Finally, the #1 Ranked American Investment Letter of
the Last 5 Years Reaches Australian Investors!
the Last 5 Years Reaches Australian Investors!
And We're Bringing You Our Most
Shocking Forecast Yet...
Shocking Forecast Yet...
The expert's case for why gold will rise at
least 310% from this historic price
least 310% from this historic price
...PLUS...
4 ENTIRELY NEW WAYS
to get rich on this trend..."
And you don't have to pay me one cent for the details...
Dear Opportunistic Australian Investor,
You may never see a better time to buy gold shares in the next ten years.
Over the next twenty four months-if the research my team of analysts and I would like to show you today conforms to historical patterns-the gold price could more than double from its current levels.
If you missed the first run-up in gold that took it to a 26-year high of US$730, there are at least three powerful reasons why the gold price will soon make a new all-time high. Not only do I predict gold will surpass US$1,000, my research tells me that in all likelihood, it will go to US$2,000.
Needless to say, there are still sizeable profits to be had in the gold bull market-even for conservative investors. For aggressive investors, the profits could be even greater.
In the following pages, I'll introduce you to four specific new ways for you to stake your claim as the yellow metal continues to rise. One has to be one of the safest methods of owning gold today. Another is a clever way for you to nab the next Newmont. And I'd also like to tell you about a small group of currently anonymous Aussie gold mining stocks that have the potential to triple in price within three years.
More on them in a moment.
First though, let me show you why I'm so confident in making the bold prediction of "Gold $2,000". It's not because I'm jumping on the commodities bandwagon. And it's not because I'm a hard-core gold bug, although there are strong fundamental reasons to buy gold on the dips. It's because of the chart below...
History Predicts a Huge Gold Rally
You see, the last time gold set a record high, global economic conditions were eerily similar. The Arab oil embargo of 1973 caused an oil shock. High energy prices (sound familiar?) sent economic growth reeling even as prices soared. Stagflation!
The U.S. dollar price of gold, oil, and other commodities sky- rocketed, and so did the shares of gold and resource stocks.
But there was one relationship in particular that, when applied to today's market, tells me that the gold price could more than double from its current levels.
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If the gold/silver ratio goes back to where it was in 1980, it's a
virtual certainty that BOTH gold and silver prices will soar.
For example, if gold stayed exactly where it is as I write today (about $583), a return to the historic gold/silver ratio I'm talking about would mean-get this-a silver price of about of US$40.
Does that sound unlikely to you? It does to me. Here's why.
It is highly unlikely the gold/silver ratio will return to its historic low through a flat gold price and a rising silver price. No. For reasons at least three reasons I'll show you in just a moment, BOTH gold and silver will rise in the coming twenty four months. And even if the ratio does not return to its historic low, gold prices may more than double.
Nothing is certain when you're forecasting the future. And past performance, as we all know, does not guarantee future results. But history IS a useful guide when you're trying to figure out where to put your money.
- "The bull market in gold is still young.
I would be buying every dip on the way up –
just like tech stock investors did throughout
the 1990s."
– Michael Martin,
R.F. Lafferty Securities, New York
Why Gold and Why Now?
Before you begin to think I'm stark-raving mad, let me assure you I'm not. In fact, the investors I represent have a combined 30 years experience investing in and writing about gold and resource markets. And there are some successful investors whose forecasts exceed even mine.
- William Gary, a publisher of investment newsletter Price Perceptions - with subscribers that include hedge fund Tudor Investment Corp. - forecast just last month that gold may top the record US$873 during the next three years.
- Newmont Mining, the world's largest producer of gold, says the price of the precious metal may rise to more than $1,000 an ounce within five years, as demand growth driven by Asia outstrips global supply.
- Metals consultancy GFMS says the gold price "would have to reach $2,014 in today's money, taking inflation into account, to reach its all-time peak of $850".
- And investing guru Chris Weber believes that we'll see gold reach $3,012 an ounce. That's a gain of 330% from the current price of $700 an ounce, turning an investment of $10,000 in physical gold into $33,000 or more...
That's a pretty optimistic forecast, but most experts agree: the chance of gold surpassing its all-time high of $850 an ounce is not only likely, but a highly conservative estimate.
But the big gains depend on locking in your stake of the windfall now.
I'll give you four ways to do exactly that in just a moment.
First, though, it's important you realize why gold is rising... and why it must keep rising... potentially to $2,000 and beyond.
Starting with the greatest fundamental driver...
The Number One Precious Metals Megatrend:
Skyrocketing Demand
Skyrocketing Demand
Forget war and terrorism for now.
Sure, they played a role in gold's rise to $700 and beyond. But what's really underpinning the gold bull is actually much simpler: demand.
Gold investment demand is now at a 35-year high... with desire for the yellow metal soaring to record levels here in Australia, in Britain and in China, Japan, the Middle East, Latin America and India.
