Oz Gold Coins

I’ll let him explain it in his own words here in a moment. I reviewed stock and options analyst Rick Ackerman’s site and found that he is a free thinker. He has been in the investment industry for a long time and admits that he has always seen deflation in our front windshield. No longer. Here is what he said on his website last week:

“I will need to find a way to break this gently to my readers, perhaps starting with the old joke you’ve mentioned about not having to outrun the bear. It goes a long way toward explaining how the Masters of the Universe will actually benefit from hyperinflation. You’ve also helped me understand how I could have been so bullish on gold (Eric’s addition here - that is physical gold, folks) over the years even though I considered myself a hard-core deflationist. It was a conflict between head and heart, really, but you’ve resolved it with the most persuasive argument I’ve seen in favor of gold. Even better, you’ve provided a sound basis for arguing that at $1500 per oz., gold has barely begun to discount the dollar’s final fall.”

Most interesting. Welcome to the truth Rick! Read his post here: Hyperinflation vs. Deflation: I Concede Catch that folks? (physical)…. “gold has barely begun to discount the dollar’s final fall”. Start your gold coin or numismatic silver coin collection yet? Now would be an appropriate time! Call us at Lear Capital today!

From the article: “Chips are disappearing from bags, candy from boxes and vegetables from cans.

As an expected increase in the cost of raw materials looms for late summer, consumers are beginning to encounter shrinking food packages.

With unemployment still high, companies in recent months have tried to camouflage price increases by selling their products in tiny and tinier packages. So far, the changes are most visible at the grocery store, where shoppers are paying the same amount, but getting less.”

Man-o-man. Con artists is what the author of this article John Rubino calls the perpetrators. However, as easy as it is to change packaging sizes, you could see this coming! Want some good news? Physical gold and silver coins have held value for a very long time, as in 6,000 years. A 1.0 oz. gold coin is the same size and weight today as it was when gold coins were our currency.

If you are interested in something that doesn’t shrivel up or dwindle like the above size bags, boxes or cans, give us a call at Lear Capital !

Back on January 5^th, Rob put forth an excellent article. Now that I have thought about  it for a while, I concur with the entire article and am therefore posting it here:  

“The supply of paper currencies is infinite; the supply of gold (Eric's add here - that is physical gold folks!) is finite. This striking contrast provides an excellent reason to exchange the former for the latter.

The gold supply is limited…very limited. According to one estimate, all the above-ground gold in the world totals between 120,000 and 140,000 metric tons. Let’s split the difference and call it 130,000 metric tons (about 4.2 billion troy ounces). If you brought it all together and made it into a gigantic cube, it would measure about 19 meters along each side – about three meters short of the length of a tennis court.

Furthermore, about 20% to 25% of all the gold is stored in the world’s central banks as country reserves. So the total amount of gold in private hands is enough for just 14 grams for each living person – that’s less than half the quantity of a standard one-ounce coin like a US Gold Eagle or a South African Krugerrand.

At present, only about 2.25% of the world’s total wealth – or 4.5% of world’s financial wealth – is allocated to gold, including jewelry. But resurgent inflation could raise that percentage dramatically, while raising the gold price dramatically in the process.

To gain perspective, let’s examine a brief history of the gold price relative to US inflation. The gold price peaked in January 1980 at $850/oz. But this peak was very brief. Gold jumped 29% alone in the run towards $660. Probably a better reference point for the market top is the average price during 1980 as a whole. This was $615/oz. Since then, the gold price has increased only 125%.

Over the same timespan, however, the government’s most widely quoted inflation gauge, the Consumer Price Index (CPI), has increased 185%. Therefore, if the gold price had increased as much as the CPI, it would be selling for $1,753/oz today, not $1,390/oz. But the official inflation figures might not be the real story. Using alternative inflation figures calculated by ShadowStats.com, consumer prices have soared an astounding 789% since 1980, which means that the inflation-adjusted gold price would be $5,467/oz.

I’m staying conservative, and there’s nothing to suggest that just because using the ShadowStats inflation worked for the bear market lows it will work for the bull market highs. But if the ShadowStats figures above are a guide, then maybe they point to a price north of $5,000/oz for gold – or even $7,000 for a short time.

