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On Thursday afternoon, I set off with my wife Susan, my son Andy and his wife Zhanna for an afternoon at the beach in Hollywood, 15-minutes north of our home in Aventura. We stopped at a tequila bar on the boardwalk and ran into Dennis (the worm) Rodman, who some 15-years ago was making headlines, along with Michael Jordon, on the Chicago Bulls championship teams. Dennis has been larger than life, since his pro basketball days, and is remembered for, among other things, a brief marriage to Carmen Electra and a hot affair with Madonna. Rodman spent a couple of hours with us, drinking tequila, smoking cigars and eating burgers. He said “he was worth over $300 million,” and “his job was making money.” That being the case, how come I had to pick up the bar tab?

He definitely had a fascination with Zhanna, – and is pictured below with Susan, Zhanna and Andy.

Andy now understands why we are thriving in the warm weather and cosmopolitan lifestyle here, in South Florida. It is hard to be bored here in the Miami area. It is a great place to spend the winters and write this daily.

I finally found the perfect chart to explain why gold is destined to go much, much higher. Look at the correlation between gold and our national debt. Our national debt is a run-away train with no brakes. It can only go UP and UP and Up. Where do you think gold will go as this debt monster continues unabated?

John Williams was interviewed on King World News and said:
Despite the September 5, 2011 historic-high gold price of $1,895.00 per troy ounce, and despite the multi-decade-high silver price of $48.70 per troy ounce, gold and silver prices have yet to re-hit their 1980 historic levels, adjusted for inflation. The earlier all-time high of $850.00, would be $2,466 per troy ounce, based on December 2011 CPI-U-adjusted dollars, $8,783 per troy ounce based on SGS-Alternate-CPI-adjusted dollars.

In like manner, the all-time high price for silver in January 1980 of $49.45 per troy ounce still has not been hit since 1980, including in terms of inflation-adjusted dollars. Based on December 2011 CPI-U inflation, the 1980 silver price peak would be $144 per troy ounce and would be $511 per troy ounce in terms of SGS-Alternate-CPI-adjusted dollars.

Here is the link to the Jim Dines interview over at King World News. Dines, “The Original Gold Bug,” is worth listening too. He was the first to call attention to the gold and silver industry in the early 1970s.

James Dines – This Will be a Dangerous Collapse & Endgame

Here is an excerpt from our Director of Marketing, Ranting Andy Hoffman:

As for “SPROTT,” I’m referring to the $303.6 million equity offering by the Sprott Physical Silver Trust (PSLV), soon to be $349.1 million when the greenshoe is exercised.  Per yesterday’s RANT, the last time PSLV did an offering – for $575 million in November 2010 – silver commenced a six-month run from $25/oz to $50/oz, before the Cartel, in Hunt Brothers fashion, attacked the PAPER market with six margin increases, countless naked shorted contracts, and even a fake “bin Laden killed” rumor.

Assuming the institutional PHYSICAL market is as tight as it appears, I would not be surprised if Sprott’s attempt to obtain delivery of these ten million ounces causes another material run-up.  If that occurs, the Cartel will NOT be as lucky as a year ago, so please consider whether you have a full position in PHYSICAL silver before we find out.  I cannot guarantee anything, but I do feel the tea kettle vibrating – or perhaps that’s just financial tremors reverberating around the world.

Due to the “SPROTT” offering, the Cartel was especially vigilant in slowing the pace of gold and silver’s rises, well aware of what I wrote above regarding PSLV’s November 2010 offering.  Unfortunately for the bad guys, what I wrote yesterday about the KEY ROUND NUMBER of $1,650/oz starting to look more like support than resistance is appearing more and more true……as is my thesis that the very KEY ROUND NUMBER of $30.00 is changing from resistance to support.  Given the maniacal, exponentially growing pace of worldwide MONEY PRINTING, silver’s still heavily oversold position (15% below its 200 DMA of $36/oz), and the enormous PHYSICAL demand of the PSLV order, it is hard for me to envision a significant move below $30/oz in the coming weeks.  We’ll see, but I call it as I see it.

***

As for the mining stocks, the HUI barely turned positive at the close, as sentiment following the recent weeks’ drubbing of key stocks such as HL, NEM, and KGC has more and more investors terrified of the sector.  Remember, the goal is to PROTECT YOURSELF from the coming hyperinflationary depression, and thus far mining stocks have not only failed to do so, but conversely, caused significant financial damage.  PHYSICAL gold and silver will rise more than 99% of all investments in history, and will do so with essentially NONE of the risks inherent in mining stocks.