There are three basic kinds of demand for gold, investment, industrial, and jewelry. All three factors are pushing gold prices higher. But what many investors may not know is that while industrial demand for gold and demand for gold jewelry follow economic cycles, the investment demand for gold is far more powerful than previous gold bull markets. Let me explain why.
First, the introduction of two new gold exchange traded funds (ETFs) in the United States has sent demand for gold soaring. Combined, both ETFs have accumulated 496 metric tons of gold. The ETFs have made it easier than ever before for individual investors like you and me you to buy a stock that tracks the price of gold directly.
These ETFs are also extremely popular with big financial
institutions. And that's the second reason investment demand for
gold is growing. "ETFs have changed the market for gold; they have
generated a new, broader, marketplace for the metal-a new kind of
investment universe-and this is very important," says Paul Walker
of London precious metals consultancy firm GFMS. "The outlook for
ETFs is potentially huge, gold holdings in ETFs could double or
treble: we're on the cusp of this over the next 18 months."$120 Billion by 2008
Here's an important point: don't be fooled by the volatility of the gold market. No bull market moves up in a straight line. Bull markets climb what investors call a "wall of worry." When volatility increases and prices fall quickly, inexperienced investors panic and sell. This is a mistake.
If you've understood the underlying trends right, corrections are nothing to lose sleep over. If anything, they are buying opportunities. Keep that in mind over the next eighteen to twenty four months. The corrections will come. But the underlying trend of rising commodities prices and investment demand for gold is very strong.
Investments by hedge funds and pension funds in commodities was $80 billion in 2005. Barclay's PLC expects that number to grow to $120 billion by 2008. "The underlying fundamentals across the industrial metals sector are still very, very strong. You've got to expect precious metals to make gains," says Kevin Norrish, director of commodities research at Barclay's.
Do you see what that means? Based on investment demand alone from ETFs and fund buyers, the outlook for gold is bright. The corrections cause newbie investors to be fearful. But that's exactly when you should be getting greedy! You can buy gold on sale during a long and strong bull market! And there are other sources of gold demand too.
A New Gold ETF For Simple, Safe Profits
Right now, according to the US Treasury, Stateside investors are buying American Eagles in record numbers. According to Paul Farrow in The Sunday Times: "Demand for gold bars and Krugerrands from private investors are at levels not seen for 20 years."
In 2005, the jewellery market absorbed 2,736 tonnes of gold, with a value of about $50 billion.
The rise in sales for jewellery has been particularly marked in India, where there is a middle class of some 250 million people of rising wealth. In India, gold jewellery has traditionally been a form of investment, where it is seen as an important ornament for women, as a display of status and as the reserve asset of Indian families.
As India gets richer... it will want more of the yellow stuff.
And demand could be boosted even further should a new gold-backed currency be embraced by 57 Islamic countries as is planned. I'll get to that in a moment. But let me show you why all of this good news for the gold price leads to one of the safest and most profitable ways to ride the gold boom in the years ahead.
Epic Boom Opportunity #1:
THE SAFEST WAY TO OWN GOLD
THE SAFEST WAY TO OWN GOLD
What's the safest way to own gold today?
That has to be the new gold-backed exchange-traded funds (ETFs).
These did not exist two decades ago, the first time legal gold investing set the international markets on fire. And now they've completely revolutionized the market for gold, in more ways than one.
The way they work, you buy shares. Just like you would in a fund. When you put money in, the gold ETF buys physical metal and stores it, to back your shares.
As if you had the gold itself in your own safety deposit box. Only the ETF saves you the trouble of ever storing, transporting or insuring the metal.
The first gold bullion ETF was actually launched here in Australia in March 2003. By the following November underlying demand here had reached 8.02 tonnes... worth well over $100m.
I've recommended the more liquid of the two-main gold ETFs to my American readers of Outstanding Investments. And I've got some recommendations to share with you on how to get started on this yourself, in your FREE copy of a report I"d like to send you. It's called Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!
But here's something you might not know about ETFs.
By cracking open the gold market to new metals investors, all the fundamentals of gold investing have changed forever.
Suddenly, young investors, experienced market players and retirement savers who want to invest in metals can do so. More easily than they ever could before. But all these millions of dollars in new electronic gold transactions have to be backed - by law - with real gold.
So the success of the gold ETF is a self-fulfilling prophecy.
The more investors it attracts, the more gold it buys. That cranks up pressure on the rest of the gold market. And gold prices tick higher, making the ETF look even more attractive all over again.
Take the ETF we've recommended in Outstanding Investments.
It first came out around October 2004, with a float of about AUS$220 million worth of gold holdings in its portfolio. In the first year, the total float ballooned to AUS$1 billion worth of bullion.
Now it's over US$7.2 billion!
That's nearly AUS$10 billion worth of physical gold that has to come off the market, just to back the fund's investors. The bigger that fund gets, the higher the gold price rises. And around we go.
