Gold to $2000 and silver to $50 Soon!!

The Federal Reserve is now onto QE2 and printing more and more money. There are consequences to each and every action and surely this will result in inflation down the line. Inflation has been described as a “painless” method through which a country devalues its currency. It’s like turning on the car in your garage and letting the carbon monoxide slowly put you to sleep. In most western countries the public is being dumbed down by the government run public schools. They count on the fact that 9 out of 10 people don’t understand what inflation means. It is an insidious way of robbing people of their hard-earned money and transferring it to the very rich people.

This is going to mean less money for pensioners and people who are conservatively saving their money, and more profit opportunities for the financial industry. As the saying goes: “the rich get richer and the poor get poorer” and that is certainly what we are seeing around the world.

As the work dries up, people can no longer find permanent employment, they need to rely on temporary work, maybe having two or three part time jobs, or contract work just to make ends meet. It can be harrowing for families who are just trying to survive in the current economic climate. But what they don’t realise is that the powers that be are making the situation even worse through their actions.

In the US, for example, they allowed the FASB to turn a blind eye to the actual values of the banks’ assets and let them value their assets at ridiculous prices that would never fetch those amounts if they were actually to sell them. And secondly the government stood behind Fannie Mae and Freddie Mac and this as resulted in over $1.5 trillion in debt obligations of these insolvent companies.

The situation is getting worse not better.

If you haven’t already done so, consider getting yourself some gold and silver bullion. Whilst the prices may look high, in the months and years today’s prices will look extremely inexpensive. So while you are still able to buy precious metals and have them in your possession, go ahead and do it. Don’t be kicking yourself saying that you wish you would have bought some sooner.

In my opinion as I said several years ago, we will see gold at $2000 an ounce and silver at $50 an ounce in the not too distant future.

Financial Predictions 2010-2011

Many of you will remember the financial predictions I made a couple of years ago. My first prediction was for gold to be going to $1500 – when it was just under $800 in October 2008. When it got to $1000 an ounce everyone said it would not be sustainable and it would surely drop. Then when it got above $1100 an ounce, everyone said that was impossible – and then it hit $1200 an ounce – and today it’s at $1345 an ounce on October 7th 2010 – just two years later!!

One of the theories about gold is that it holds its value over time. Indeed it is said that in King Nebuchadnezzar’s time an ounce of gold was worth 350 loaves of bread and depending on the unit of measurement that was used at that time, and the unit of measurement that we use today, that same ounce of gold might still be worth 350 loaves of bread. If we use the current price of gold against the current price of a loaf of bread – so for example an ounce of gold at the time of this writing is $1345 an ounce and the price of bread is about $3.85 a loaf, thus showing that the purchasing power of gold has not diminished since biblical times.

I predict that gold will go to $1650 within the next few months and within 2011 don’t be shocked when it goes to $2000. That’s my prediction for gold in the next 15 months.

Do you remember when I predicted that silver would go up tremendously in value when at the time it was only $12.00 an ounce. Today it is almost double that amount – only 2 years later at nearly $23.00 an ounce. I am predicting that within the next 14 months it will go to at least $37.50 - $45.50 an ounce.

Silver is used in so many different applications: the technology industry, computers, medical advancement and equipment and its uses continue to grow so the price of silver is likely to increase.

People will try to get you to invest in gold and silver funds or mining stocks. DON’T DO IT! Make sure you are in possession of your gold and silver coins. I am predicting that most of those mines will eventually play out and you will be left with paper that’s not worth anything at all.

I’m going to make another prediction – as many of you know, I used to own a very successful property investment business. When everyone said that the real estate market in the UK was going to collapse, I had faith it would not and during those years I was right and the real estate market did not collapse and my properties increased a great deal in value. The properties that my clients bought increased substantially in value.

So I am making another prediction: As we have already seen, real estate has taken a tremendous nosedive – and if you are thinking of investing in the deflated property market and getting a wonderful bargain now – my prediction is that within the next 15 to 24 months the market will topple another 10-20% below what it is now.

As I have told my clients, don’t buy that house you have got your eye on as an investment or you will lose money. Only buy that particular property if you intend to live in it. Then if the market drops, you won’t be relying on it for investment returns and you will be able to ride out the dips.

Diamonds will always be a good investment. Precious metals will go up and down but essentially they will still be a good investment. During the time that they go down in price, if you can afford to hold onto them, do so – because my prediction is that they will always retain their value just not necessarily at the time that you think that they should.

Anything that has to do with survival will be a good investment. Anything that has to do with health care will be a good investment. Anything that has to do with sustainable energy will be a good investment. If I had room on my back lawn I would put up a windmill to generate electricity. Anything that has to do with solar energy will be a good investment.

And just like playing poker – you have to know when to hold em and when to fold em!

In speaking of survival – don’t forget to buy my book on Surviving the Global Financial Crisis – you can get it as a download or you can buy it from http://www.amazon.com or on my website http://financemoneybusiness.com. It’s a small book chockfull of big ideas on how to survive and thrive in the upcoming changes.

Gold going higher and higher!! Don't miss the boat!

Gold going higher and higher – don’t miss the boat!!

Today gold is at USD$1340 an ounce and rising…….silver is at USD$22.80 and rising…..of course nothing goes up in a straight line and there may be dips and bumps along the way, however, you can be sure that gold will go over $1500 an ounce very soon. For those of you who are unaware of this one of the triggers for precious metals going higher in the not too distant future is the revelation that mortgage fraud is huge in the US and it is just being unraveled. It turns out that many banks do not have the proper title to the homes on which they are foreclosing and therefore they lack the legal right to foreclose. In a nutshell, the subprime lenders, trusts and banks did not keep good records and in two states there are now civil class action suits against them. This latest public information is yet another reason for the gold bull run we will see in the coming months.

