in 2001, the ratio, while fluctuating wildly, has never gone below 45. And yet look where it went during the precious metals peak in 1980: it bottomed at 17. Even though gold was soaring at the time, silver outran it.

The ratio might show relative strength between gold and silver, but it’s not a good buying indicator. A falling ratio could mean silver is rising faster than gold, like it is currently, or it could mean silver is falling slower. As a result, we’d use the ratio to determine silver’s upside potential but not necessarily when to place an order.

These big-picture signals tell us silver is undervalued and, at the moment, a better bargain than gold. And given the currency crisis we’re convinced is in the cards, we wouldn’t want to be caught without any. If you have a long-term mindset, silver is a buy today.

Would we wait for a better price?

If you do not own any, and plan on holding what you buy until a mania develops, then we wouldn’t wait. The risk of buying silver at current prices is lower than owning none at all.

If you do own some but want to add to your holdings, we’d probably wait for a drop in price, in part because silver could more easily fall when the economy is found to be more fragile than what many believe. And with industrial uses comprising approximately half of silver’s demand, it would be more susceptible to sell-offs than gold if our research is correct about global economies.

Further, summer usually brings pullbacks in prices, and this can be especially true for silver stocks. This is the tendency, though we can’t be sure if this summer will follow past trends. Still, our best guess is to anticipate another leg down this year. If you already own silver, we’d look for a correction to add to your holdings.

In our opinion, owning no silver in this bull market would be a mistake. And your first (and biggest) investment in silver should be in a physical form.

How much physical silver should you have? There’s no right answer and one size will not fit all. But we do recommend holding more gold than silver. Our suggestion for your precious metal holdings is roughly 80% gold and 20% silver.

Like gold, silver comes in different forms. We’d start with the more popular one-ounce coins and then branch out into other types as your holdings grow.

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[The above is an excerpt from the May issue of Casey’s Gold and Resource Report. Find out our top recommended dealers, including special pricing, along with Jeff Clark’s picks for the “best silver ETF” and the “two best silver stocks in the world.” And our June issue is our annual Summer Buying Guide. You can check it all out risk-free, for just $39/year, with a 3-month, 100% money-back guarantee. Get it right here.]

Is The Gold Bull Market Over?

Q. Won’t the government see gold as a threat to its fiat currency and try to do something about it?
A. Of course, governments might try any number of stunts that could affect gold. For example, raising margin requirements to curb playing the markets with leverage, or even attempting outright confiscation.
All we can do is to monitor the situation closely and try to anticipate their next moves in order to get out of the way. A number of people I know have opened safety deposit accounts in other countries as one way to hedge their bets against confiscation. Others have bought numismatics – but be careful on that front, because that can increase illiquidity.
It is not out of the question, in my view, that before this is over, we could see a revaluation of gold in order to re-link the U.S. dollar to it – because sooner or later, as the crisis reaches its climax, something is going to replace the fiat currencies – but at this stage it’s impossible to guess what that will look like. If we did see a return to a gold standard, then the government could actually be responsible for sending gold up by many multiples.
Back to the present, at this point I can’t see anything that is going to derail this bull market – but I do see a whole lot of things with the potential to send it into the stratosphere.

According to CNN Money this morning, and Jon Nadler of Kitco, there probably never was a bull market in gold. After all, gold merely advanced from $280 per ounce to around $1200 per ounce now. Hardly worth noting, right? Back to “fair value” (what’s “fair” when compared to fiat currencies with TRILLION dollar deficits?) of $800 next year at the latest, probably this year.

Oh, that’s right, it’s a gold BUBBLE – even though the average guy on the street knows nothing about gold except where to take his old jewelry as scrap to SELL it! Is that how bubbles work? Not in my neighborhood.

Here’s an article from David Galland of Casey Research to help clear things up. Take it away, David.

The End of the Gold Bull Market

David Galland, Managing Director of Casey Research, interviews… David Galland. Q. With gold and gold stocks on a tear, does Casey Research still recommend holding 1/3 of a portfolio in cash?

A. The answer depends, of course, on what country you are currently sitting in. Were I sitting in the eurozone, I would have already moved much of my safe-harbor cash into the “resource” currencies such as Canada and Norway… i.e., countries that are rich in the natural resources that the world needs and will always need.