If you don't own a chunk of this ETF, now would be a good time to get in.
Read all about it in Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! Just fill in your details at the end of this letter, and I can drop this FREE report in the mail for you immediately.
Now though, it's time to cover the other simple yet extremely powerful reason why you can expect to see a higher gold price ahead.
Precious Metals Megatrend Number Two: Falling Supply
It is basic economics that when supply rises faster than demand, prices rise. This why the news of rising demand for gold is so bullish. Taken alone, it would be a powerful argument to "buy." But take a look at the table on the next page...
The chart shows you that South Africa just edged Australia as the world's largest gold producer in 2005. But what you don't see on the table is a bullish fact for gold - global mine production has been decreasing since the year 2000.
Even gold mine production here in Australia dropped 4% in the first quarter of this year... and we're one of the top three producers in the world. One of our three biggest mining operations - the Porgera West Wall - was down 27% on its ounces.
This is economics so basic that a five year old could work it out.
Soaring demand + falling supply = a rising gold price in the years ahead.
There is a high likelihood Australia might displace South Africa
as the world's largest gold producer later this decade. This will
be a boon to Australian gold stocks-especially the smaller
exploration companies. Dr Sandra Close, managing director of
Surbiton Associates, says that strong gold prices are going to
continue to encourage Australian miners to develop new mines.
"Higher gold prices will improve the economics of projects still
under consideration and may well lead to new mines coming into
production.""Despite the poor start to the year," she adds, "with luck and with the new projects coming on stream over the next few quarters, 2006 output should at least match the 264 tonnes produced in 2005. At current prices, every tonne of gold is worth around $27 million and annual output is worth around $7 billion."
And here's the good news. As gold prices go up and Australian output increases, that's going to mean greater profits for Australian gold producers and the investors who own their shares. It couldn't be more simple really.
That's the fundamental backdrop behind rising gold prices. Demand is increasing. Supply is not. At least not yet. When it does, though, it's the Aussie miners who will be in position to profit, which is why I want to tell you about...
Epic Boom Opportunity #2:
5 Virtually Unheard Of Aussie Mining Stocks
Set to TRIPLE in Price Within 3 Years
5 Virtually Unheard Of Aussie Mining Stocks
Set to TRIPLE in Price Within 3 Years
Does this mean good times are automatically ahead for all Australian mining stocks? Not necessarily.
It's a dangerous misconception that it's easy to pick top performing mining shares in a gold bull market. Not so. In an environment where EVERYONE is talking up gold, it's sometimes more difficult to spot genuinely promising opportunities than it is when the gold price is weak.
It's certainly not prudent to get your share tips straight out of the Sydney Morning Herald. When times are good, a lot of these 'tipsters' are just rumour-reliant journalists wooed by mining companies trying to promote favourable press coverage for themselves.
Right now there are literally hundreds of gold securities listed on the Australian Stock Exchange.
To pick the right ones, you need to do your homework. For example here are some of the things I look for.
I have to be convinced that the company isn't weak. That its reserves are PROVEN and not just on paper. That it has the means of getting the gold out of the ground without spending a fortune and diluting the share price. That there's nothing dodgy about the way it does business. That it has management with the guts and vision to lead it straight to the top. That its finances are in great shape.
And that the share price is going to soar... outperforming those of its competitors... even in a climate when many gold shares are rising!
In Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! you'll discover five of my most promising gold stock picks.
If you invest in gold stocks, you're already familiar with names like Newmont, Newcrest, and Lihir. But with gold prices rising, the universe of attractive gold stocks listed on Australian markets is growing. In "Bullion and Beyond," you'll learn about two South African stocks listed in Australia that are poised to track the rising price of gold. You'll also learn about three Australian exploration companies in position to turn a rising gold price into profits, or even make themselves acquisition targets for larger gold companies. These companies are not typically on the radar screens of average investors. But they should be, including one Western Australian exploration stock that not only has great prospects right here in Australia, but recently partnered up with a Canadian company on a potentially lucrative project in Ghana. The most recent correction in gold prices knocked this stock down to a very attractive "buy" level. And there's more...
But let me remind you that it's not just gold. Remember silver? Well, the truth is, the supply/demand equation for silver is even more unbalanced than it is with gold. It presents you with a huge opportunity.
Epic Boom Opportunity #3:
EVEN BETTER THAN GOLD... SILVER!
EVEN BETTER THAN GOLD... SILVER!
When you send for your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! You'll also discover an opportunity I consider even BETTER than the exceptional profits waiting for you in the gold market.
I'm talking about the huge profits you also stand to rake in as SILVER takes off over the months ahead. See, over the long term, gold has sold for about 30 times the price of silver. And in 1991, you needed 98 ounces of silver to buy a single ounce of gold.
Right now, however, gold sells for about 58 times the price of silver.
