In today’s Daily, I am devoting a lot of space to comments by Jim Sinclair and an article by Ambrose Evans-Pritchard. I realize that the vast majority of Americans have no idea how bad the economy really is. There can be no sustainable growth without readily available bank credit and an expanding money supply. The charts that are presented, along with the Evans-Pritchard article, provide indisputable evidence that there is no recovery. Sinclair comments that it will be generations before this is sorted out. Generations! How many times does he have to warn you to acquire physical gold, which is the only financial asset that will survive intact. Richard Russell agrees and says “by the end of the year, we won’t recognize our country.” These “geezers” have been around for a long-time and have seen it all. They are the ones offering you sound advice, not the Pollyanna’s on Wall Street. Not your financial advisors and money managers who are telling you it is o.k. to stay in stocks. In fact, their advice, for a decade, has cost you dearly. There has been NO growth in the stock indices. Why didn’t they move you into gold, years ago? You could have increased you net worth by 400% in gold or silver, but instead were kept in the dark and are lucky if you broke even for ten years.
I understand that this is harsh! People tend to shut-out these kinds of warnings and bury their head in the sand. Look at the charts and see if you can find even a shred of evidence that my warnings are extreme or bad advice. If Celente, Sinclair, Russell Willie and yours truly are correct, there is very little sand left in the hour-glass. We are talking months, not years here.
My least favorite words are “I told you so.” I can only hope that you are listening now and doing whatever you can to prepare for the difficult changes that lie ahead. Any gold or silver that you can buy now, even small amounts, is better than none.
People often tell me that “I don’t have any money to buy gold.” When I question then further, I find out that they have stocks, cash in insurance policies, IRAs, 401Ks, and CDs. Any or all of these represent funds that can be used to purchase gold or silver. If you want to navigate through this with your net worth intact, then move out of as many of these areas as you can and into the safety of gold.
I am not touting gold as an “investment,” or a way to get rich quick. I am pointing out that if you keep your wealth in anything dollar-denominated, without a large cushion in gold, you will have no protection against the dual forces of deflation and hyperinflation that are bearing down upon us. Deflation will decimate your stock portfolio and real estate investments. Hyperinflation (the destruction of the Dollar that will happen when foreign holders of our bonds dump them and head for the door) will greatly diminish the purchasing power of your cash, CDs, money market funds, annuity payments, Social Security checks and fixed amount pensions. Without gold and silver, which will rise dramatically in these circumstances, to offset this, you will have no way to protect yourself.
Investing in foreign stocks or currencies will not be enough. As the US goes, so goes Europe and Asia and the rest of the world. No one and no place and no currency will be immune from this. There is no place to hide. Do what you can now. Don’t buy anything that you don’t NEED. Put off that vacation or new car. The dollars that you save will buy you a lot of gold and silver. You will need it.
And if I’m wrong, then we can all laugh and throw a party – and you can sell your gold and silver for a lot more than you paid for it. Remember, gold has been the number one performing asset for the past 10 years and it is poised to rise rapidly from this point forward. Review Warren Bevan’s “cup and handle” chart, presented in yesterday’s Daily. It is up, up and away from here.
I am offering you a win/win scenario. Ignore it and the probability that you will lose big-time is too great to ignore.