I’ve just thrown a lot of numbers at you. But the point is this: gold (again, not paper gold, but physical gold!) looks like it has plenty of upside. But let’s be really clear about one thing. I’m not making a hard prediction or setting a price target here. These figures just provide reference points. We also need to watch out for gold “going mainstream” – when references make their way into TV programs, when taxi drivers start talking to you about gold and when your mother calls to ask how to buy an ounce of the stuff.

I can easily see gold getting into the $2,000/oz to $3,000/oz range in the next few years – maybe higher. And there’s a very real possibility that we’ll have a short-term spike – a genuine investment bubble – that takes us into the $5,000/oz to $8,000/oz.

None of this is certain. And it most likely won’t happen smoothly. There could even be big corrections along the way – like between December 1974 and August 1976 when gold fell 47% before powering ahead again. But I hope I’ve shown you that there are good reasons to think that gold still has plenty of room on the upside.

Conclusion: If you own plenty of gold already, then hang on for the ride. If not, buy more on the dips.

Regards,

Rob Marstrand
for The Daily Reckoning”

Eric again. Got that folks? Buy gold! Gold coins as investment - buy more on the dips! Call us here at Lear Capital today!

Curing the Debt Crisis With More Debt

They always say, be careful what you wish for.  For months, inflation fears heightened as bailouts and stimulus became the order of the day.  Borrow and spend,  print to pay, that was the plan.  A plan that was to . . .

·         rescue a failing housing industry;

·         bring unemployment down to 8%; and

·         save a stock market whose bubble burst for the second time in less than a decade. 

It worked for awhile, as free money was injected into nearly every arm of the economy. 

Car sales peaked . . . Home sales spiked . . . Appliance sales got a boost . . . Even Window sales opened wider as cash flowed freely from government printing presses.

With the belief that more debt could cure the debt crisis, government asked for inflation and got it.  Demand for gold grew so fast,  reports of shortages began to surface as the gold price continued its sturdy rise to new highs.

BIG REASON #1 - Inflation Steals From Your Savings and Retirement Accounts     

If anything is inflationary it is the printing of FREE Money.  Like a thief in the night, inflation robs your savings and retirement accounts.  Learn how gold may provide you the best strategy to protect purchasing power, provide profit and become a powerful retirement building tool! 

Click here for your FREE Gold Guide and special reports  

At The Crossroads of Inflation and Deflation

Just as an addict endures withdrawal so is our economy withdrawing from the high of free money.  Personal bankruptcies are on the rise, housing starts on the decline and unemployment hovers near the 10% level -- maybe higher as the "still jobless" fall from unemployment rolls.

Oh yeah!  Then there's the stock markets.  They run up . . . they fall down . . . volatility may never have been higher than it is today. Uncertainty is winning the emotional battle.

Where once we feared inflation we now face the threat of deflation.

In a recent Wall Street Journal Report, Fed Minutes from the June FOMC meeting make known these early warning signs of deflation and cite the fading effects of stimulus.  A mid-year check on the performance of gold vs. the markets shows gold up a strong 9% unfazed at the prospect of either inflation or deflation.  The markets?  Dow - down!   NASDAQ - down!   S&P 500 - down!    

A choice must soon be made.  Choose your poison.  Inflation or deflation?   
 

BIG REASON #2 - Fed Fear of Deflation Could Trigger Pro-Gold Strategy     

The WSJ article says, "Fed May Consider Further Stimulus if outlook Worsens." We always say, inflation slowly steals your savings and retirement but deflation can steal it overnight.  Evidence shows  Fed is standing ready to fight deflation with more printed money.  Learn why gold may be best defense against both inflation and deflation.      

Click here for your FREE Gold Guide and special reports

The Debt Threat

Now, this administration is at a crossroads.  To continue down the free money path, in attempt to re-inflate the markets and our economy, could send America to its debt bed.  We fast approach a time when all the taxes collected still won't be enough to pay even the interest on our debt.

And the other path?  Deflation!  Spending cuts, higher taxes, and a stimulus-free economy are the bullets this administration is ready to fire in the fight against inflation and exploding debt.

First signs of this effort appeared when Congress denied the extension of unemployment benefits to millions of unemployed.  That policy may shift but the consensus is in - deflation is today's dominant trend.

