More Reasons Why Gold
Could Still Go Higher…
In our August 17 newsletter, we told our readers that gold was likely set to soar.
At that time, one ounce of gold was selling for $1614.75.
Within a week, gold shot up $50 and ounce. As of this writing, gold has climbed to $1784.50. That’s a 10.5% gain in about a month.
We mention that not to brag about our predictive ability. Instead, we want you to realize that the case for gold is still a good one. The fundamentals are still in place.
And today, we’ll show you that the case for gold is, in fact, even stronger than a month ago.
(Get complete guidance on buying gold plus 14 other wealth building strategies right here)
Why Gold Is Stronger Than Ever
So how could the case for gold get better?
Remember, we need to understand the value of owning gold from a “big picture” or “long range” point of view.
We call that a macro view of economic conditions.
And the macro-economic outlook definitely favors gold.
Here’s why: The economy (and the promised recovery) continues to sputter … but nothing is being done to actually fix the problem.
Our economy has a gaping wound but the Fed tries to fix it with little band-aids.
Meanwhile the vitality of our once-vibrant nation continues to gush out the sides.
Record unemployment. Sky-high inflation. Out-of-control spending. Explosive debt buildup (both at the government and consumer level). Plummeting home values. Social unrest.
It’s the perfect setup for chaos. And gold is the perfect chaos hedge.
Last month we showed that these chaotic macro conditions should have allowed gold to climb up to at least the $2000 per ounce level (based on trends).
Instead, the price of gold had been in a holding pattern for nearly nine months.
That created a “squeeze” that was sure to burst open sooner of later.
We likened it to a plugged tube of toothpaste. You squeeze hard enough and eventually the clog bursts open and the paste splats out in a hurry.
That’s what’s been happening in the last month.
Which leads to another question…
How High Will Gold Go?
As we mentioned last month, most conservative analysts pointed to the $2000 per ounce mark in the short term (including the prestigious Austrian-based Erste Bank).
But we’re not interested in trading gold for short term profits.
We’re buying gold now in anticipation of the Greatest Wealth Transfer Ever.
And since our August prediction, that huge wealth transfer just took one giant leap forward.
Several leading gold experts are throwing out figures like $5000 per ounce as an upper target.
Others are pegging that number higher. Some, much higher.
We don’t try to guess at numbers like that, but it’s become obvious that gold is poised to make a solid run higher.
And a lot of that is thanks to the folks at the Federal Reserve…
Newsflash: The Fed Loves Gold
The Federal Reserve in their September meetings threw open the gold floodgates once again.
By announcing a new round of money-printing (commonly called QE3), the Fed assured us that gold will continue it’s unabated march higher … and ultimately, the sky’s the limit.
Let’s go back to that toothpaste example. If you are squeezing on the tube and it finally breaks loose and squirts out, that surge only lasts for a moment. There is only a limited amount of paste in the tube to come out.
But imagine if someone stuck a syringe in the back of your toothpaste tube and started back-filling it with new toothpaste.
As long as there was new paste flowing into the tube from the back, and you kept the pressure on to squeeze it out…
…that paste could continue to flow out the front … indefinitely.
And that’s what’s happening now with gold.
The macro-economic pressure is still there to squeeze the price of gold higher … but now with a twist.
In its previous quantitative easing efforts, the Fed always announced the duration of it’s money printing efforts.
And these periodic money printing sprees always had a positive effect on the overall market … at least in the short run.
Investors know that the new influx of money will help buoy up a sagging economy … at least for a while.
The price of gold usually get’s a good push upward too. Mainly because gold bugs fear the money printing will increase inflation. Which it will.
That fear of rising inflation will continue to steadily pump up the price of gold as long as the new inflows keep coming from QE3.
And that’s a key here. You see, this time around, the Fed did not put an end-date on their funny-money printing.
They’ve promised to inject $40 billion into the economy each month … for as long as it takes.
Like the syringe filling up the toothpaste tube from the rear, the Fed will continue to boost the price of gold with its no-end-in-sight monthly injections.
That open-ended promise is what could easily fuel a gold price surge into the stratosphere.
But that’s not even the most important factor…
The Real Reason
Gold Is Still a Bargain
Here’s something most people aren’t talking about (except us)…
The threat of higher inflation (which is already here) is not the real reason to own gold.
It’s the threat of future chaos.
You see, the real threat to our financial system with money printing is that it artificially props up our fragile economy.
Each round of freshly printed (electronic) dollars pumps the economic bubble higher and higher.
The higher they pump it up, the farther it has to fall … and the harder the crash will be when the Fed money bubble pops (and it will).
That’s going to create unprecedented chaos…
…and likely the greatest wealth transfer in the history of the world.
Buying Gold (or Silver) for the
Great Wealth Transfer
In the meantime, it’s very possible that the price of gold will dip again. It may even re-test the $1500 per ounce range of the past summer.
Newbies will panic … but we’ll view a correction like that as a buying opportunity.
That’s because our gold-buying (and selling) strategy is based on the guidance of several experts in the field who have developed superior macro-economic models.
They’ve steered us away from several huge pitfalls you absolutely must avoid when buying gold…
… and clued us in to the most savvy (and profitable) ways to buy, store and sell gold, silver, and other precious metals.
Plus, our expert CPA offers strategies for HUGE tax savings when buying and selling gold (and warns about possible disastrous repercussions if you don’t buy gold or silver the proper way).
The EVG membership site has everything you need to know about buying and selling gold. You won’t find most of these strategies anywhere else.
In short, by joining EVG today, you’ll discover the answer to these secrets:
- The ins-and-outs of how to buy gold at the best price,
- The best type of gold to buy (coins, collectibles, bullion, bars, etc.),
- Where to store your gold,
- How to maximize your tax advantage when selling your gold
Plus we’ve even set our members up with a link to buy gold at a discount.
If you’ve been sitting on the fence about buying gold or silver, this may be your last chance to get in before the price skyrockets again.
Get your gold guidance right here.