Peter's Schiff's Gold Report Header V3

Dear Gold Investor,

 

Welcome to the March edition of my monthly Gold Report.

 

Gold started strong in February with news that the eurozone would relent and start the printing presses to bail out Greece again, yet the yellow metal finished lower as Fed Chairman Bernanke threw investors off the scent of QE3. Many investors seem to be numb to the inflation already created and are waiting for even more as a signal to buy gold. That means it's a good time to buy for those who know that inflation is coming.

 

Gold settled at $1,770 as February closed, after touching a high of $1,783, yielding a 1.72% gain for the month. It has since corrected to $1,705 on misplaced optimism for economic recovery. Silver peaked at $37.23 to close out the month, a 10% increase, but has since dropped to $34.11 in the early days March. Again, I think this dip will be temporary. 

 

Warren Buffett continues to make headlines in opposition to gold and in favor of punitive taxes on the wealthy. In my commentary, I take a closer look at Buffett's worldview. Is he an impartial sage looking out for the best interests of his fellow citizens, or is he really looking for his next government handout?

 

Meanwhile, Jeff Clark's article tells us another secret about sound money - it has a message for all investors, if they choose to listen.  

 

And Mark Motive of Plan B Economics examines gold compared to the S&P 500 as one way to gauge how far this bull has left to run.

 

Finally, this month, I am proud to introduce a new feature in which we answer our customers' questions about buying and owning physical precious metals. If you would like to submit a question for a future issue, please email me at info@europacmetals.com.  

 

Cordially,

 

Peter Schiff

CEO

Euro Pacific Metals, LLC

 

This report is designed to give you an edge when buying or selling, and, of course, we hope to have your business. To speak with a Precious Metals Specialist, call 1-888-GOLD-160.  

BUFFETT'S BURSTING BUBBLE
by Peter Schiff, CEO of Euro Pacific Precious Metals


Peter Schiff

The gold doomsayers have found their champion in the media's favorite financial advisor and one of the world's richest men. Warren Buffett, the man dubbed the "Oracle of Omaha," has repeatedly and publicly denied that gold is an investment, and called gold buyers "speculators" and people "who fear almost all other assets." In fact, Buffett claims that gold's rise has the same characteristics as the housing and dot-com bubbles, and it is only a matter of time before it reverses course. He doesn't mean that the price will decline because of austerity measures and a free-market interest rate, mind you. He just asserts that because he's deemed it a bubble, it will inevitably burst.

 

The financial world by-and-large views Buffett as an objective observer, a rare investor who still considers the best interests of common man when he speaks. Each year, there is much hullabaloo over the letter Buffett writes to the shareholders of Berkshire Hathaway. When Buffett makes a claim, the financial world coos and repeats it without question.

 

I concede that Buffett is a talented investor and a great communicator. He clearly has had great success and has much to offer. But that shouldn't blind anyone to the fact that Buffett is not a trusted observer. He's a crony capitalist who bends the truth to serve his long-held ideological commitment to big government.

 

In the early stages of the financial crisis, when I was writing and promoting my first book Crash Proof to warn private investors about trouble ahead, Buffett was accumulating shares in companies such as Goldman Sachs, Wells Fargo, Bank of America, and General Electric. I knew these companies were insolvent, so I wouldn't touch them with gardening gloves on. When the credit markets seized up, Buffett worked behind the scenes and in public to make sure each of his pet companies were bailed out. This was not by coincidence. Buffett actually stated in September 2008 that he would not have invested in Goldman Sachs if not for the implicit guarantee of federal assistance. As a result, he profited at the expense of taxpayers at the very time when they were losing their savings in the markets. Meanwhile, many "in the know" politicians bought  Berkshire stock during the height of the crisis, making a profit from their votes, and giving them incentive to revere Buffett all the more. Buffett once said if that if the government didn't bailout failed companies, he would be "having my Thanksgiving dinner at McDonald's instead of having a big dinner at my daughter's." Seems like there were two bloated turkeys at that meal.   