Even if gold didn't budge even a bit higher, silver would have to rise at least 310% to match its historical average price. It would go from its current price of US$10 to a price of US$41. But if gold goes higher before silver does, that just means the built in bull market for silver is even greater.
What if gold rockets as high as I'm predicting in this report? Let's say $1,000.
Just to level off at average prices in relation to gold, silver would need to rise from where it is now to US$71 per ounce... for a breathtaking rise of 610%... or more than five times every dollar invested.
But you could make still more.
Just take a look at some of these fundamentals...
- The supply and demand dynamic for silver looks even better right now than it does for any other metal, including gold and platinum
- But wait... doesn't the huge rise in digital photography spell doom for silver demand? Not at all - only 8% of world silver demand ever came from the photography market
- What many amateur investors don't realize is that silver is one of the best electrical conductors in the world. But it doesn't corrode like other metals. Virtually all modern electrical switches, from batteries to computer circuit boards, use silver- based solder
- That means you need silver to make digital cameras. And iPods. And laptop computers. Not to mention dishwashers, microwaves, televisions, washing machines, refrigerators, and more
- The electronics industry alone uses up 44% of all the silver produced each year
- You need silver to make solder for most metal pipes, because it's also temperature resistant. And smooth. Which has also hiked up silver demand, because it's an excellent lubricant for jet engines
- Silver has anti-bacterial properties too. The water you drink or use to fill your pool was filtered using silver. Silver is used to help process almost all pre-packaged food too
- The $500-billion plastics industry couldn't exist without silver. It's the perfect chemical catalyst. You use it to make everything from adhesives and heat-resistant surfaces to toys, car parts and more
There are only 22 pure silver mines around the world. For 15 years straight, they've fallen short of meeting total silver demand. In the last two years alone, they were off by nearly 76 million ounces.
So why have silver prices stayed so low?
You pay more for silver now than you would have in 1999. But silver, like gold, is a metal that governments keep in reserve. And over the last few years, many governments - again, with America leading the way - have dumped millions of ounces of silver onto the market to raise cash.
Now, though, most silver stockpiles are gone.
Plus, unlike gold, when silver goes into industry, it gets used up. A few years ago the world had about 2.2 billion ounces of silver aboveground. Now it has about 300 million ounces.
Gold is only five times more rare than silver. What if the gold/silver ratio returns to the same level it did during the last inflation cycle? If the gold/silver ratio again goes to 14-with gold at US$2,000-the price of silver would sky-rocket 1,328%.
When the Gold/Silver Ratio Reaches
Historic Levels, Silver Soars
Historic Levels, Silver Soars
The key is finding a way to invest in the silver boom before prices take off.
It's not practical just to buy the bullion. Where AUS$12,000 only gets you about a 1 pound of gold... it gives you over 70 pounds of silver, at today's prices.
But guess what? You don't have to buy silver bullion. You can now buy a silver Exchange Traded Fund that works exactly the same way as the two enormously successful gold ETFs. If the silver ETF does for silver demand what the gold ETFs did for gold, get ready for fireworks. And remember, the silver supply situation is even more desperate than the gold supply. Price moves will be volatile and explosive. So will gains.
You'll find out about the world's best and safest ways to own silver in your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!
You'll also find out about a company we're tracking right now in my advisory letter, Outstanding Investments - which I'm launching here in Australia. My colleague trader Kevin Kerr even calls this particular investment, "the closest thing to an open-ended call option on the silver price."
If you get in on this now, I see us easily tripling or quadrupling our money overnight.
This company has a track record back to 1946. It's American, but don't worry - we'll tell you how to easily invest from here in Australia. It's got the largest silver resources of any publicly traded silver mining outfit in North America. Not to mention choice silver properties in Argentina, Mexico, Australia, Chile, the United States, Peru and Canada.
This company represents a true powder-keg play on silver. You'll want to move on this as soon as possible. Find out more by sending for your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!
You'll find the easy-to-follow details at the end of this letter.
But before you race ahead...
Allow Me to Come Clean:
Why I'm in Love... With Gold
Why I'm in Love... With Gold
My name is Justice Litle.
And I love gold. It's no secret. I always have.
In fact, I've actually spent a good chunk of my life specializing in metals markets. Not just gold, but all resource-based opportunities. And I've watched a lot of people get very rich in the process.
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That's why I've decided to launch my newsletter, Outstanding Investments, in Australia.
As I mentioned, the development of new mines could see Australia surpass South Africa in terms of production in the next few years.
And the decision by Newmont and AngloGold Ashanti to go ahead with the development of the Boddington mine in Western Australia is set to add another 30 tonnes of gold a year to Australia's output by 2009.
In other words: Australia is about to become the gold centre of the world. And I plan to help Aussie investors like you stake your claim in the bull market of a generation.
In fact, the small group of U.S investors I work with has already locked in huge gains on this trend and on gold's amazing resurgence into the public spotlight...
