Protecting wealth from a crashing dollar
To celebrate thirty years of inspiring America to rediscover gold, Swiss America has released their 2011 educational DVD entitled "A RARE OPPORTUNITY" featuring Pat Boone FREE to you today!
A RARE OPPORTUNITY will help you understand why today gold still offers excellent buying opportunity for safety first, then profit, as we enter the next stage of this bull market.
A RARE OPPORTUNITY covers all of the basics investors need before buying gold, including; six major forces driving gold higher, five steps before buying gold and four types of gold worth owning.
A RARE OPPORTUNITY features excerpts of CNN, CNBC and FOX NEWS interviews with Swiss America Chairman Craig R. Smith discussing the bull market in gold and why the dollar's value is crashing.
Call or register online to request your complimentary "Gold Rush 2011" kit - a $30 value! Gold in your IRA?
P.S. Why $1,600 Gold is Still Cheap!
August 2, 2011
BY PAT BOONE
Precious metal prices soared to new heights this week on safe haven buying amid growing U.S. debt and credit downgrade threats, with gold topping $1,630 an ounce and silver trading near $40 an ounce.
According to author and Swiss America Chairman Craig R. Smith, "Gold, priced in declining paper currencies, is telling the truth about the geopolitical economic realities the world faces and about the miserable condition of both Europe's and America's fiscal houses."
Today gold prices are fairly valued and are on a trajectory to double again. Why?
Two compelling reasons you must own gold now:
1) Gold is not in a bubble! The "real" price of gold today is between $600-$682/oz.
The New York Times last week quoted economist Edward Yardeni saying, "The price of gold is up at a record high in all the major currencies, suggesting that out-of-control governments are a worldwide plague. In real terms, using the CPI as the price deflator, the price of gold rose to $682, below the record high of $865 during January 1980."
Mr. Yardeni's "Nominal vs. Real Gold Price" chart contrasts today's $1,600 per ounce 'nominal' gold price with a 'real' price of $682 an ounce (in 1980 dollars). That's over a $900 price difference, which reflects a declining U.S. Dollar and the rising cost of living over the past thirty years.
Using the government's official (and very understated) Consumer Price Index (CPI), $1630/oz. gold equates to $606/oz. gold price in 1980, after adjusting for inflation. That's a difference of $1,000/oz., illustrating that gold will NOT surpass a 'real' high until the price tops $2,400 an ounce.
Artificially-low official government inflation data is a key political/economic tool used to fool the public into accepting the new "Inflatocracy," which is detailed in the new book The Inflation Deception: Six Ways Government Tricks Us...And Seven Ways to Stop It! by Craig R. Smith and Lowell Ponte.
"How many Americans would buy gold this very moment if they knew the 'REAL price' was between $606 to $682 an ounce?" asks Mr. Smith.
Amid widespread speculation about whether the decade-long bull market in commodities and precious metals can continue, The Inflation Deception authors Craig R. Smith and Lowell Ponte are now convinced gold prices are destined to rise above $2,500 to $4,000 an ounce over the next decade unless government slashes spending and debt.
Political and economic confusion is rampant among investors as to the safest place to park assets right now.
Gold is being called a "bubble," "non-money," while stocks and bonds are touted by financial networks and even by our Fed Chairman Bernanke as "safe havens."
"Nothing could be further from the truth! Paper currencies are in an accelerating race to the bottom as nations push their debt limits to astronomical highs," says Mr. Smith.
2) Rising gold prices reflect unsustainable U.S. debt. This 1940-2011 U.S. Debt vs. Gold Price chart illustrates that as the debt has gone parabolic over the last decade gold prices have followed.
"Ironically, it is profligate government spending which virtually guarantees gold prices will double again over the next decade," says Mr. Smith. "Just do the math!"
Mr. Smith believes gold is currently priced fairly in comparison to our national debt levels, with a slight added risk premium.
"In 1999, for example, our national debt was $4 Trillion; 12 years later we are at $17 Trillion (once the debt ceiling is raised), which is more than a four-fold increase. In 1999 gold prices traded at $300 an ounce; 12 years later we are at $1,600 an ounce, which is more than a five-fold increase."
According to U.S. Government statistics, the national debt was $370 Billion in 1970 and nearly tripled to $907 Billion by 1980. Gold traded at $38.90 in 1970, yet climbed to a high of $850 in 1980, over a twenty-fold increase.
The 1979-80 gold rush exemplifies a temporary geopolitical and inflation-induced price bubble. This unprecedented convergence of factors driving gold in 1979-80 included; the Russian invasion of Afghanistan, the Iranian hostage/oil crisis and double-digit inflation under President Carter. By 1981 these crises were under control, thus gold prices leveled off near $400 an ounce.
"We are NOT in a gold price bubble today," says Smith.
For “gold bubble” talk to be valid, prices would need to rise twenty-fold from the 1999 level ($300/oz.) to over $6,000 an ounce!
Today gold prices are an accurate barometer of unsustainable spending and the debt now undermining the U.S. Dollar as the world's reserve currency and as a reliable store of value.
Now is the time to own gold as "wealth insurance" against a potential U.S. credit downgrade which could cause a dollar crash and explosive inflation!
Take it from Pat Boone... this vital information from Swiss America will help you "learn before you earn" and put your family on "the yellow brick road" toward establishing your own gold standard today!
Register here for Swiss America's "2011 Rare Opportunity" DVD, "Economic Solutions" and "21st Century Gold Rush is No Bubble" Special Reports (a $30 value) – ALL FREE in this special offer!
In less than an hour you'll understand the basics of protecting you wealth.