 

If Buffett were a true capitalist, he would be in favor of gold. He has noted that the value of the dollar has fallen 86% since he took over Berkshire Hathaway in 1965 and even said in his latest shareholder letter that investors are "right to be fearful of paper money." But he continues to harp on gold. It seems the only unit of account Mr. Buffett approves are shares of his own company!

 

The adoption of an independent measure of value like gold presents two problems to Buffett. First, it would reduce the nominal returns of his dollar-based investing strategy. Second, it would restrict Washington's ability to goose the financial system in his favor.

 

In the 19th century, when gold and silver were legal tender, the outsized returns to which Buffett has become accustomed were much harder to earn. Most people kept their money in physical bullion or bank deposits - and earned a real rate of return. Now, under the fiat system, working folks are forced into the more complicated world of equity investing. This, too, can generate real returns, but it's a tougher playing field for the inexperienced.

 

Also, the fiat system artificially balloons the financial services portion of the economy. In the 19th century, fortunes were made more often by business owners than simple equity investors. People were more likely to rewarded for providing a productive service than having direct access to the Fed's discount window.

 

A quick look at Berkshire's performance verses gold since the Credit Crunch goes a long way to explaining Buffett's antipathy toward the yellow metal:  

Gold vs Berkshire Hathaway
Source: Google Finance

But Mr. Buffett's lack of credibility goes deeper than a differing monetary philosophy. He has been in the press since last August claiming that he pays less taxes than his secretary - and urging Congress to pass a "Buffett Rule" mandating a 30% minimum tax on millionaires. The natural reaction is to say, "If you want to pay more, go ahead." But Buffett has gone on record saying that it's not enough for him to lead by example, and demanding that all of America's well-off bear the burden of Washington's reckless spending binge.

 

The problem is that Buffett's entire argument is constructed on deception. Buffett is rated as the third richest man in the world for managing the nearly $393 billion in assets, and he highlights that he pays only pays 17.4% of his income in taxes. But this is because he earns less than 1% of his annual wealth from his salary, while over 99% is earned as the largest shareholder of Berkshire Hathaway. Buffett claims that he discounts his Berkshire holdings because he plans to give it all to charity when he dies. So, it's not that the tax rates are so low, it's that Buffett plans to give away 99% of his wealth.

 

But even accounting for this clever accounting trick, Buffett is still grossly understating his personal tax burden. He owns roughly 1/3 of Berkshire's outstanding shares, the profits from which are subject to a 29% corporate tax rate. Last year, Berkshire paid $5.6 billion in taxes - and the IRS says they owe $1 billion more! In addition to corporate taxes, Buffett is also subject to an additional 15% capital gains tax on his stock when he cashes out, not to mention any future estate tax, leaving many to conclude that his share of taxes is certainly higher than his secretary's.

 

You might wonder what Buffett would hope to gain by understating his own tax rate. To answer that, you have to understand Buffett's ideological background. His father, Howard Buffett, was a US Congressman known for his staunch libertarianism. As has been recounted by biographers, Buffett resented being uprooted from his Omaha, NE home to move to Washington, DC and felt estranged from his stoic father. That is to say, Buffett's commitment to the nanny state runs very deep.

 

But also, as mentioned earlier, Buffett personally benefits from the current corrupt state of affairs. He gets prestige from nominal gains in his stock price. He gets bailout money to guarantee the insolvent companies in which he invests. Even that estate tax that will hit him when he passes currently allows him to buy out other businesses at a steep discount.

 

It also shouldn't be a surprise that humble Howard was a staunch advocate of gold and silver as money - nor that wealthy Warren rejects precious metals as having "no utility."

 

The media has built Warren up to be a demigod, a straight-talking Nebraska boy that can hold his own against the vipers of Wall Street. But he is just a man with a talent for making money, and his motives should not be beyond reproach. Is he advocating the use taxpayer money to bailout his business interests so he can profit? Is he being honest about what money is? Does he even understand the business cycle?