Including gains like the 332% we logged on Glamis/Francisco Gold... 668% gains on Metallica Resources... 249% gains on Coeur d'Alene Mines... 100% gains on Placer Dome... 235% on Newmont... and 353% gains on American Century Global Gold...
Plus plenty of non-gold gains, too.
Like 137% on KeyWest Energy... 174% on PetroChina... 160% gains on Western Oil Sands... and 179% gains on Talisman Energy...
Mark Hulbert - the US investment advisory industry watchdog - even named my advisory letter, Outstanding Investments, as his #1 top performer in America for the last five years.
I'm happy our strategy works. And I know for a fact it can work just as well for Australian investors. But now, suddenly, I find myself in a very strange situation.
Suddenly, everybody loves gold.
You can't read enough about it in the papers. Or on the news. Is that reason enough to buy more? Absolutely not. No more than you should buy any investment based solely on the power of the press- packaged mania brewing behind it.
So why am I writing you right now, URGING you to jump on the gold- backed investments we just talked about? A very smart question, with a very simple answer.
See, market mania or not, I have the very data that prove this is no fluke sitting right in front of me. And it tells me, without a doubt, we're headed for what could be the biggest explosion in gold prices in precious metals history.
With the recommendations I'll give you today, you can not only shore up your current wealth... but you'll have a unique chance to pile up a king's fortune over the months ahead.
And it will only take the next four minutes for me to show you how.
When we're done, I also want to rush you a FREE copy of my newest groundbreaking report, called Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!
Inside, you'll find everything you need to know about the five investments we'll take a look at here. I'll reinforce everything I show you here... then I'll give you a much fuller background on each of the five "hidden" gold and precious metal plays... plus step-by-step instructions on how to follow through on this for maximum gains.
Remember, this report is yours free. There is no charge. All you have to do to send for it is follow the easy steps at the end of this letter. Do that and you'll gain fast access to the following local high-growth gold opportunities...
Precious Metals Megatrend Number Three:
The Downfall of the U.S. dollar
The Downfall of the U.S. dollar
There is no more powerful rocket fuel for a gold bull market than a collapsing U.S. dollar.
The American dollar has lost over 30% against the Euro since 2001. International confidence in the U.S. economy is waning... with many foreign investors believing the dollar equals an "IOU Nothing" on the part of the U.S. government.
What's worse for the dollar (but better for gold) is that the dollar is losing the confidence of the world's central bankers and investors. Fewer of them want to own it. More of them are diversifying "out" of the dollar and "in" to other currencies like the euro or, in some cases, gold.
It started in early spring of 2006 in Sweden when that country's central bank, the Rijksbank, announced it was decreasing its dollar holdings from 37% of total currency reserves to just 20%. It also announced it would IN-crease its euro reserves from 37% to 50%. In simple terms, it increased its demand for euros and decreased its demand for dollars.
This caused instability in the dollar, which caused Russian Finance Minister Alexi Kurdin to say, "The international community can hardly be satisfied with this instability". He went on to question the dollar's status as the world's absolute reserve currency. Do you see where all of this is going?
America's huge trade and Federal deficits are spooking global investors. The dollar has lost is appeal as a store of value. And more than that, it's lost its psychological status as the best currency in the world. After the Stockholm announcement, central bankers in Qatar and the United Arab Emirates announced their intention to shift reserve away from dollars and into euros.
It's what you might call a currency regime change. And as David Bloom, a currency analyst at HSBC writes, "Beware regime change. When it turns, it will be totally poisonous for the dollar because the US will have to start paying investors for the risk of financing their massive deficits."
A falling dollar is good for gold. But it's clear, none of this emerging rebellion helps the ailing greenback. And indications are there's worse to come, for investors who don't own gold, that is. The truth is, the best way to hedge a falling dollar is to buy gold as safely as possible. You may be surprised at how simple that is. I'll show you how in a minute. But lest you think the risk to the dollar is yesterday's news, let me tell you about...
China's Secret Dollar Surprise
Fan Gang, director of China's National Economic Research Institute, stood in front of a standing-room-only crowd at the World Economic Forum in Davos, Switzerland last year.
In tortured English, he said...
The U.S. dollar is no longer, in our opinion, is no longer a stable currency. It is devaluating all the time, and that's putting troubles all the time. So the real issue is how to change the regime from a U.S. dollar pegging to a more manageable reference, say, euros, yen... those kind of more diversified systems...
And it's not just China. Malaysia is also shifting from the dollar. So is Indonesia. And Thailand. And possibly Japan. But who could blame them?
China and Japan alone own about $906 billion of the $1.1 trillion of US Treasuries held overseas.
But a weak U.S. dollar is a wasting asset. To the Chinese, it's starting to look like a giant pile of liabilities. Yu Yongding, who sits on the Chinese central bank monetary policy committee, told the China Securities Journal he was worried America would drop interest rates in 2006, putting pressure on the dollar and the yuan.