While still on the topic of PMs, I wanted to include today’s KWN interview with my good friend John Embry, the top Precious Metals portfolio manager in Canada.  He has been on board the PM train for as long as it’s been running, with a keen sense of market forces lurking beneath the surface.  Last January, he called the year’s gold bottom, and in recent weeks claimed gold would likely NEVER trade below $1,500/ounce again, an assertion I cannot find fault with.  He is expecting the imminent Cartel breakdown this year, and if he is even half-right you will wish you had prepared for such an event.
John Embry – Gold to Rapidly Triple in Price on This Move.

Backwoods Jack is back at it again:Does ranting Andy have a current license to sell securities?  You keep
referring to Wall Street.  Who is Wall Street?  Apparently, the ETF`s
own more gold than all the major central banks combined. Are they the
manipulators you speak of?  If so, and they are part of Wall Street,
then Wall Street is responsible for the rise of Gold and should not be
condemned. It`s the US citizen that owns the bulk of Gold in this
country, is it not? Since 1940, factoring in inflation, the stock
market has greatly outperformed the price of Gold during that period.
I am not inferring that Gold is not a good investment today.  I
believe it is and should be part of ones portfolio along with various
stocks and cash.  If some investors think GS controls the markets then
why don`t they buy GS stock?
What do I know, here in the Backwoods!!!!  Jack

Dear Backwoods,
“Wall Street” is the big bullion banks – JPMorgan, Citi, HSBC, GS, etc.  They control congress with their lobbying money and appointments, including the Sec. of the Treasury (Paulson and Geithner) and other key slots.  They control the media.  They are so powerful that no one ever goes to jail from one of these firms, (including GS alum, John Corzine) unless they are a low underling.  Madoff’s rip-off was peanuts compared to MF Global’s theft of client money (Corzine). Madoff is wearing stripes and Corzine is probably playing golf in Florida or the Bahamas.

I don’t know where you get your information – but wherever it comes from, it is laugh-able. Central banks own, according to their records (not accurate), over 31,000 tonnes of gold.  GLD owns two or three thousand tonnes.  JPMorgan and HSBC control the price of gold on the Comex by always being short tens of thousands of tonnes of gold, and even more in silver.  US citizens own so little gold it is not worth mentioning.  How many of your friends or family own physical gold – in any quantity?  Not one in a hundred or even less own physical gold.  The main reason is the always gold-negative press from the Wall Street big bank controlled media.  You are listening to the wrong sources. You choose people with no real understanding of the gold and silver market and ignore the advice I give you from real experts.  If your source of information is so smart about gold and silver how come they weren’t buying it hand over fist for the last 11 years and urging you to do the same?

Now, I’ll address your lame email. Your information and facts are so screwed up they make me dizzy.  First of all, gold was pegged at $35 an ounce from 1933 to late 1971, so when you talk about the stock market vs. gold from 1940, that’s ridiculous.  The time frame should start on August 15, 1971 when gold was de-linked from the dollar and no longer “fixed” at $35 an ounce, and left for the marketplace to determine its price, as it does with stocks.  Also, the Dow is constantly revised, with the poor-performers dropped off (AIG, C, GM, and EK have been deleted), or the Dow would be down big-time in the last decade.

Here are the numbers and try hard to concentrate on the FACTS. Maybe they will open your eyes to how foolish your statements sound.

I spent a lot of my time getting these FACTS for YOU, to refute your nonsense. They totally invalidate your contentions.

Gold vs. Dow Jones Industrial Average since 1971! U.S went off Gold Standard – August 15, 1971!

Gold in 1971 = $35 … Gold today: = $1,670.

Dow in 1971 (December 31) = $890.20 … Dow today: = $12,720. 

Gold has gone up over 48 times since 1971 as of January 20, 1971. 

Dow has gone up 14 times since 1971 as of January 20, 2012.

Dow’s all time high 14,164.53 on October 9, 2007. 

Dow’s all time high has showed an increase of 15.9 times since 1971.

Gold’s all time high was 1900.30 which was an increase of 54 times 

Important to note: General Electric is the only remaining stock of the original 12 stocks that formed the Dow Jones Industrial Average. Every time a Dow company fails, which has happened many times, they are replaced with a new hot firm like Google or Walmart.  Even with that advantage, gold has done better.

The Dow Jones Industrial Average was founded by Charles Dow on May 26, 1896.

Gold has been around much longer than the 115 years of the Dow. Thus this could be one of the most shocking revelations of our time why do so few own gold??? 

To add more proof – the S & P 500, it was 102.09 in December, 1971 and is currently 1315 for a gain of 12.9 times compared to gold’s 48 times.

I am using the correct time frame – gold was only in a free market to rise or fall since 8-15-1971.  That is the time line anyone who knows anything about gold would use in this discussion.  Your sources are so lame, they should never comment on this topic.