 

Gold prices will only go down when governments change course and make significant cuts. Until then, gold is not in a bubble. It's the only way to protect your wealth; and in the current economic condition, it's poised to go much higher. I think it's high time Buffett takes to heart his father's wise words: "For if human liberty is to survive in America, we must win the battle to restore honest money."

 

Peter Schiff is CEO and Chief Global Strategist of Euro Pacific Precious Metals, a gold and silver coin and bullion dealer offering honest products at competitive prices.        

If you would like more information about Euro Pacific Precious Metals, click here or go to our website, www.europacmetals.com. For the fastest service, call 1-888-GOLD-160  
HOW HIGH CAN THE GOLD BULL CLIMB?

by Mark Motive of Plan B Economics  

 

Gold is once again above $1,700 and eyeing its all-time high. Yet, the same two camps are saying the same things they have since the yellow metal was at $600: either this is a bubble, or it's headed much higher. While the gold bulls have clearly been right for over ten years, that doesn't mean they will always be right. There are many ways to determine whether gold will continue its historic climb. In the past, I have looked at gold fundamentals - such as monetary inflation, increasing government deficits, and an unsustainable debt - all which indicate a bullish future. Today, I am examining a technical bellwether which has been used for decades to analyze the relative performance of stocks vs. gold.

 

The S&P 500-to-gold ratio measures the value of the stock market relative to gold. When the ratio is high, stocks are considered expensive relative to gold, and vice versa. This is used as an "adjustment factor" that isolates stock market performance from the effects of monetary expansion. In other words, if the S&P 500 were rising in nominal terms but the ratio to gold were falling, investors holding the S&P 500 would be losing wealth in real terms.

 

As you can see in the chart below, between 1980 and 2000, the S&P 500-to-gold ratio rose from 0.17 (stocks cheap) to 5.46 (stocks expensive). This rise in stocks vs. gold was led by an American business renaissance and real wealth creation, fueled by deregulation, technological progress, and globalization. Unfortunately, the US government chose to squander this progress with massive printing, borrowing, and bailouts.

 

1970 to 2012
Data sources: Plan B Economics, Measuring Worth,
World
Gold Council, and Robert Shiller

By 2000, Washington's bad habits finally caught up to the private sector and the S&P 500 tipped into a colossal decline relative to the price of gold. This period, which is still unfolding, is marked by eroding real wealth, systemic financial stress, and inflationary pressures. Since 2000, stocks are more-or-less flat in nominal terms, but this falling ratio implies that the real value of the S&P 500 has plummeted. During this period, investors who owned gold saw their purchasing power rise relative to those who held stocks.

 

By looking at the historical range for the S&P 500-to-gold ratio, one can infer the extent to which a gold bull market can run. The question I often get is, "Gold has rallied for over a decade - how high can it go?" While there isn't a 'correct' S&P 500-to-gold ratio, historical bounds provide a useful guideline:

  •  The current S&P 500-to-gold ratio is about 0.778. To hit the ratio's post-war low of 0.17, witnessed in the summer of 1980, the S&P 500 would either have to fall by about 78% or gold would have to rise to approximately $7,850/oz (or some combination of the two). 
  • Looking back at the entire history of the S&P 500 and its predecessor indices (see chart below), the ratio was as low as 0.156 in 1878 and was consistently under 0.5 for half a century. To reach the 1878 low, the S&P 500 would either need to fall by over 80% or gold would need to rise to roughly $8,800/oz (or some combination of the two).

1800s to 2012
Date sources: Plan B Economics, Measuring Worth,
World Gold Council, and Robert Shiller
The S&P 500-to-gold ratio is just one of many ways to evaluate the gold bull market. While I can't predict the future prices of the S&P 500 or gold, this short historical analysis illustrates that today's ratio is not even close to treading on new territory. Until the gold fundamentals change, I believe that the yellow metal will continue to outperform stocks.