"More seriously," he said, "China's economy would take a big hit if the U.S. dollar weakened sharply due to such factors as a bursting of the U.S. property bubble. The loss for China's foreign exchange reserves would be extremely serious."
They won't hang on for long.
Publicly, the talk is of China moving more of its currency reserves away from the US dollar and to the euro. And that might happen. But the euro is only paper too, backed by its own debt problems at home.
The real story is China quietly converting those dollars into... you guessed it... GOLD.
China just recently cashed in about 2.4% of its dollar reserves to buy gold. It has a better track record than the dollar. In fact, gold has a better track record - historically - than any paper currency.
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Japan's central bank has also talked about cranking up its gold reserves. So have the central banks of South Africa, Argentina and Russia. In November 2005, Russia said it would hike up its gold reserves from 5% of total financial reserves to 10%.
That's double what it's already holding now.
To get it, Russia would have to absorb its own entire gold output for the next three years. That's a long time for the rest of the world to go without Russian gold production.
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Any more whispers on the news about this or the China gold reserve hike could send gold prices skyrocketing overnight. You'll want to be ready to profit on this surge as soon as you can... and there's a simple way to do it. It's as simple as owning the best gold stock in the world. But first, one last point
Gold's Safe Haven Value
The Milken Institute did a study that estimated the short and long-term costs of Sept. 11.
Outside of the loss of human life, the immediate hit to the United States was about US$53 billion.In the weeks that followed, another $47 billion disappeared thanks to lost economic output in the US economy. Plus another $1.7 trillion that disappeared from the US stock market.
Then the costs REALLY started to add up...
Airlines and aerospace, tourism and travel, hotels and motels, restaurants, the postal service and the insurance industry all suffered. Just in the first month, at least 125,000 Americans lost their jobs. Another 1.6 million jobs evaporated over the next year. And businesses retooling for the new "terror economy" had to spend an extra $151 billion.
This is where what's called the cost of distortion comes into play - which is where the ripple effect from a shock event like this can cause people to behave in strange ways for a long time to come. And all of this is good for gold.
Think about it.
Air travel falls. Tourism falls. The number of tourists visiting Bali dropped 48% in the year after the first horrific bombing, and it's not come close to recovering. Trade suffers and foreign investment dries up. In 2002, 29 ports on the US West Coast shut down for two weeks. Two hundred ships, carrying over 300,000 shipment containers, just sat in the water.
Waiting.
And remember, this is only one event we're talking about.
You can never know how much a "war on terror" will cost.
Because fighting terrorism is like fighting a hurricane. You can see it forming on the radar screen. You know when it's headed your way. But you don't know what to expect when it lands. Or how much it will cost you over time.
Bottom line: the hidden cost of terror causes instability. Instability destroys faith in the U.S. dollar, the world's reserve currency.
But instability also makes the concrete value of gold, oil and other commodities take off...
Gold is the ultimate "safe haven" investment. As long as the world is vulnerable to terror and governments go deep into debt to fight it AND try to run business as usual, gold will become increasingly popular as sane and stable store of value in an insane and unstable world. And there's one very sane, very safe way to profit from that.
Epic Boom Opportunity #4
A LITTLE-KNOWN WAY TO
NAB "THE NEXT NEWMONT"
A LITTLE-KNOWN WAY TO
NAB "THE NEXT NEWMONT"
If you know mining, you know Newmont.
It's the Microsoft, the Google and the Wal-Mart of gold mining companies.
In Outstanding Investments, we're up 235% on our Newmont shares. We recommended them in 2001 - well before gold became popular.
And this, after making 249% gains on Coeur d'Alene Mines... 332% on Glamis Gold... and 668% on Metallica Resources... just to name a few.
You're too late to get in early on any of these companies.
But you can still lock in "five-bagger" and even "10-bagger" gains on mining stocks, once you know exactly what to look for.
Most gold investors think you judge mining stocks by what they have underground. But that's not the only place to look for buried treasure. You can also find hidden advantages in a mining company's accounting ledger.
In fact, there's one secret edge the best mining companies have buried in their books that you won't find anywhere else. Know how it works and you can target the mining companies with the most room to go up, at anytime in the gold boom-or-bust cycle.
Let me show you what I mean...
The Weight of "Invisible Gold"
See, many mining companies - especially the bigger, better-known ones - make bets on the fluctuating price of gold by "hedging" their reserves. They use futures trades to sell their gold forward and lock in a high gold price.
It's a great idea if you're looking at a falling gold market. But it's a major miscalculation if the market is headed up, like the one we're looking at today.
With gold heading higher, you want to invest first in the companies with unhedged reserves. I'll track these companies for you in future issues of my award-winning resource letter, Outstanding Investments.
