Gold Could Rebuild Your Retirement

How $2,320 Gold Could
Rebuild Your Retirement
Before September 26th 2009!

Dear Investor,

Is it just me, or do you feel like you've been beamed back to the late 1970s too?

Look at what's happening right now…

  • The global economy is tanking fast thanks to government and central bank mismanagement
  • Billions have been wiped off the value of world stock markets as economies deteriorate
  • The world is on the brink of an energy crisis as volatile states control dwindling supplies
  • Paper currencies are losing value by the day as supply increases to bail out ailing industries
  • Seemingly limitless government borrowing threatens spiralling Inflation and higher taxes

All we're missing are the flared trousers, the bushy sideburns and Abba at number one in the charts!

It's eerily similar to the circumstances which led to economic devastation in the late seventies... astoundingly so, in fact. But that's not the most astounding thing about all this.

The real shocker is that investors have failed to learn the lessons of the past!

And that's why I'm writing to you today. You see a very interesting thing happened in the late 1970s, just as the world was entering one of the most miserable economic downturns in living memory…

And that something could hand you one of the biggest investment lifelines of the year... maybe even the decade!

What am I talking about? I'll explain:

In the late seventies, as global financial chaos reigned and inflation took hold, gold rocketed up to US$875 an ounce!

Now, with today's prices around the $844 mark, that may not seem like such a big deal. But what happens when you adjust that figure for inflation?

You get a REAL gold price of $2,320 an ounce!

You can see the historical price of gold - adjusted for inflation - on this chart...

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Can you see where this is heading?

If you can, you may be about to make the most significant investment decision of your life.

Some people already have. Investors who know their history are starting, once again, to pile into gold in their droves. They know that in the last few years of the 1970s, the gold mining sector featured quadruple digit share price gains as gold roared into the stratosphere. With the same economic conditions prevailing now, it's not a massive leap to see the same happening again

Bottom line: we could see $844 gold turn into $2,320 gold… within the next 12 months! Talk about getting your retirement plans back on track…

Smart investors know that gold set off on such a meteoric rise in the late 1970s because it was as good as money back then. As inflation took hold and prices spiralled out of control, investors rushed to the only investments that actually gained in value...

Scarce, precious metals like gold became the single hottest investments on the planet. And they will again. The question is - will YOUR money be on the right side of this curve? If you want it to be, you may not have long to act…

The 2009 gold super bull-run is ABOUT TO
BEGIN - but the gate is closing fast...

Today I want to show you how $844 gold will seem like the bargain deal of the century this time next year. Future investors will look back on the early part of 2009 as the beginning of something huge.

And you and I will be laughing… because we saw it coming!

A gold super-bull-run has been set in motion. And the interesting thing - the factor that hands you this once in a lifetime opportunity today - is that it hasn't affected prices yet! By my reckoning the gold rocket won't blast-off properly until a few months into 2009. Right now, clever investors are buying up window seats and frantically herding into the departure lounge waiting to board.

They know that the time to strap themselves in is now...

There are still a few bargain-priced tickets left if you want to bag one!

Why gold HAS to rise in the next year

In big picture investing, there's no better teacher than history…

In the late 1970's inflation was eroding the value of cash and savings at over 10% per year. So investors swapped their paper currency for precious metals. Enough people adopted this strategy that it sent gold prices up over 200% in a year. It capped an incredible five-year run for gold prices.

If you glance out the window at today's economy, you'll find you're looking at a similar situation.

The scourge of inflation is only beginning to rear its filthy head. According to US economist Jim Bianco, the credit crunch has already cost America more than the New Deal, World War Two, the moon landing and the savings and loan crisis combined!

Over $4.3 trillion spent on Wall Street and not a single battle victory, bridge, dam, railroad, or footprint on the moon to show for it. That's a lot of new money Feds are pumping into the economy. And press reports in America suggest that President-elect Obama may sign an economic stimulus package worth nearly US$1 trillion.

This can only go one way!

Here's what you need to know - and
what you need to do - right now...

An increase in the money supply almost invariably leads to price inflation. Each new unit of currency makes each existing unit of currency worth incrementally less.

When an ordinary investor catches on to this, he begins to spend his money more quickly before it loses value. He trades paper losing value for things that don't.

Businesses also raise prices to adjust to all the new money in the system. This causes consumers to spend money even faster, before prices rise again. Cash becomes like a giant national hot potato...

Where you get hundreds of thousands of people desperate to trade increasingly worthless paper for something that doesn't lose value day by day you get a vicious cycle of rising prices.

The investment angle on all
this is remarkably simple!

We're most likely standing on the verge of another inflationary period like 1979.

Cash - which has become so popular during the credit crisis - could soon give way to gold as the best investment. In fact, it's already beginning…

Investment demand for gold skyrocketed in the last quarter. Gold prices have risen over 300% since mid-2000. The world's hunger for gold broke new ground in the same period too. It soared higher than any other quarter in the last 4 years - by over 100 tonnes!