 

Mark Motive is the pen name of a respected business journalist. He is the publisher and chief author of Plan B Economics, a premier source for market insights overlooked by the mainstream media. Follow Mark on Twitter for free eBooks, research, documentaries and more: @planbeconomics.

IF GOLD COULD TALK
by Jeff Clark of Casey Research


Have you ever had any doubts about gold? Does it sometimes feel like it should be performing better? Are you concerned about its volatility? Do you worry about how it might perform in the future? Have you ever wondered about its true purchasing power? Maybe you're nervous about a big drop in price again? I decided to go directly to the source to address these concerns: Gold himself. He put his arm around me and asked me to tell you a few things...

 

I hear that you've had some worries about me. I understand. Your world is a very uncertain place right now. And when it comes to money, it looks as though your leaders don't understand some basic monetary principles, making things even more unsettling.

 

But I want you to know that the problems you're experiencing are actually nothing new. I've seen these monetary, fiscal, and economic difficulties many times before. And I can tell you this: you're safe with me. That's a bold proclamation, but I've provided monetary protection numerous times throughout history - too many to count, in fact. I've served all kinds of people over the centuries, from kings and counts to serfs and servants.

 

To put your mind at ease let's review my core characteristics, along with some history, to show how I can protect you against the monetary danger that's likely to worsen in your near future. We'll also take a look at your peculiar set of circumstances to see how I can be of service. By the time we're done, I think you'll feel much better about my ability to help your portfolio withstand whatever is thrown its way.

 

ENDURING CHARACTERISTICS

 

Let's start with the basics. I have some characteristics that no other matter on Earth has...

I cannot be:

  • Printed (ask a miner how long it takes to find me and dig me up)

  • Counterfeited (you can try, but a scale will catch it every time)

  • Mistaken (how many metals are bright yellow?) 

I cannot be destroyed by:

  • Fire (it takes heat at least 1945.4 F to melt me)

  • Water (I don't rust or tarnish)

  • Time (my coins remain recognizable after a thousand years)

I don't need:

  • Feeding (like cattle)

  • Fertilizer (like corn)

  • Maintenance (like printing presses)

I don't have:

  • Industrial Dependence (keeps my volatility lower) 

  • Counterparty Risk (remember MF Global?)

  • Shelf life (I never expire)

As a metal, I am uniquely:

  • Malleable (I spread without cracking)

  • Ductile (I stretch without breaking)

  • Beautiful (just ask a bride)

As money, I am:

  • Liquid (easily convertible to cash worldwide)

  • Portable (you can conveniently hold $50,000 in one hand)

  • Divisible (you can use me in tiny fractions)

  • Consistent (I am the same in any quantity, at any place)

  • Private (no one has to know you own me)

"GOLD IS MONEY"

 

You've heard that statement before - but do you know what it really means? Money is a medium of exchange and a store of value. Almost anything can be used as money, but obviously some things work better than others. It's hard to exchange things people don't want or don't store well. Over thousands of years, I have emerged as the best form of money (along with silver).

 

The paper dollars in your wallet are technically just a currency, not real money. In other words, they are a government substitute for money. Money must be durable, divisible, consistent, convenient, and have value in and of itself.

  • It must be durable because you can't have it disintegrating in your pocket or bank. That's why you don't use wheat; it can rot or be eaten by insects.

  • It must be divisible, which is why you don't use diamonds or artwork; they can't be split into pieces without destroying the value of the whole.

  • The lack of consistency is why you can't use real estate. One property is always different from another.

  • It must be convenient, which is why you don't use other metals like iron. The coins would be too big to handle easily.

  • It must have value in and of itself. This is why you shouldn't use paper as money.

  • And one more thing: it must not be easily duplicated. Not even the kings and emperors who clipped and diluted gold coins dared to use paper as money.

My function is as money and a store of value, so the proper comparison is to your dollars or Treasury Bills (of similar nominal value). And here is where I excel and serve my purpose: since 1913, the US dollar has lost 96% of its purchasing power. I have lost none.