Let me just show you some of the other special angles you'll get on gold mining shares over the boom cycle ahead. For instance, one thing my readers and I watch closely right now are the South African miners.
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Plus, most of the South African companies also have much bigger stockpiles of gold reserves, relative to what the companies are worth on the public exchange. When gold prices soar, so will these miners' net asset values. Which will also hike up the shares.
You'll learn more about the very best South African mining stocks - and how to easily invest in them from Australia - in upcoming issues of Outstanding Investments.
But here's yet another great gold opportunity.
My American readers and I also watch the resource-rich Canadian companies closely. Thanks to the boom in commodities across the board, Vancouver and Alberta are no longer the "Wild West" for resource stocks.
Last year, the Toronto index shot up 20%. And this year, over $112 billion worth of Canadian companies - mostly commodity-based - are now targeted for takeovers. When that happens, you can double or triple your money on these shares virtually overnight.
You don't have to do the work to dig out these buried opportunities. I'm offering, right now, to do all that work for you. Both in your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! and in the three month committment free trial of my advisory letter, Outstanding Investments, that I'd like you to have, gratis.
Details on how that works in just a second.
But first, just in case you still need more proof that gold just can't go anywhere except UP over the months and years ahead, let me offer you the following breaking story...
Precious Metals Megatrend Number Four:
Brace Yourself for "PEAK GOLD!"
Brace Yourself for "PEAK GOLD!"
You've probably heard of "Peak Oil."
Brace yourself for "peak gold."
That's when you reach the peak amount of a raw resource that the Earth can cough up. With oil, the United States passed that line in 1972. Worldwide, we should pass the peak of our global oil supply sometime this decade. Already, energy prices have soared in expectation.
With "peak gold," it's much the same. We're not talking about politics now. Or even currencies. We're just talking about how much gold is left unprocessed and underground. Gold was already rare, but now it's more so. And the more we take out, the rarer still it will become.
We touched on the supply/demand situation for gold earlier.
What I didn't tell you is that it's also getting much harder to get the quality of gold that used to be so much easier to find. For instance, miners used to pan for gold in streams. Today, just to get enough gold for a wedding band, you need to crush up to 20 tons of rock!
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Gold goes into computers, cell phones and satellites. It's used in medical lasers, industrial lasers and in spacecrafts. It plays a major role in medical research. It's even used for treating some diseases.
What happens when demand goes up but supply falls off the cliff?
Prices go up!
Gold production is down today in 11 of the top 20 gold mining countries... including South Africa, the United States and Australia, the world's top three gold producers. Just that slashes 36% of newly mined gold from world supplies.
Plus, eight of the top 15 gold mining companies have also seen big dips in production. Six of those companies are among the top 10 world producers of gold.
Tough new environmental laws and 20 years of low mining investment don't help. But it's really geology that's conspiring against the miners most. Nobody can find the big gold deposits anymore. It looks like they're all tapped out.
With gold prices up, they're looking. More holes open up in the ground. More tons of rocks go through the mills. But so far, the average quality of the gold they're finding has gone down.
The low-hanging fruit of the gold mining universe - the easy deposits and rich mines - have started to disappear. Gold's already rare. But it's getting more rare by the day. This means tremendous gains for you, especially on the five alternate "epic boom" investments I told you about today.
I urge you to move on these... as quickly as possible!
Here's How to Get a FREE Copy
of This Report
of This Report
Let's just run through this again.
Inside the FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! you'll get...
The safest way to make gains from rising investment demand for gold.
A powder-keg silver mining play that could explode threefold or more as the same metals megatrends light an even bigger fuse under this practically forgotten "other" precious metal.
Five hidden and virtually unknown Australian mining outfits who I believe could triple in price as Australia marches towards being the world's number one gold producer.
An easy way to buy a stake in virtually all of the most stable and well-known gold companies... with a savvy move that's already given my readers hefty gains of 353%.
Access to the hidden telltale advantage buried in the accounting records of mining companies ready to soar. Knowing this protects you from picking the wrong shares.
Getting a copy of this FREE report sent to you is easy. Just click Subscribe Now at the bottom of this letter to fill in the special offer form. But before you do, let me show you what you'll find in five more investing reports I want to send, also absolutely free...
Five More "Front-Row Seats" for the Epic Resource Explosion
Ahead
Aside from your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! I've put together another five special investing reports that I want you to have, at absolutely no charge...
Petrocalypse Now: 3 Ways to Profit From the Worldwide Terminal Overload in Oil Production - Discover three brilliant new ways to pile up quadruple-digit gains on the worldwide oil crisis already deeply under way.
Turning on the Juice: Power Plays for the Electricity Crisis Ahead - These three little-known companies are actually front-runners in the burgeoning new "liquid coal," "next-century nuclear power" and other energy fields that will boom as countries like China, the United States and even Australia face the greatest electricity crisis in history.
