By David Bradshaw, Editor RMP
Jan. 26, 2007
Which will it be to erupt first; the U.S. debt/credit bubble or gold prices?
After two decades of being a diligent student of the financial markets one learns to listen carefully for rumblings and watch closely for smoke signals to confirm what must soon erupt.
Common sense says the next financial volcano to erupt will push the price of gold to lofty new heights. Experts see gold easily doubling again between 2007-2012.
Investors today are looking for opportunity with limited risk. They want investments that are trustworthy in a scandalous world. In short, they want a shiny alternative to the Wall Street hype which usually lacks substance.
With every passing day gold is viewed worldwide as "real" money and the U.S. dollar is viewed as "confidence" money -- in a world that has less and less confidence in paper promises from governments.
These 24 reasons why gold prices must rise have been extracted from some of the best financial minds of our time and are featured in Swiss America's 25th Anniversary issue of Real Money Perspectives, "The Future of Gold".
24 Reasons to Own Gold� NOW!
1. Gold is still by far the optimal choice for most investors
2. Likely ruptures in the stability of the global-money system
3. $650 gold prices will eventually peak well above $1,000
4. The most powerful factor affecting gold is monetary inflation
5. 2007 gold supply/demand dynamics: irreversible changes
6. Gold's downside risk is paltry compared to the upside potential
7. Some insiders see gold saving the US dollar as reserve currency
8. Central banks buy gold to diversify reserves away from dollars
9. Portfolios designed to hedge inflation must be bedrocked in gold
10. Shortest commodity bull market is 15 yrs, the longest 23 yrs
11. Gold now accepted as fourth global currency (with $, Eu, Y.)
12. Most bullish: gold's still in a 'stealth' bull market from the public
13. Investors should worry less about good/bad gold entry points
14. Commodities now an asset class for the first time in history
15. Gold is coming out of the closet and the press is taking notice
16. Price corrections are a sign of a healthy bull market, buy dips
17. If there is any shooting in Iran, gold/oil will go through the roof
18. Hard currencies (gold) boom as people notice currencies fall
19. Gold market knows inflation already here, explaining 2006 surge
20. More and more investors allocating more resources into gold
21. Gold you hold in your hand: Numismatic coins or bullion best
22. Gold gaining strength from ETFs, corporate and pension money
23. A gold bubble 5-7 years out could launch gold above $5,000/oz.
24. Regardless of what the media says, gold prices are still cheap
Boil it all down to this: today gold offers unparalleled safety, privacy and profit potential � just as Swiss America has said for a quarter century.
As for my personal projection for gold prices; I beleive that gold will ultimately rise to four, perhaps even five-digit prices -- as the public's confidence in the world's paper currencies unravels.
A Rare Second Chance
In "The Future of Gold", Dr. Fred Goldstein, Sr. Broker at Swiss America
explains why it is still not too late to get in on this 21st century
gold rush with the best form of gold -- U.S. rare gold coins.
"If you have not yet taken action in acquiring a position in gold, you now have a rare second chance to buy high quality U.S. gold coins at last year's prices.
"The fundamental reasons for buying gold are very clear; trade and budget deficits, geopolitical problems, increased commodity prices, a weakening dollar, and increased costs of living, etc. Yes, we've been saying this for several years. What we haven't said is that you're not too late to join the gold rush.
"Although many $20 Double Eagles have doubled in price since 2001, their prices today are trading as if gold is still under $500 an ounce!
"Experts say commodity bull markets last between one and two decades, and during the first five years the public rarely participates. It's our belief that as gold prices continue rising the public will get more and more involved, and once again Double Eagle gold coins will skyrocket.
"With U.S. gold coin premiums at record lows, we believe the downside risk is limited while the upside potential is enormous. Call your Swiss America representative to get the latest price quotes as well as the availability of these historic gems.
Read more about it in "The Future of Gold".
DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of Swiss America. Past performance of any investment is no guarantee of future performance. All investments have risk.