 

Remember, I am the only financial asset that is not simultaneously someone else's liability. I don't require the backing of any bank or government.

 

THE HISTORY LESSON

 

Because I am eons old, I've observed something throughout history that you may not be aware of: government fiat currencies are a relatively new invention, and none have held up. Eventually, they have all failed. Me? I've never defaulted. Remember this the next time you have any doubts about my long-term worth.

 

Another of my roles is to protect your purchasing power. Here are a few examples of how I've kept my word:

  • During the time of Christ, an ounce of me purchased a Roman citizen his toga (suit), a leather belt, and a pair of sandals. Today, one ounce will still buy a good suit, a leather belt, and a pair of shoes.

  • In 400 BC, during the reign of King Nebuchadnezzar, an ounce of me bought 350 loaves of bread. Today, an ounce still buys about 350 loaves ($1,700 divided by 350 = $4.85/loaf).

  • In 1979, my average price was $306.68. This bought an average-priced full-size bed. Thirty-three years later, $1,700 would still buy you a nice full-size bed (and then some).

You can rest assured that over time, I will hold my value. And when you near the end of your life, you can pass me on to your loved ones, knowing full well they will have something that cannot be devalued, debased, or destroyed.

 

WHAT COLOR IS YOUR MONEY?

 

Like you, I'm concerned about the current state of fiscal and monetary affairs. It seems your government leaders have boxed themselves into a corner. They've incurred too much debt and are spending too much  money . It's important that you understand some lessons from history about this kind of behavior so that you're certain of what I can do for you.

 

The common denominators that lead to the downfall of every fiat currency are the two big Ds: debts and deficits. With that in mind, consider the following:

  • Morgan Stanley reported that there is "no historical precedent" for an economy that exceeds a 250% debt-to-GDP ratio without experiencing some sort of financial crisis or high inflation. US total debt currently exceeds GDP by roughly 400%.

  • Detailed studies of government debt levels over the past 100 years show that debts have never been repaid (in original currency units) when they exceed 80% of GDP. US government debt will exceed 100% of GDP this year.

  • Investment legend Marc Faber reports that once a country's payments on debt exceed 30% of tax revenue, the currency is "done for." By some estimates, the US will hit that ratio this year.

  • Peter Bernholz, a leading expert on hyperinflation, states unequivocally that "hyperinflation is caused by government budget deficits." Next year's US budget deficit is projected to be $1.3 trillion.

The solution many of your leaders pursue is to print more paper money . Here's an updated picture of the increase in the US monetary base vs. my rise in price since 2008, when your problems starting surfacing.

 

 

The monetary base has grown 205.8%, while my price is up 65.8%. This alone implies that my price in dollars is likely to climb much higher.

 

This is also the reason why I'm not in a bubble, as some have tried to claim. It is your central banks and bond markets that are in a bubble. The fact that my price is rising is a warning that what your leaders are doing is unsustainable and potentially dangerous to your currency.

 

Think about this: the US has debt backed by debt, based on debt, dependent on debt, and leveraged with debt. You can, for example, buy a bond (i.e., lend money) on margin (i.e., with borrowed money). This is not a sound way to run financial markets.

 

Meanwhile, the warning bells continue to sound regarding Europe's debt crisis. In just the past month:

  • Moody's cautioned that it may cut the AAA status of France, Austria, and the UK; and it downgraded six other European nations including Italy, Spain, and Portugal.

  • Standard & Poor's cut the AAA status of France and Austria, while Italy, Spain, Portugal, Cyprus, Malta, Slovakia, and Slovenia were downgraded.

  • Fitch downgraded Belgium, Cyprus, Italy, Slovenia, and Spain, and stated there was a 50% chance of further cuts in the next two years.

  • Standard & Poor's downgraded 34 of Italy's 37 banks.