If my derrière were resting in a seat planted on U.S. soil, as it is, and I didn’t plan on doing any significant overseas spending, then I would feel relatively comfortable – for the time being, with a larger than usual allocation to the dollar. But I would have been diversifying into the resource currencies as well.

Q. Hold the fort, dude – how can you write frequently about the demise of the dollar and yet be “relatively comfortable” holding the stuff?

A. In a nutshell, the monetary inflation, quantitative easing, and insane spending of the U.S. government, emulated by countries around the globe, have set the table for a large serving of currency depreciation down the road.

Once that depreciation begins to appear in the form of price appreciation, we’ll look to trade our greenbacks for more in the way of tangibles – probably more gold… maybe real estate in a good location, location, location… maybe more silver… maybe deep-value energy stocks… maybe antiques… maybe some of all of the above.

For the time being – because price inflation is not out of control and yields are so low – there is little real carrying cost to holding a larger allocation to cash, and the flexibility and security of having cash is a big plus.

Q. What about gold and gold stocks today?

A. Gold is sound money. Always has been, probably always will be. In the sort of crisis now underway – a crisis that to no small extent is now focused on sovereign fiscal and monetary excesses – gold has a particularly important role in protecting wealth.

If you don’t own it, start accumulating it, preferably on the inevitable dips. If you do own it, hold it and consider accumulating it up to somewhere between 20% and 30% of your portfolio, though the exact amount will depend on factors such as your cash flow needs, personal debt obligations, your age and work status, etc., that we can have no way of knowing.

One of the nuances in answering this question has to do with deciding what form of gold to own. While we like physical gold held in a safe place, you don’t want to go overboard, because things can happen. For instance, robbery, or even a house fire that melts your wealth back into the dirt.

In addition, at some point the gold bull market will end, and when it does, the scramble to sell will likely overwhelm the coin dealers to the point where they literally take their phones off the hook. That creates the potential for big gaps down in the price between the time you decide to sell and are actually able to sell. Mind you, I don’t see that being a concern anytime soon – but it’s always worth keeping in the back of your mind.

There are a number of other bullion alternatives – a big positive being that many are easy to buy, hold, and sell – including allocated and unallocated gold accounts, electronic gold, gold ETFs, and so forth. Some are better than others – and all are worth understanding before making investments. Our Casey’s Gold & Resource Report is a good source for this sort of info.

Generally our recommendation is to hold your gold in a variety of investment vehicles as that will mitigate the risks of having too many eggs in one basket.

Turning to gold stocks, savvy investors will already be well positioned in the best of the best. And will own many positions risk-free, having already recaptured their original investment. If that is the situation you are in, and you really understand the companies you are invested in, then at this point either hanging in for the big upside or trading the surges and dips makes sense. If you are new to the sector, I wouldn’t chase the stocks just now – but rather put in stink bids – i.e., 10% to 20% below the current market, and look to get filled on a correction.

If you are new to the gold stocks, or risk-averse, then look to build a portfolio of large-cap gold stocks such as we cover in Casey’s Gold & Resource Report. Those will attract a lot of attention from the public at large, and from institutions, as the bull market gathers steam.

If you have experience with gold stocks, and a higher tolerance for risk, then you may want to focus on the small-cap Canadian explorers and developers. Those juniors have amazing volatility and, when the news is good, the upside can be breathtaking.

Regardless of the approach you take, don’t chase stocks as they move higher – but look to build your portfolio on dips over the next few months.

The idea is to get positioned before the underlying price of gold reaches a level where the public starts to come into the sector in a big way – at which point, if history is any guide, the early investors will make stunning returns.

Q. At what price do the gold stocks catch fire?

A. Some years ago, we had someone spend the better part of a week in a musty storage room full of old Canadian newspapers, paging through past issues and recording the price and volumes of the gold stocks during the last big run-up, in the 1970s. We then compared that data to the gold price in inflation-adjusted dollars in order to determine the price when the broader investment public began piling into the gold. The number worked out to about $1,250 per ounce in today’s dollars. In other words, when gold decisively takes out $1,250 an ounce and holds above that level, if history is a guide, we may start seeing the average guy on the street – and the institutions – pile into the stocks.

