GOLD'S NEXT STAGE

INTRODUCTION: Gold's 'public era' arrives on time!
By CRAIG R. SMITH
CEO, Swiss America

Gold had a stunning start in 2008, soaring 10% in January (reaching above $925 an ounce) on the heels of more than 30% growth in 2007! Why?

The financial markets are betting that the Federal Reserve will slash interest rates, weakening the dollar and boosting the investment appeal of gold further in 2008.

The world will witness a gold price explosion this year, propelling the shiny yellow metal into the next and most exciting "public era" of this long-term bull market.

"Most investors haven’t been paying much attention to gold. Even though it’s gained 28% consistently each year on average since 2001, the mainstream generally hasn’t noticed," reports The Aden Sisters.

Back in January 2007, when gold was still near $600/oz., we reported this would be the year the 21st century gold rush hit the mainstream and gold would rise to $750-$850/oz. And so it did! Even conservative bankers like Citigroup are now calling for $1,000 gold in 2008.

Since the new century began I've been proclaiming the new gold rush, but mainstream America has been slow to listen. Since we first released "Rediscovering Gold in the 21st Century" in 2001 we've added a new chapter each day online at www.swissamerica.com and a new summary each year with our annual Real Money Perspectives newsletter.

For over a quarter century we've produced newsletters and CDs free to the public. In 2007, to help celebrate our 25th anniversary, we released a new TV special "GOLD 101" with Pat Boone compacting 25 years of experience into 25 minutes (if that's possible).

There's no longer any excuse for NOT owning gold. Even if you are financially stretched you can still protect your retirement funds by converting your IRA into precious metals, without any new contributions required!

* 2008: YOUR GOLDEN OPPORTUNITY -- By Dr. Fred Goldstein, Sr. Broker
A proactive investor is an individual whom is able to assess current economic trends and subsequently take advantage of probable outcomes. Wealthy investors are diversifying out of US dollars and moving into foreign currencies. Our strategy at Swiss America is helping proactive investors acquire quality tangible gold coins while the gold price is in a major uptrend.

* ANSWERS TO THE TOP 10 ECONOMIC QUESTIONS OF 2008 - Craig Smith interview

1) U.S. ECONOMY
The U.S. economy has been amazingly resilient over the last year, given the rising cost of living and housing crash. 2008 will be a year of surprises I think. As for the Fed, they are systematically driving the dollar down to help save the housing market and the economy, but this is just a quick-fix. The Fed has bowed to public welfarism.

2) RECESSION OR STAGFLATION?
We could be in for either a debt-induced depression, if the economy stalls... or a Wiemar Republic-style hyper-inflation, if the Fed prints too much money. This is a worst case scenario. Best case scenario would be the U.S. enters a mild recession in 2008 with steadily rising inflation. This deadly combination is known as stagflation.

3) FALLING DOLLAR
The dollar is slowly but surely becoming an 'I-O-U Nothing', a former Fed economist John Exter once said. Why? Because all true money must be derived from a commodity, or at least have a substance to back it up, or it will gradually become fraudulent, or fiat money. Every time the Fed cuts rates expect a further dollar decline.

4) RISING INFLATION
Americans will begin feeling the impact of the rising cost of living in 2008 as $90 a barrel plus oil prices begin to trickle down to the consumer. Crude oil fuels the entire U.S. economy, so rising prices will eventually find their way into the costs of all kinds of other goods and services farther down the chain. And that spells more inflation.

5) HOUSING BUST
It was astounding that you could get a mortgage at 4%, and this was all due to the Fed creating money and artificially lowering rates, which gets people to do the wrong thing. Builders do the wrong thing, and people borrow money and buy houses they can't afford. Many experts say it will be 2009 before U.S. home prices finally hit a bottom.

6) DEBT CRISIS
The U.S. national debt today is over $9 Trillion - up from $5.8 Trillion back in 2001. That's more seconds of time than God has created since Adam and Eve walked the earth! Like a ticking time bomb, the national debt is an explosion waiting to happen. It's growing by $1.4 billion a day - nearly $1 million a minute. What's that mean to you?

7) WALL STREET STOCKS
Stocks usually rise during presidential election years, but 2008 may indeed become the "Year of Surprises" politically and economically. In the face of all this uncertainty, some tech stocks like Goggle will likely fall to more reasonable levels, while others oversold financial stocks may rise on speculation that the worst is over.

8) GLOBALISM
Americans are fast becoming a service-industry nation, rather than a manufacturing nation, thanks to the new global economy and so-called "free-trade". You could say we're becoming a "may I help you?" workforce instead of a "may I build it for you?" workforce. Global outsourcing and open borders are crushing the middle class.

9) COMMODITY BOOM
Gold is a perfect example of a healthy long-term (or secular) commodity bull market, now moving into its 7th consecutive year in 2008. By that I mean that every time speculators try to drive prices up for short-term profit taking it allows the smaller investors to buy the dips. I expect oil prices above $100-$125 a barrel by 2009.

10) RETIREMENT STRATEGY
Retirement dreams are turning into nightmares for too many Americans today as they're watching the dollar and their nest egg shrink. Many are not aware that the U.S. Government has allowed all Americans to place certain types of U.S. gold and silver coins into their retirement plans tax-free since 1986. This is an excellent opportunity.

* GOVERNMENT STIMULUS A BAD IDEA - Craig Smith on FOX
To think that these politicians can fix a $12 trillion economy is laughable. If you believe in a free market you must agree that the best thing we can do is to get the government off our backs, out of our pocketbook and away from our kids. The markets need to work off some of these excesses and subprime mess.

* 47 ECONOMISTS EXPECT $2,200/OZ. GOLD VERY SOON!
The commodity super-cycle has swept gold prices to triple since 2001 -- but that's just the kickoff say the experts. How high will this bull market in "real money" and commodities drive gold prices over the next 5 to 15 years? Get ready to be shocked! Our list of forty-seven prominent analysts, authors and gold experts expect $2,200/oz. gold!

* PRIVATE WEALTH: A THING OF THE PAST -- By David Bradshaw, RMP Editor
Your holdings in stocks, bonds, cash, even gold (in most cases) are literally on display for the world to see today, unless you take some specific (and legal) steps to privatize your wealth. Owning paper promises for real assets can pay off, but your assets could also be wiped out with the stroke of the key on a computer keyboard. Few investors today hold any private wealth.

* GOLD: A CONSERVATIVE BUY with Liberal Benefits By Dr. Michael Savage
To "conserve" means "to keep and guard," which is a big part of what gold does, it guards wealth from political uncertainty, the higher cost of living, higher taxes, a weaker dollar and lower home values, etc, etc. Gold also grows wealth liberally, having tripled in value over the last six years.

* FLIGHT TO GOLD AS INVESTORS LOSE FAITH IN MONEY - London Telegraph
In the Middle Ages gold fetched nearly $3,000 an ounce in real terms. The price fell to nearer $550 when Spain flooded the world with Aztec and Inca riches, and there it hovered for three centuries. One thing is certain: gold will outperform paper as long as governments keep increasing the global money supply 15 per cent a year.