  • Moody's warned recently that it may cut the credit ratings of 17 global financial institutions and 114 European ones.

The European crisis is far from over; and the path of least resistance for politicians is to create more paper money. This action can and will have clear and direct consequences: currencies will devalue, and inflation - perhaps hyperinflation - will result.

 

Once again, I encourage you to use me to protect some of your wealth.

 

HOW MUCH IS ENOUGH?

 

Given the state of your monetary system, you should accumulate me (and my cousin silver) on a regular basis. Just buy some every month and put us in a safe place. After what I've witnessed throughout history, and based on the current path your government leaders insist on pursuing, I suggest using me as your savings vehicle instead of putting dollars in a bank.

 

If you don't own enough of me when these fiscal troubles really accelerate, I fear you will regret it. I've warned many in the past about the dilution of nations' currencies, and those who didn't heed my warnings experienced severe financial pain. Excuses won't pay the mortgage nor feed the family when the effects of currency debasement hit your home and pocketbook.

 

Make sure you own enough of me to make a difference to your portfolio. This means having more than a couple coins or a few shares of GLD, the latter of which is only a proxy for my price.

 

How do you know if you own enough? Ask yourself:  

  • If inflation returns, or even hyperinflation hits...
  • If the economy is flat...
  • If uncertainty and fear continue around the globe...
  • If stock markets languish...
  • If stimulus from the world's governments proves futile...
  • If government interference in the economy continues to increase...
  • If the value of the US dollar takes a major fall...
  • If the world enters a recession or depression...
  • If the world enters a recession or depression...  

... would you feel that you own enough of me?

 

Buy a sufficient amount so that as your currency continues to lose value, your portfolio won't. If you do your part, I promise I'll do mine.

 

Yours Truly,  

Gold

 

Jeff Clark is the editor of BIG GOLD, Casey Research's monthly advisory on gold, silver, and large-cap precious metals stocks.  

 

For ongoing guidance about physical gold and silver, as well as the large-cap precious metals stocks, try BIG GOLD today for just $79 per year, with 3-month money-back guarantee.   

QUESTIONS FROM OUR CUSTOMERS

WHAT KINDS OF PRODUCTS DOES EURO PACIFIC PRECIOUS METALS SELL?

Euro Pac Metals offers various sizes of gold, silver, platinum, and palladium in bullion coins and bars from both government and private mints.  

 
Government-minted coins tend to be the first choice of gold buyers as they are recognizable worldwide. Euro Pacific Precious Metals sells industry-standard American Eagles, Canadian Maple Leafs, Australian Kangaroos, Austrian Philharmonics, and the South African Krugerrands. Although coins are typically more liquid, there is normally a higher premium because they are being produced by a government instead of a private mint. Bars, by contrast, offer lower premiums and come in higher denominations, including 10 ounces, 1 kilo (32.15 ounces), and up. Our bars are minted by the world-renowned Perth Mint in Western Australia.  
 
As gold continues to increase in price, some buyers are also seeking smaller denominations than the 1 ounce bullion coin. These products are known as fractional gold coins. We carry Gold American Eagle and Canadian Maple Leaf coins in 1/2, 1/4, and 1/10 ounce weights. Their appearances are identical to their larger coin siblings, except for the relatively smaller size.  
 
There is a more variety in the silver market. We sell government-minted American Eagles, Canadian Maple Leafs, and Austrian Philharmonics, but also carry privately minted rounds (the government reserves the word "coins" for its own products), as well as 10 ounce, 100 ounce, and 1000 ounce bars. In silver, there is less of a price difference between government and privately minted products. Private rounds and bars carry a lower premium and are popular for bartering.

For the truly cost-conscious, we also offer bags of junk silver. These are previously circulated US dimes, quarters, and half-dollars minted before 1964 - back when each of these US coins contained 90% real silver. The real junk is what's in your change purse now, but "junk silver" got its name because it's less-fine alloy of silver than coins minted for storage. You actually get more silver overall for your dollar, but there is less in each particular coin. 