Of course, while interesting from an historical perspective, that analysis has no scientific basis. The key point, therefore, is that during the last big gold bull market the public wasn’t involved in the gold stocks when they should have been – in the run-up phase – but rather only piled in after the price of gold bullion soared, relatively late in the bull market. So far, the average Joe and Jill are just not in this market. But they will be.

Q. How high do you think gold will rise?

A. At our recent Crisis & Opportunities Summit, an attendee asked how high we thought the dollar price of gold would reach in this bull market.

My response was that there really is no way of actually forecasting that number, for the simple reason that, in a fiat currency regime, the underlying unit of valuation is so intangible. Let’s say you lived in Zimbabwe some years ago and owned an ounce of gold. One day your ounce might be worth 1,000 of the local currency units. A year later, it might be 1,000,000. Or even 10,000,000,000.

While the U.S. is no Zimbabwe – at least not yet – its currency is just as intangible, for the simple reason that the government can print the stuff pretty much at will. To say that gold will go to $5,000 in the current crisis is really just another way of saying that the dollar currency unit will fall by some significant degree. But, given the uncertainty in the economy and the unknown of what actions the government and the Fed might take next, we really can’t know how much purchasing power the currency unit will lose in the months and years just ahead.

To date, the government has been extraordinarily – breathtakingly – willing to abuse the dollar. They have largely gotten away with it so far, but that certainly doesn’t mean they will get away with it forever. When the time comes for the piper to be paid, we suspect he’ll be paid pennies on the dollar… which could easily result in gold trading for $3,000, $5,000, $10,000 per ounce – but, who knows, maybe even $10,000,000,000.

The point is, given the choice between dollars and gold, you are far more likely to preserve your wealth over the duration of this crisis with gold.

Q. Is the gold bull market getting old? How much longer can it last?

A. Having been around and actively involved in hard assets – as the editor of “Gold Newsletter” and the conference director of the New Orleans Conference – during the last big gold bull, I hope I can provide some useful perspective.

For instance, I can well recall when, in late 1979, all of the many gurus of the day were predicting gold would keep going higher and higher still. Well, as we all know, it didn’t.

What’s interesting about this time around is that there is almost no scenario we can envision that is going to kick the legs out from under the gold market – at least not anytime soon. In contrast, in the late 1970s, the gold bulls coulda/shoulda seen that the Fed had a lot of room to act – i.e., by pushing up interest rates – in order to tackle the price inflation that was the key driving force in the soaring gold prices of the time.

Today, the situation is profoundly different. Starting with the fact that this is, at the core, a debt crisis. And the one thing you can’t do in a debt crisis is to encourage interest rates to rise. Look no further than Greece for that lesson.

So, we have an unprecedented monetary inflation, truly out-of-control sovereign spending and debt, unprecedented levels of private debt, unprecedented trade deficits, a massively overbuilt and overpriced post-bubble real estate market, and, importantly, near historically low interest rates.

So, we have to ask ourselves – other than continuing to exercise its powers of fiat money creation – what ammunition does the government have at its disposal to address the structural problems of today’s economy? And, of course, actually creating more money and more debt isn’t addressing the structural problems, it is compounding them.

Of course, the government can default on their sovereign obligations – an option I think we’ll see Greece and others of the PIIGS take, and probably fairly soon.

They can also continue to inflate, which we expect them all to do.

And they can… no, actually, I think that about sums it up: default or inflate. In either scenario, gold is going to be seen as the ultimate safe harbor.

Q. Won’t the government see gold as a threat to its fiat currency and try to do something about it?

A. Of course, governments might try any number of stunts that could affect gold. For example, raising margin requirements to curb playing the markets with leverage, or even attempting outright confiscation.

All we can do is to monitor the situation closely and try to anticipate their next moves in order to get out of the way. A number of people I know have opened safety deposit accounts in other countries as one way to hedge their bets against confiscation. Others have bought numismatics – but be careful on that front, because that can increase illiquidity.

