Friday, September 28, 2012

Is Gold Going Higher?

3 Kinds of Telltale Signs

When gold is getting ready to shoot higher, there are 3 telltale signs to look out for: increased demand, money-printing, and a global loss of faith in the US dollar.

And browsing the news this summer, these 3 signs seem to show up everywhere you look.

Here are just 11 spotted in the last 35 days.

Former US Treasury Secretary Buying Billions Worth - John Paulson left the US Treasury to manage the world’s biggest bond-fund manager: Pacific Investment Management. And he just increased the companies gold holdings to $2.4 BILLION. (Reported Aug. 22)

Central Banks on a Gold Buying Spree - In 2011, central banks around the world bought more gold than in any year since Richard Nixon was President.  And this year, they’ll beat last year’s gold-buying record by nearly 10%. (Reported Aug. 17)

US Dollar Running on Fumes - The dollar is falling in value fast. It’s at a 4-month low vs. the EURO - despite Europe’s current financial crisis.  If it keeps up we’ll see $2,000+ gold in no time. (Reported Sept. 12)

Hong Kong’s Shipments of Gold to China have DOUBLED! China hasn’t told the world how much gold it has since 2009, but sometimes Hong Kong can give you a clue.  Their July reports showed gold exports to China DOUBLED from July of last year. (Reported Sept. 9)

China’s Sneaky Gold Moves - Rather than buying existing gold off the market, China’s making bids for gold mining companies around the globe: in Brazil, Africa, Australia and more. So instead of buying gold, they can just mine and keep it. (Reported Aug. 17)

European demand rising! The German Constitutional Court just ruled that the European Central Bank can keep printing money, pushing Europeans to buy more gold to protect against inflation. (Reported Sept. 12)

India Begging Citizens to Stop Buying Gold -  Gold is a big part of the Indian culture, and their demand for the metal keeps prices high.  So now their central bank is practically begging citizens to stop buying gold. They warn it’s an awful investment because it’ll likely just be given away at a wedding anyway! (Reported Sept. 7)

George Soros Doubling His Stake in Gold - He’s the infamous investor who first saw the English pound was weak... and then almost single-handedly brought the currency  to its knees with a $10 billion short, making himself a cool billion in profit. Now he sees the future of gold, and he just doubled his fund’s stake in SPDR Gold Shares. (Reported Aug. 22)

US Republicans Want to Return to a Gold Standard - The US Republican party platform was updated in August - and a commission to study a return to the gold standard was added.  If enacted, a gold standard will make the price of gold SOAR. (Reported Aug. 24)

World’s Largest Mutual Fund Agrees. The Total Return Fund, managed by Bill Gross, is buying gold now, and has been all of 2012. It’s the world’s largest mutual fund, and they expect gold to rise quickly. (Reported Sept. 4)

World Gold Council Predicts A Move to Gold... and away from the US Dollar.  Since the 2008 crisis, the US dollar has been the safe harbor to store wealth. But the World Gold Council now predicts the game is over - and gold will be the world’s currency hedge. (Reported Aug. 16)

And the NUMBER ONE Reason Is...

The Fed just announced a new round of “money-printing,” known as “QE3.”

It is, of course, the third time the Fed has tried “quantitative easing” - or money-printing - to fix the economy. And each time gold has jumped significantly higher.

But this time it’s even MORE BULLISH for gold.

When QE1 and QE2 were announced, the Fed let it be known upfront how much money they were willing to “print” beforehand.

This time, QE3 has no such limit.  The Fed announced it’ll continue to add $85 billion per month - or $1 TRILLION per year - to the economy.

That’s when the M2 Money Supply shows there’s currently only $10 trillion in the economy.  So the fed just promised us a 10% increase in the M2 Money Supply per year...

...otherwise read, a PROMISED 10% INFLATION per year.

That means if you keep your money in a bank account, you’re essentially LOSING 10% per year.

The best alternative is to buy gold & silver - two historical investments people flock to in times of a currency crisis.

In fact, in the hour following Ben Bernanke’s announcement of QE3, gold jumped by over $30!  Overall, gold is up 10% since rumors of the Fed’s actions started swirling.

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