 

Lastly, we sell platinum and palladium 1 ounce American Eagle and Canadian Maple Leaf coins, as well as 1 ounce and 10 ounce bars. These are less common precious metals, but have their own attractive attributes. 

 

The most important decision is not which product you choose but whether you want to preserve your capital from a collapsing US dollar. Any of these metals will help you do so. To find out which is the best choice for you, call one of our Precious Metals Specialists at 1-888-GOLD-160 to start the conversation.

THIS MONTH IN GOLD 

 

South Africa's Largest Bank Eyes $2,500 Gold

Bloomberg - Walter de Wet, Head of Commodities Research at South African giant Standard Bank, says gold at $2,500 an ounce is possible in the near term due to forecasted low interest rates over the next 12 to 24 months. "Gold these days is trading as a quasi-currency," de Wet said, and the current spot already prices in some expectation of additional quantitative easing (QE) in the US. Even without more QE in the US, de Wet says gold would still find major support at around the $1,600-$1,650 an ounce level. See video >>


China Set to Become Biggest Gold Market

Financial Times - The World Gold Council forecasts that China will overtake India to become the biggest gold market in the world in 2012. Marcus Grubb, Managing Director of Investment at the Council, says that as growth and inflation remain relatively high in China over the coming year, Chinese consumers will increasingly move their savings into gold to safeguard their wealth in an economic environment offering few alternatives. Grubb expects Chinese gold consumption in 2012 to increase at approximately the same rate it did in 2011, an encouraging 20 percent. Read full article >>

 

Emerging Market Central Banks Driving Gold Higher

CNBC - Mark Bristow, CEO of Randgold Resources, a miner with operations in western Africa, says that emerging market central banks are underpinning today's elevated and rising gold price. In a financially volatile world, Bristow maintains, emerging market central banks are using gold to mitigate their foreign exchange risks and as a general hedge. Bristow also thinks this will drive the yellow metal for years to come.  

Read full article >>

 

CitiBank: More Printing to Boost Gold in 2012
Bloomberg - David Wilson, Director of Metals Research and strategy at Citigroup, says more central bank quantitative easing (QE) in 2012 will boost the price of gold. Wilson sees bullion climbing to $1,800 an ounce or more by the end of the year. "The key driver behind gold is risk. And there's a lot of risk out there... Everywhere you look there is potential support for gold," Wilson remarks. Wilson goes on to stress that the risk of inflation only grows with QE - making this a good time then to invest in the ultimate hedge with upside potential aplenty and zero counterparty risk. See video >>

 

More States Mull Gold and Silver as Alternative Currencies

CNN Money - Utah got the bullion rolling last March. Since then, 13 other states are legislating gold and silver as legal tender for good and services. South Carolina, Washington, Minnesota, Iowa, Georgia, Idaho, and Indiana are among the states considering proposals to make specie legal tender. For lawmakers backing the proposals, Article I, Section 10 of the US Constitution provides the legal authority: "No State shall...make any Thing but gold and silver Coin a Tender in Payment of Debts."  

Read full article >> 

  

Miner: Fantastic Opportunity in Silver

CNBC - High-beta silver is the place to be to outshine the competition, Gavin Thomas insists, CEO of Australian gold miner Kingsgate Consolidated. Thomas sees silver climbing to $50/oz over the next 24 months, calling it a "fantastic opportunity" due to the failure of supply to keep up with surging demand. Thomas points out that diminishing stocks of lead and zinc, the raw materials that yield most of the world's silver as a byproduct during processing, are squeezing supply. Moreover, Thomas notes, Chinese and Indian consumers are increasingly turning to silver as gold becomes more difficult to obtain due to scarcity and price.  

Read full article >> 

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In This Issue
Buffett's Bursting Bubble - Peter Schiff
How High Can the Gold Bull Climb - Mark Motive
If Gold Could Talk - Jeff Clark
Questions From Our Customers
This Month in Gold
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