In response, market volatility heightened and gold prices firmed as worldwide gold demand continued to rise.  The world awaits direction.  Will we deflate or will Fed fears override these efforts and return us to a print to pay policy of re-inflating our economy? 
 

BIG REASON #3 - Deflation Could Trigger Debt Bomb Explosion and Higher Gold  

Debt combined with deflation are more volatile than nitro-glycerin.  Why?  Because things you buy with borrowed money today will be worth less tomorrow.  With debt projected at $16.3 trillion by 2012,  is it any wonder the Fed is prepared to fight deflation with more stimulus?  Learn why cash is king during deflation and gold is cash.        

Click here for your FREE Gold Guide and special reports

Inflation and a Weak Dollar - Greatest Hope for Recovery

As ironic as it may seem, our once greatest fear of inflation may ultimately prove to be our only means to economic recovery. 

If it is believed deflation can trigger a debt bomb and bring a quick end to any hopes of preserving our savings and retirement accounts, we, indeed the world, may have no choice but to try to inflate our way out of this mess. 

You see, during inflationary periods, the dollar weakens.  A condition the markets love as both foreign and domestic profits begin to rise.  And because inflation leads to a weaker dollar, debts actually shrink as money you borrow today gets paid back with cheaper dollars tomorrow.     

Here's the secret:  Don't borrow to own or buy anything but tangible assets.  Real estate, precious metals and a host of other commodities, are appreciating assets, the debt for which can be repaid with a dollar worth less than when it was borrowed.

BIG REASON #4 - A Weaker Dollar Could See Gold Double or Triple Again  

Over the last decade, we've seen housing inflation rise to bubble proportions . . . stocks too.  Then crisis, as both bubbles burst.  And gold?  In less than a decade gold rose 400%.  Learn why experts say the real gold bull market is yet to begin and gold could double even triple from today's levels.         

Click here for your FREE Gold Guide and special reports

 

More Stimulus Sets Stage for Higher Interest Rates

If a Fed policy to inflate wins out over this administration's apparent efforts to deflate, this policy is not a risk free solution to our economic woes.  As more stimulus gets pumped into the economy,  inflation will surely rise.

With interest rates currently near zero, there is ultimately only direction rates can move . . . higher!  Especially, when stimulus dollars, once again begin to flow into a slowing economy.

Hyperinflation will become a threat and efforts to control the rate at which inflation rises will come in the form of rising interest rates.  Some say this will be a sign the real gold bull market has begun.

BIG REASON #5 - Rising Rates Signal $2400/oz. Gold  

To match its 1980 inflation adjusted high,  gold prices would have to double.  It was then that interest rates peaked after rising from inflation-inducing lows.  Will a stimulus-laden recovery drive inflation, weaken our dollar and cause history to repeat?  Learn why experts say Gold diversification may be your best strategy to protect and grow your wealth.           

Click here for your FREE Gold Guide and special reports

This could be your very best opportunity to take advantage of a gold bull market that may only be in its infant stages!!

According to a recent report from the Cheshire Republican Women,  outgoing Republican Senator Judd Gregg believes, within five to seven years, the US is heading for a debt-driven “financial meltdown!"

Lear Capital has been sounding this same warning for some time . . .

Globally, more and more people are turning to gold to protect and grow their savings and retirement accounts.  Central banks like China, Russia, Brazil and India are all buying gold.  And, as evidenced by reports over the last two years from the U.S. Mint, gold supplies are limited.

Even today, we find from the www.usmint.gov web site . . .  

"Due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2009-dated American Eagle Gold Uncirculated Coins were not produced.

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products."

Don't be caught short . . . timing is critical.

The U.S. is heading for a debt explosion and nothing seems able to stop it.  Over the last ten years, gold has been the beneficiary of volatile markets, bursting bubbles and a weakened dollar brought on by massive stimulus. 

Learn why more of the same is expected in the months and years ahead.

Click here to receive your FREE Survive-the-Meltdown Edition of Lear's Gold Advantage Investor Guide.  Do it now and while supplies are available to receive our latest special reports on Inflation, Deflation and How to Own Gold In Your IRA Accounts.