It is not out of the question, in my view, that before this is over, we could see a revaluation of gold in order to re-link the U.S. dollar to it – because sooner or later, as the crisis reaches its climax, something is going to replace the fiat currencies – but at this stage it’s impossible to guess what that will look like. If we did see a return to a gold standard, then the government could actually be responsible for sending gold up by many multiples.

Back to the present, at this point I can’t see anything that is going to derail this bull market – but I do see a whole lot of things with the potential to send it into the stratosphere.

Q. Thank you for your time.

A. My pleasure. Always happy to be of help.

Q. You’re kind of strange, talking to yourself and everything. You know that, right?

A. Sometimes I wonder.

Europeans are starting to get the picture – many precious metals sellers in Europe are now finding themselves out of stock – but most Americans are still woefully clueless when it comes to the safe-haven value of gold. And timing can be most important. Read our FREE report How Do I Know When to Buy? Receive it here.

Some Perspective On The Price Of Gold

But wait, I heard someone in the back shout, “There is no inflation today!” Wrong, there is unprecedented inflation – properly defined as an increase in the monetary base. What’s missing, so far, is the inevitable consequence of the inflation – steadily rising prices.
That will come, and when it does, the government will find it is going into a gunfight with a (dull) knife – because raising interest rates in the Kingdom of Debt will lead to a predictable outcome.
Unfortunately, thanks to the inflation, interest rates are going up no matter what the government would prefer to happen, a contention of ours that is now gaining traction in the mainstream.
And, yes, up to a point, history shows gold and interest rates moving upwards in concert.
Don’t go crazy about buying gold, but by all means, if you don’t own some, begin a monthly program of purchases….

Gold in Perspective

By David Galland, Managing Director, Casey Research

As the price of gold rises and the inevitable quacking begins again about the “barbaric” metal being overvalued, I thought a quick check-in with the historical perspective might prove useful.

The first of two charts that follow shows the long-term picture of gold from 1970 to the present, correctly adjusted for inflation.

gold-price-inflation-adjusted

In the second chart, we overlay the inflation-adjusted price of gold from the last secular gold bull market in the 1970s, with the secular bull market we’re now in.

gold-still-looks-cheap-adjusted-for-inflation

As you can see, if the current bull ends with the sort of grand finale we saw at the end of the last big blow-off, then prices have a long way to go from here. That said, a credible case can be made that this time around, the price could go much higher.

percentage-of-the-population-unemployed-27-weeks-and-over

For starters, in the 1970s, though not good by any means, the economy was in much better shape than it is today. The chart here uses long-term unemployment as a proxy for that contention.

As you can see, at the end of the 1970s, the employment picture was quite healthy.

Today, in addition to wildly out-of-control debt on both the private and public levels, we have a massive problem with unemployment and the consequences of a burst housing bubble. Thus, Paul Volcker’s somewhat simplistic solution to inflation – and the trigger for the end of the last gold bull market – seriously ratcheting up interest rates, is off the table. (Since we’re trying to gain perspective, I’ll remind you that at the beginning of the 1980s, mortgage rates topped 18%.)

But wait, I heard someone in the back shout, “There is no inflation today!” Wrong, there is unprecedented inflation – properly defined as an increase in the monetary base. What’s missing, so far, is the inevitable consequence of the inflation – steadily rising prices.

That will come, and when it does, the government will find it is going into a gunfight with a (dull) knife – because raising interest rates in the Kingdom of Debt will lead to a predictable outcome.

Unfortunately, thanks to the inflation, interest rates are going up no matter what the government would prefer to happen, a contention of ours that is now gaining traction in the mainstream.

And, yes, up to a point, history shows gold and interest rates moving upwards in concert.

Don’t go crazy about buying gold, but by all means, if you don’t own some, begin a monthly program of purchases.

While it would be perfectly natural to see the gold stocks give back some of the big gains they have offered since last year’s correction, any further corrections should be viewed as opportunities. But again, don’t go overboard. If you have an investment portfolio with 20% to 30% in a combination of precious metals bullion, large-cap and small-cap stocks, you’ll be well positioned – and protected – for what’s coming.

To learn where to buy physical gold and where to store it… and which major gold stocks, mutual funds, and ETFs are the safest while giving you handsome upside… read Casey’s Gold & Resource Report. At $39 per year, it’s a steal for the value you get out of it. Click here for more.