Two If by Sea: Shipping Stocks That'll Sail on the China Boom - Without cargo shipping, the entire tide of commodity riches headed toward China screeches to a halt. New shipping regulations reveal the cargo companies that will profit most. You'll find them all named and detailed in this FREE report.
Riding the Liquid Natural Gas Boom to Triple Your Money - Could liquid natural gas (LNG) be the solution to Peak Oil? Maybe. And this single virtually overlooked company could outpace the rest of the LNG sector, for money-tripling returns. Yours FREE.
I've seen to it that each of these special FREE reports - for a total of five reports in the Outstanding Investments "Bullion and Beyond" Library - will help make the resource portion of your portfolio that much fatter during the epic commodities explosion ahead.
You don't pay for any of these five FREE reports. They are yours free. And there's more...
Every week, I'd also like to send you a FREE commodities investment update, straight to your e-mail account. You'll read about the stocks in Outstanding Investments. Plus other hot opportunities I have percolating on the stove. No charge whatsoever.
If you're not a subscriber already, I'll give you a FREE subscription to the highly praised and widely read The Daily Reckoning. It's the best source of daily investment insight in the world, with over 500,000 readers.
And of course, as I said, all five of the FREE reports in the Outstanding Investments "Bullion and Beyond" Library - yours for the asking. Just tell me when you're ready to get started.
Why just give all this away?
Because, naturally, there's something I want you to do for me in return...
I Also Want You to Try My Best Picks
FREE for the Next 3 Months
FREE for the Next 3 Months
As I said, I'm launching Outstanding Investments in Australia.
And you have this letter before you because I believe you are like me. I believe you know, as I do, that while $1 million worth of dot-com stock certificates isn't worth much more than kindling these days...
Raw real resources like copper... cotton... platinum... silver... natural gas... steel... oil... coal... and especially gold hold real and tangible value for civilization.
And that's what my monthly advisory letter is all about.
While some stock investments can crash and fall to zero... we cannot exist or do business more than a few weeks, a few days or even in some cases a few hours... without the commodities that matter...
Oil to burn... land to stand on... copper pipes and wires in our walls... circuitry in our computers... electricity to power our lights, our appliances, the Internet... lumber, steel and grain... and precious metals like gold and sliver to help us protect our wealth.
We've always stood for making a fortune in rich resource investments, even when it wasn't popular.
But over time, the strategy has consistently paid off...
With a 151% gain on Wheaton River Minerals... 162% gains on Intrepid Minerals... a solid 332% gain on Glamis/Francisco Gold... and 668% gains on Metallica Resources, all in 2002...
Plus another plus 105% gain on Gentry Resources... 151% gains on Tocqueville Gold... 235% gains on Niko Resources... and 249% gains on Coeur d'Alene Mines, all in 2003...
116% gains on Cameco... 174% gains on PetroChina... and 270% gains on the July silver calls, all in 2004...
In 2005, 107% gains on Norsk Hydro... 108% gains on Anglo American PLC... 160% gains on Western Oil Sands... and an impressive 179% gain on Talisman Energy...
And just now, in 2006... 179% gains on Tesoro Petroleum... another 225% again on Coeur d'Alene Mines... 235% so far on Newmont Mining... 353% gains so far on American Century Global Gold... 462% so far on Suncor Energy... and another 502% and climbing so far on Valero.
What I'd like to ask you to do - in return for the FREE five- report investing library, the e-mail alerts, and the rest of what I've offered - is simply to try three FREE months of my service, Outstanding Investments.
Let me show you month to month what I'm watching, what I'm recommending and what to do next with the holdings we'll track each issue in our No. 1-ranked, resource-focused letter.
We'll shore up our wealth safely with bullion investments.
But I'll also walk you through even better and easier ways to get in on other megatrends. You'll get to keep all three issues. Plus everything else I'll send. And if you don't like it, I'll refund your money. No questions asked.
Sign up. Read and profit. Share it with your family. Then wait.
And watch the gold cycle. If you ultimately decide I've missed the mark, you lose nothing and get your money back. While keeping every last bonus or issue we've already sent.
I hope that sounds fair to you.
More important, I hope it sounds like something you'll feel ready to act on right away. I'm confident we've locked into this soaring commodities cycle for the long term. But I'm not so sure I can promise you that the early and best phase of these opportunities can last much longer.
Here's all you need to do...
Click here and fill your details in on the No-Risk Secure Online Application.
Upward pressure on the gold price is already mounting. I hope to hear from you soon...
Sincerely,
Justice Litle, Senior Analyst
Outstanding Investments
P.S. If my 5 unique and easy ways to get rich on the gold bull don't satisfy you in any way... then I'll refund you every penny and you will have lost nothing.
So why not give Outstanding Investments a shot? Simply click Subscribe Now below and fill your details in on the trial offer form, and your 5 free investment reports will be with you shortly.