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.

What If Everything We've Learned About Saving Money is Completely Wrong? is completely wrong?

Most households work on accumulating assets by focusing on how much of their annual budget they can save.  Although the goal may be 10% of income, the average savings rate for an American family is probably closer to 5%.

Now consider that the average American family is paying 34.5 cents of every take home dollar on lifestyle expenses.  Examples of such monthly expenditures include mortgage/rent, car payments, food, utilities, entertainment, etc.

Which of the two categories is bigger on an annual basis:  accumulating savings or lifestyle expenses?

It's an obvious answer.  Well, how come we focus on the smaller number then?  Perhaps because we've been conditioned by banks and Wall Street financial advisors to do so.  I know we are not taught anything in school about how money and finance works.

If we can accept that everything we buy is financed (we either pay interest to a 3rd party like a bank or finance company, or we give up the ability to earn interest by paying cash for things), doesn't it then make sense to realize that our need for financing our lifestyle is far greater than our need for saving?

From this new perspective we should then consider how to save enough money in order to solve our need for financing in our lifetime.  The perfect place to store your wealth in order to solve all your financing needs happens to be a dividend paying Whole Life insurance contract because when it is structured correctly, you reap the following benefits:

• Will provide you with a guaranteed return, without risk of principle, which means the amount will never drop.
• Will grow your savings by a competitive annual rate of return.
• Will enable you to take out your money whenever you want, without penalty.
• Provides complete protection against creditors, so you’ll never have to worry about losing your money due to a lawsuit or bankruptcy (in most states).
• Unlike 401K’s or IRA’s, there’s no limit to how much you can invest.
• The money can be used as collateral for the purchase of a home, etc.
• This strategy offers extreme liquidity so you can have your money in your hands within a few days.
• Provides you access to your money in the event of a disability.
• Allows you to “be your own bank”, so you’ll be able to buy your home, cars, and other large purchases from yourself, so you earn the interest instead of a bank.
• Allows you to pull out 100% of your money TAX FREE when you decide to retire.

To learn more, visit www.CashValueBanking.com or contact me at (925) 386-6639.

Why should you learn about Becoming Your Own Banker?

Why should you learn about Becoming Your Own Banker?

You’re Going To
Learn About A Financial Strategy That…

• Will provide you with a guaranteed return, without risk of principle, which means the amount will never drop.
• Will grow your savings by a competitive annual rate of return.
• Will enable you to take out your money whenever you want, without penalty.
• Provides complete protection against creditors, so you’ll never have to worry about losing your money due to a lawsuit or bankruptcy (in most states).
• Unlike 401K’s or IRA’s, there’s no limit to how much you can contribute.
• The money can be used as collateral for the purchase of a home, etc.
• This strategy offers extreme liquidity so you can have your money in your hands within a few days.
• Provides you access to your money in the event of a disability.
• Allows you to “be your own bank”, so you’ll be able to buy your home, cars, and other large purchases from yourself, so you earn the interest instead of a bank.
• Allows you to pull out 100% of your money TAX FREE when you decide to retire.

To learn more, visit www.CashValueBanking.com or contact me at (925) 386-6639.

Latest G. Edward Griffen Interview on the Success of the Fed

G. Edward Griffin, author of The Creature from Jekkyl Island (a must read), works tirelessly to dispel the notion that the Fed has been a failure. His latest effort was at the just-concluded Casey Research/Sprott Inc. investor summit on Navigating the Politicized Economy, where he told a packed hall that the Fed has been wildly successful at its true mission – to protect the banking system at all costs. According to Griffin, the problem is the American people are footing the bill for these costs through stealth taxation, thanks to the coordinated actions of the Fed and US government.  Watch what Griffin has to say in his interview by clicking the link below.
http://www.youtube.com/watch?feature=player_embedded&v=-X5ISQJEpV0

"Give a man a gun and he can rob a bank.  Give a man a bank and he can rob the world." - Jim Trotter

"Banking establishments are more dangerous than standing armies."  - Thomas Jefferson

If you haven't attended a meetup to learn what those green things in your wallet are really worth, I invite you to attend the next meetup in October.  Remember, you don't know what you don't know.

Best,

John Montoya