Hold on tight, put your seatbelts on and get ready for the turbo charge!!

http://www.financemoneybusiness.com

Gold reaches new highs

The price of gold went over USD$1284 this week and this trend it set to continue. What are the reasons for this? It’s very likely that during the rest of 2010 we will see a worsening of the crisis. Billions upon billions of dollars have been swallowed up by the banks, billions and billions of dollars have been pumped into the economy to no avail. Unemployment hasn’t stopped growing, the US housing market remains depressed at historically low levels and one in five Americans is out of work. In the press this week there were reports that one in seven Americans is on the poverty line. This does not bode well. I think we are building up to a very dangerous time in the world economic and financial system.

Two years ago and repeatedly since then I have recommended that you put a good portion of your fiat money into gold and silver bullion and those that have heeded this advice have done very well so far. However, for those of you who think that gold is already much too high, think again. Yes, of course, like any precious metal it is volatile and it could go down to the $1100’s again, but it will surely rise again like the phoenix out of the ashes. So for those of you who are still on the fence, try to make a decision quickly as gold will go to $1500 and beyond within the next 6-9 months.

Could Gold Get Confiscated Again?

Another invasive law has passed in the US which states that any payments to a vendor of more than USD$600 will have to be reported to the IRS. I am anticipating that more and more material about this law will start appearing on the internet and in the press. This law will affect virtually everyone in the US who has business to business dealings. It could well lay the groundwork for a VAT tax similar to that in the UK and Europe or GST in NZ. This law could reignite fears that the US government could confiscate gold. This would make the government aware of its citizens gold transactions and make it more prone to confiscation.

Traditionally, precious metals dealing have provided a last haven of non-reportable financial transactions. With this current legislation, the status of gold and silver as an anonymous purchase is breached.

What can you do about it if you are a US citizen and you still want to buy gold and silver?

1. Use dips in the gold price to top off your portfolio before the 2012 proposed implementation date of this law
2. Document your purchases so that, should you ever be dragged in to explain the source of funds you used to buy your gold in a subsequent sale, once the regulation is in place, you are ready with the answer
3. Consider opening a safety deposit box at a reputable Canadian bank, then make occasional gold buying/storage trips up north or if you have relatives or friends in other countries, consider having them buy and store your gold for you.

My advice is that no matter where you live, you need to be aware of new legislation that could affect the safety of your ownership of precious metals. As our monetary system worsens, governments will be looking for all kinds of sneaky ways in which they can rob us of our wealth.

If you would like a personal consultation about how to protect your wealth during these uncertain times, please don't hesitate to get in touch: www.financemoneybusiness.com

Gold at new all time highs - where to from here?

In Dubai, a hotel has installed a vending machine for their clients to buy gold instantly. Prices are electronically displayed and change as the price of gold fluctuates during trading hours. Many European cities have made it more accessible for the average citizen to purchase gold. However, has gold become mainstream yet? Not really. Most people don’t know how to buy gold, what to buy, where to get it from, what the premiums are, who should store it…..instead they put their money into banks, stock markets, pension funds, mutual funds….indeed all “paper” assets. These paper assets eventually, in this environment of spiralling debt, may well become worthless. Gold has been a store of value for thousands of years. The Central Banks are buying up gold. For those of you who have not yet bought some gold, consider have a portion of your wealth in gold bullion just in case the whole system goes belly up.

Clients are asking me whether maybe its time to sell because gold has reached such a high level. My view is that with the uncertainties in Europe, from Greece, to Portugal, Spain and Ireland, the bankruptcy of at least 30 states in the US, the plummeting of the British currency and the ballooning of debts worldwide, we are far from complete with the current economic crisis. Some experts are predicting a huge drop in the price of gold – and indeed, I think we will see tremendous volatility in the months to come. However, for each fall, we will see even greater rises. Even at $1229 at the time of writing this blog, to some this seems very high. But it is likely we will look back on this figure and see it as a cheap entry into a metal that will continue to skyrocket.

If you don’t have to sell your gold, don’t. Stay the course. It will go to $1500 and beyond. This is just the beginning.

Dow over 11000 – is this a bubble or will it crash??

This is the question on the minds of many of my clients and students. There is no doubt that few thought that stock markets around the world would make such strong rallies. And these rallies are far from over. Vast amounts of money have been pumped into the system and I would expect the rallies to continue for several more months. The question is, when do you get out? There will be those who are experienced speculators and they will know when to take their money out. However, those who have been lured back into the stock markets due to low interest rates on savings worldwide, may find they are in for a huge shock. At some point, the markets will go down considerably, and those who have put their faith into a financial advisor, unit trust, mutual fund….may find that they are caught short and that they lose most of their capital. This is my greatest concern in the months to come. Those with experience and those who watch the markets avidly and research their results carefully, will probably do very well out of the extreme volatility to come. Those who rely on others for their information, who give over responsibility for their hard-earned savings to institutions would do well to consider having at least a portion of their wealth in physical gold and silver.

There is no currency that I can identify in monetary history that has been able to put up with the abuse the USD has had without a major currency crisis happening, a major devaluation. I expect this to happen within the next couple of years.

Just over a year ago, my target for gold was USD$2000 per ounce, now it is over $3000 per ounce. Even now, people are not waking up to the possibility of high inflation eroding their savings and assets.

Silver is more rare than gold and is so cheap at the moment – just $17.67 at the time of writing. Bearing in mind that silver went up to $50 an ounce in the 1980’s, surely it will go well above that in these turbulent times.

So please, if you have not already done so, get a small amount of gold and silver to protect yourself for the future upheavals in our global financial systems.