Investors are now turning to gold as a hedge against what they see as a coming inflationary firestorm. That's the key requirement for a 'gold mania'. And the gold mania is the fastest, hardest, last leg in a precious metals boom. It's the period of a super bubble.

This super bubble can soar higher and last longer than most people expect - which is why the biggest gains in gold are yet to come… The surge in demand for the yellow metal is only likely to increase over the next year. Why?

Governments worldwide have established their plan. They will inflate money supplies as much as it takes to support the global economy during a worldwide recession. That will add urgency to gold investment as paper money supplies increase and more and more currencies (including the U.S. dollar) become worthless.

That's why you need to get a piece of this action - now!

Hang on - why hasn't the gold
price rocketed already?

Fair question. There are two reasons gold prices haven't boomed yet. Two stubborn barriers to a super-bubble in precious metals remain… but not for long…

First, there's a ceiling on the gold price that keeps it from rising. The ceiling is made of new gold supply that can come on to the market at any time to swamp demand and bring down prices.

Two major sellers have added to the gold supply in the last 12 months. These two sellers have been able to bring enough new gold to the market to satisfy growing investment demand.

But if I'm right about what's ahead, that won't last.

Demand will soon exceed the ability of even large sellers of gold to keep the price this low. How so?

First, speculators have sold gold to cover margin calls. Hedge funds in particular want or need cash fast and sell whatever they own to get it. Yes, even gold.

It doesn't matter that gold has a reputation as a safe haven from inflation. Leveraged investors - those who made huge bullish bets on commodities with borrowed money - did the only thing they could do: they liquidated their trades and sold their commodity positions, including gold.

Research Capital Organisation noted in 2008 that gold has come under a lot of selling pressure from margin calls in particular. That has kept the price of gold down even during a period of record investment demand.

These margin calls won't last forever.

And the gold price has stabilised since the initial plunge. After bottoming just above US$700, gold is now US$844. It looks as though hedge funds have unwound their leveraged positions…

The launch sequence is in progress…

The second factor keeping gold from setting off on a super bull-run has been central bank selling. Central banks hold huge reserves of gold that they sell into the market. It depresses gold bullion prices for a time.

In fact, above ground Central Bank gold supplies are arguably even more important than new gold supply from gold miners. Just two percent of the entire gold supply comes from gold producers. The other 98% is above ground. It sits there until a financial crisis drives up demand for gold as currency.

Central bank selling is the final barrier between the current gold investment mania and a real super-bubble in the gold price. But only as long as governments keep selling their gold. And in 2009, I predict that selling pressure will evaporate.

But I'm not the only one…

JP Morgan analysts expect central bank gold sales to "fall quickly" in 2009. The reasoning is sound.

European central banks have a five-year agreement with an annual quota of gold they can release onto the market…

The current five-year agreement ends in September 2009.

When it expires, a major source of selling pressure which has effectively capped prices may be lifted from the gold market…

And then?

5…4…3…2…1… lift-off!

Honestly, I don't know how high the gold price could go. The cause - the most ambitious world-wide inflation of fiat money in history - has been unprecedented in size. In the U.S. alone the Federal Reserve's balance sheet grew by one trillion U.S. dollars in just a few months!

The Fed's creating new money to buy Wall Street's toxic assets. The effect of this growth in credit and money should be unprecedented. I'm talking potentially record gold prices here. Don't believe me? Look at that 1980 chart again.

And chew on this:

This time round the increase in money supply and credit is GLOBAL in scope. That means the rise in the gold price could be even higher - and happen just as quickly as it did back then… maybe even quicker...

What You Must Do NOW to make
back those retirement fund losses…

Serious investors ignore history at their peril.

The late 1970s was a dismal time. But it serves as a really useful pin in the map for you and I. More people will figure it out in time - but by then, the price may have already moved - and those "early adopter" gains will be all but gone.

Listen, it's up to you. I've picked out some no-brainer ways to ride the coming gold bull for all it's worth, as part of my Diggers and Drillers service. I'm happy to share them with you if you're interested in getting into this while we're still sitting on the launch pad.

If all goes to plan we're looking at a 175% PLUS gain from the 2009 gold rush… and that's just on the metal… In my detailed research you'll read about a related investment that could provide even bigger gains than gold itself!

It's exciting stuff for sure… and it's unlikely you'll get this kind of opening again - certainly not for decades to come. That's why you need to act on this now… every day wasted could eat into your profits!

Click through on the link below, get the latest issue of Diggers and Drillers and let me set out our gold gameplan for 2009!

Click here to read the Diggers
and Drillers
Gold Special issue!


Calculating Your Future Returns

It's important to remember that investing in shares can lose you some or all of your investment money. Please seek independent financial advice regarding your particular situation.

While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. The value of any investment, and the income derived from it, can go down as well as up.

For any investment, never invest more than you can afford to lose, and keep in mind the ultimate risk is that you can lose whatever you've invested. If in doubt of the suitability of an investment please seek independent financial advice.