Thursday, January 3, 2008

When The Leeve Breaks

Bang! Boom! And their off... Gold +23.40, Silver +.38, Oil +3.64, Wheat +.30 [daily limit up], Corn -- The price reached $4.695 yesterday, the highest for a most-active contract since June 1996, Soybeans -- The price yesterday reached $12.64, the highest for a most-active contract since June 1973. O yeah, and the Dollar tanked...

What does it all mean? Well, if you like tofu, you're going to need a second job to pay for your mealy habit. The price of food isn't going to be getting cheaper anytime soon. Your commute to work is going to get even more expensive. Your Gold and Silver portfolio is leaving orbit and has it's sights set squarely on the Moon...yep, it's still up there. And lastly, it means NONE of these clowns that covet the big chair at the White House have even a clue of what they're all angling to get themselves into. [I heard a rumor there was an election this Fall]

At the time I heard this rumor a small factoid was dropped on the listeners: It has been 80 years since a Presidential election last featured two candidates where neither nominee was an incumbent President or Vice-President. In 1928, Herbert Hoover won in a Landslide. In his acceptance speech a week after the Republican convention ended, Secretary Hoover said: "We in America today are nearer to the final triumph over poverty than ever before in the history of this land... We shall soon with the help of God be in sight of the day when poverty will be banished from this land." History has documented well the eventual futility of that statement. History calls it The Great Depression. Be vary wary this year of candidates "promising" to fix things and make them better...

Word Of Gold Rush Spreading
by Sean Brodrick

Gold logged big gains in 2007 — up about 30% for the year. I believe the yellow metal should do even better in 2008. I wouldn't be surprised to see gold crack the $1,100 barrier in 2008, and probably go higher than that. Let's look at a few reasons why ...

Force #1: Tightening Supply-Demand Outlook For Gold. Gold comes from a bunch of sources. Mines are one. There's also central bank selling and sales of gold scrap. Another source is hedging, or forward selling of gold production by miners — that's different from regular production in that it locks in future sales of mine production at a set price and helps price stability.

Taken together, these make up the total supply of gold. And despite soaring prices, the total supply of gold is barely keeping up with demand.

Force #2: New Demand From Gold Investment Vehicles. Worldwide demand for gold as an investment rose to 138 metric tonnes in the third quarter, up a stunning 618% from the 19.2 tonnes in the year-earlier period!

Exchange-traded funds that hold physical gold — GLD and IAU in the U.S., GOLD in Australia, GLD in Johannesburg, GBS in France and Britain — held approximately 741 metric tonnes of gold at the end of November — up from just 39.4 tonnes in 2003.

The huge rush of gold buying by the ETFs is helping drive the market — the easier it is for investors to buy gold, the more they buy, and the higher the price goes.

Force #3: Global Mine Output Is Falling. Global gold production was down a full 3.1% in 2006 and was nearly flat in 2007.

Barrick Gold CEO Gregory Wilkins recently told the press:

"There's not much gold out there."

In fact, Barrick expects gold production will fall 10-15% below market expectations over the next three to five years!

Wall St start to new year worst in 25 years
US blue-chip stocks on Wednesday suffered the worst start to a new year in 25 years after an index of manufacturing fell sharply, raising fears that the US economy is slowing more than expected.

Energy stocks were a lone bright spot as crude oil prices touched $100 a barrel, but the spike in crude accentuated selling of a broad range of transport and industrial companies. Technology stocks were particularly weak after an analyst downgraded several semiconductor companies.

What about mining stocks? The HUI INDEX was up 6.29% and the XAU INDEX was up 6.35%. This is all the proof I need that Gold and Silver remain ignored investment vehicles by the "media". We all know this will be changing soon, but when the average investor finally shows up, Precious Metals are going to be very expensive. These sale prices we've been experiencing won't be lasting much longer. To be sure, there will be many "sales" during our trip to the Moon, take advantage and buy more!

COMMODITIES-Oil hits $100 as 2008 starts with investment binge
Forbes - By Alden Bentley NEW YORK (Reuters) - Crude oil surged to $100 a barrel for the first time on Wednesday, and gold bullion broke above its 1980 high as the first taste of investor sentiment suggested commodities were the flavor of the new year.

CNBCFed Officials Lowered Growth Outlook at Last Meeting (Update4)Bloomberg - By Scott Lanman Jan. 2 (Bloomberg) -- Federal Reserve officials said economic growth in 2008 will fall short of their own forecasts, reflecting weaker consumer spending and a deeper housing slump.

"And when the levee breaks, have no place to stay." Page, Plant, Bonham, Jones

You've got that right boys. That is unless of course you've had the forsight to invest in Gold and Silver. Save yourself, save your loved ones, and ditch your dog. Buy Gold and Silver NOW!

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