 

Chuck Butler of Everbank writes The Daily Pfennig. He has been accurately calling for sanity in regards to the addition of debt in our country. This is what he had to say yesterday.  

“So... Here I am on a Wonderful Wednesday, and I just finished my "day job" which means it's now time for me to begin reading, researching, and thinking about what to write about in Thursday's Pfennig!

On this day, we had some monstrous black clouds move in from the west... And I couldn't help thinking that one day, those same monstrous black clouds are going to move in and take over the U.S. economy. There's nothing new here folks... It's just another rant on deficit spending... If you don't care to participate, skip ahead to the Big Finish...

This time I'm going to quote some facts from the IMF... Not that I've made stuff up before, it's just that my economics professor for continuing education, is in love with the IMF, so, this is really to appease her!

You know, that the U.S. deficit spending has been going on for about a decade now, and that it has taken huge strides to increase the total deficit in the past two years. I've gone through all that with you before, right? OK... Here's the first blurb from the IMF...

"IMF's analysis of the U.S. economy, that "under the Obama administration's current fiscal plans, the national debt in the U.S. (on a gross basis) will climb to above 100% of GDP by 2015 -- a far steeper increase than almost any other country."

"But level of debt isn't the only problem. Then there's the fact that the US has a far shorter maturity of government debt than most other countries, meaning that even if it weren't borrowing any extra cash it would have to issue a large chunk of new stuff each year as things are."

You know... The U.K. Telegraph does a much better job of reporting on the U.S. deficit than do U.S. news organization (except the Pfennig!) Most of this stuff was from an article they printed. In addition though... Here's the killer... "a country's gross financing needs" represents how much debt it has to issue in the coming years to keep itself functioning"... And here's where the cheese begins to bind folks...

The U.S.'s gross financing needs today is 32.2% of GDP, which is far greater than most countries, including Greece! The only major country to "beat" the U.S. on the road to ruins is Japan!

And to end this little discussion on the U.S. deficit and forecast, the yield in a 2-year U.S. Treasury is .80%... That's not even 1% folks... By the time the broker takes his pound of flesh from the yield as his commission, the holder of this magnificent piece of junk gets about .25%, or 1/4% WOW! Where do I sign up for that? NOT! Think about this for a minute... Most of the U.S. debt is financed through these shorter maturities, and they are paying less than 1%... How long will foreign investors continue to line up at the door for 1% yields?”

I’m with Chuck! I’m also with Chuck on his advocacy of owning physical gold in a portfolio. He and his boss at Everbank (Frank Trotter) advocate adding a gold coin per person per year (those are one oz gold coins). Buy them today at Lear Capital!

Last Friday the 28^th (remember back through all of that BBQ grill smoke?) Rob Parenteau who writes The Richebacher Letter for Agora Financial was agreed with by some of his fellow compatriates at the Agora Financial 5 Minute Forecast. Here’s what they said (with which I heartily agree):

“Despite the stock market’s ups and downs this week, the fundamental weakness remains unchanged, both in the U.S. and in Europe. “The notion that the Greek financial crisis is contained and soon to be forgotten,” asserts The Richebacher Letter’s Rob Parenteau, “is dead wrong.

“Our experience in recent years,” Rob continues, “is that when professional investors play the denial game, they play it to the hilt. Their walls of denial are made of brick and remarkably thick, and they do not come down easily.

“But when current events blatantly reveal the incompleteness, if not the insanity, of consensus views, the walls of denial maintained by professional investors are undermined swiftly, and nothing more is left on the ground than a pile of red bricks with dust rising from them.

“When the thundering herd, in its infinite stampeding wisdom, turns tail, best to go find a ditch to jump into so you do not get trampled to death.”

What is an appropriate ditch at a time like this? A gold coins lined one, of course! That way, as we pull ourselves out of the ditch as this currency crisis/sovereign debt crisis passes over, we still have financial bedrock to our portfolios!  

I am talking about one oz gold coins, rare gold coins and while we are at it, some numismatic silver to line that ditch!

• RFID tags for stock control and ID cards are "taking over from bar codes";
• Solar panels - forecast to grow by 20-40 times in 10 years;
• Wood preservatives to replace arsenic;
• Wound care & other medical use, food hygiene, and anti-odor textiles - because silver, a biocide, inhibits bacteria.