 |  | 
 
This special Austin Report follows the surprising news that India has purchased more than half of the International Monetary Fund's allocation for Gold sales.
As the chart shows, Gold has now rolled past $1,100 an ounce having now quadrupled in price since 2001... and the Gold Bull rolls on!
If the outstanding profits created in the current Gold Bull Market are not enough to convince you of the need to own Gold, then consider carefully the driving forces that have caused Gold to double in price and then double again.
Asia Diversifies Out of Dollar into Gold: In November, there was shocking news that India's central bank had purchased 200 metric tons of the IMF's Gold allotment. The announcement alone drove up Gold prices to an historic high of $1,096 an ounce. This follows China's news release this summer reporting it had doubled its Gold holdings since 2003 to a total exceeding 600 tons. Clearly the world is moving out of U.S. Dollars and into Gold.
Cash Money Rushing to Hard Assets: Individual investors are again caught in the Federal Reserve trap of being paid historically low interest rates on checking, savings, CD’s, and money market funds. Some $1 Trillion is parked in money market funds earning little to nothing. As a result, we feel the Gold and Silver markets are benefitting as alternative forms of money to poor performing cash equivalent assets.
Stimulus Designed to Inflate Markets: Congress and the Federal Reserve pumped in $1 Trillion to save the banks, mortgage companies, automakers and insurance companies from deflating and crashing. Eventually, the economy will either not recover quickly or create another bubble-and-crash to follow the long string of Fed mistakes from the dot com bubble of the 90s to the housing bubble of the 2000’s. Gold is sure to survive either the inflation created by the massive deficits or the new wave of crashes.
Gold Quadrupled: Since 2001, our clients who purchased $100,000 worth of Gold bullion have watched their investment multiply to $400,000. Gold investors have had a remarkable decade of success far outperforming all traditional assets. (Past performance is no guarantee of future value.)
Gold is the Ultimate, Alternative Investment: The poor performance of the major U.S. Stock indexes over the last 10 years has left institutional investors, mutual funds, hedge funds, state retirement pools, and other money managers with no choice but to reconsider the value of including precious metals into their strategies.
Gold is a Hedge Against Financial Crisis and Inflation: We have always recommended Gold first and foremost as an insurance policy against the financial risks of a Stock Market Crash or a financial meltdown. Gold’s strength in the face of the current economic crisis cannot be overstated. But, where Gold has always performed the best is when Governments create excessive paper dollars, thereby unleashing inflation and/or hyperinflation-- years in which inflation exceeds 10% annually.
Gold Remains A Stealth Investment: Quietly hidden away in the back of our safety deposit boxes, our Gold Coins and Gold Bars have been sitting in the dark, out of the limelight generating huge profits. Yet, the vast majority of investors have totally ignored Gold that flies stealthily under the radar. In the near future, we feel Gold will become front page news and a widely held investment once again.
Gold is the Anti-Dollar, Anti-Government Investment: At this writing, the U.S. Dollar has lost almost 98% of value since year 1913. The Federal Government has used, abused, and destroyed much of the buying power of the U.S. Dollar. As a result, Gold serves as the best Anti-Government investment to deny Congress control of your money. No single Government on the planet controls the value, strength, or buying power of Gold.
Demand Building across the Board: Worldwide demand for Gold jumped by $21.3 million in the second quarter, a 30% bolt, according to the World Gold Council. Demand for Gold ETFs (Exchange Traded Funds) rocketed 1,315% from Q2 ’08 to Q2 ‘09... another trigger for the coming Gold boom.
 Gold/Dow Ratio Signals $8,000 Gold: During major Gold bull markets (and corresponding Stock bears), Gold and the Dow converged at a 1-to-1 ratio. During the last Gold Bull, the Dow sank to 850 and Gold rose to $850. The Dow is now over 10,000. But even if it fell to 5,000, we could see $5,000 Gold before this Bull Run is over!
U.S. Treasury Dept. Signals $5,468 Gold: Currently, the U.S. government holds about 286.9 million ounces of Gold. It has printed about $1.569 trillion worth of paper dollars. If each dollar were backed by Gold, the current Gold price would need to equal $5,468 an ounce.
Gold has $6,192 Potential Based on Past Bull Market: During the 1970s, the U.S. was plagued by excessive debt, massive Government spending on the War on Poverty and the Vietnam War. Politicians, who were unwilling to pay down debts by increasing taxes or reducing spending, resorted to inflation to pay down the debt. From 1971 to January of 1980, the price of Gold responded by multiplying 24 times. The exact same conditions face us soon as politicians have inflated the U.S. money supply in excess of 120% in the past year. We believe that a total 24-fold increase in Gold, as we saw in the 1970s, could easily take the $258 low of 2001 to a price target of $6,192.
OK, for those of you counting, these are 12 fantastic reasons to buy Gold today and not just 10. If you own no Gold at all, you should buy Gold right away while there's still time to move your paper dollars into the safety and security of Gold.
Call 1-800-668-8771 to speak with a Gold Specialist
|
|
Disclaimers: Austin Rare Coins & Bullion has prepared information on this site for the private use of our readers. It should not be taken as personal financial advice. The information herein is obtained from a variety of sources that we believe to be reliable, but we cannot guarantee the accuracy or that information has not been condensed or may be incomplete. All opinions expressed by the editors of The Austin Report and those expressing opinions are subject to change without notice. We are not financial advisors. The information about future predictions, projections, or financial advice could prove to be unprofitable. This firm is specifically in the business of selling Gold, Silver, platinum and rare coins to the public and offers its opinions from that viewpoint. We generally make available news and opinions that relate positively to our markets and do not seek to present a balanced view of the investment markets. We advise that you seek out information from a variety of news sources before making any investment decisions. It’s important to always remember that past performance is no guarantee of future value. These products may not be suitable for every individual as the value of Gold, Silver, and rare coins go down as well as up in value. |
|
