Real Wealth #232 06/12/2009
Bond Market Meltdown Approaching and Buffalo Gold Coin Update
Late last week I offered a special group of Flawless Gem Uncirculated 24K US
All 125 coins offered were sold quickly. We actually had to turn some people away. The plan fact of matter is they are becoming very scarce now that the U.S. Mint has decided not to mint these any longer.
These Buffalo 1 ounce gold coins are among the most gorgeous U.S. gold coins ever struck and are the first legal tender .999 fine 24-karat gold coins ever struck by the U.S. Mint. They were struck from 2006 through 2008 but U.S. Mint has been so over whelmed with demand for its gold coins that it has chosen to discontinue the
We’ve spent the last several days searching the entire country, checking with big and small rare coin and precious dealers alike and have discovered that there are virtually no MS70 NGC Buffalos on the market. Clearly collectors and investors are grabbing them up now that the mint has suspended production.
Literally a few minutes ago we finally located a small group of these coins 50 coins. I believe the premiums on these gold coins (what collectors will pay over the price of gold) could double even triple once investors really figure out how hard these coins are going to be to find. So as a strict gold play this is really a great opportunity.
These gold coins are now selling for as much at $1950 a coin by retail dealers if they can find them.
This small group of 50 coins is available for just little more than what much more common MS70 U.S. 1 ounce Gold Eagles. Call 866-697-4653 for our up to the minute quote.
Remember we just have 50 coins to offer. When their gone they’re gone!
Below you’ll find a fascinating article written by John Myers of Myers Gold and Finance that I think is a must read. While the stock market is rallying today both oil and gold are steadily rising also. Don’t let the current euphoria in the stock market blind you. There’s real trouble heading our way...
Bond Market Meltdown
Forget the printing press; the bomb that will blast gold prices into the stratosphere is the coming collapse in the Treasury Market
This past Monday I spent lunch at an eatery in downtown
Any signs of a Great Depression where noticeably absent. The restaurant was packed and across the street three giant cranes ground along, building up the base of what promises to be another hulking skyscraper.
I was lunching with my brothers, one of them Richard, a senior partner with
A long-time associate of Rick’s has been commenting on how the
It is, of course, an anachronism that the U.S. Treasury is printing money. What they are doing instead is creating debt and they are doing it without paper or ink. They are doing it with keystrokes on a computer.
There is actually less than $600 billion in total currency in circulation. Most of it is offshore. And if all those bills and coins were sitting in some giant repository, there wouldn’t be enough of them to bailout the banking industry.
What is really being pumped at an unprecedented pace is debt.
The graph below shows that the
You can see that national debt now equals close to 80 percent of the nation’s
If you think that’s not so bad; we did it before and came out of it fine, consider this: the huge debt burden of the 1940s was taken on to defeat fascism and imperialism. In victory that debt paid huge returns. American democracy and goods spread around the world and the
Today’s resurgence of debt is simply paying the bill for the party we had. We are in this position now because of low taxes, runaway spending and foreign wars. The borrowing being undertaken today isn’t to secure freedom but to simply keep the nation afloat.
And there is something else. In the 1940s through the 1990s,
Today the money we are borrowing is coming from mullahs, pontiffs and dictators. In fact, foreigners own $3.3 trillion in U.S. Treasury debt. And the
Rather than printing money,
As I have said before, more money does not mean greater wealth. Inflation is an economic Band-Aid. It is applied by governments that don’t have the courage to accept remedies that would cause a recession, or in today’s case, a depression.
Instead leaders almost always opt to prop up a soft economy by creating ever greater amounts of money. But nations that pursue this course are really no different than an individual that plays the futures market. Sooner or later they are going to face a margin call.
By buying up Treasury debt, other countries have enabled the
Heading for a Dollar Debacle
These countries have been happy to do this for the past three decades because until just lately,
That is no longer the case says Jim Rogers, the charismatic chairman of Rogers Holdings.
"I’m afraid they're printing so much money that stocks could go to 20,000 or 30,000"
"I would suspect that somewhere along the line...someone's going to say, 'I'm going to start selling mine before everybody else does,'"
Rather than put money into stocks,
To read all of
In Gold They Will Trust
While I agree with
The chart above shows the cost to nations that are holding the bag with U.S. Treasuries.
And I cannot harp on this enough. The gold market is extremely thin. Last week I pointed out that all the gold mined in the world this year will be worth around $80 billion. Yet, this week alone the U.S. Treasury will auction off $65 billion in new debt! If just a fraction of this money went into bullion instead of Treasuries, gold prices will quickly soar above $1,500 per ounce.
Action to take: Continue to add to your physical gold holdings. Next week I will have more on the Midas metal, including why I believe it is an incredible bargain below $1,000 per ounce.
Yours for real wealth,
Editor, Myers Gold & Financial Advisory
PS – I’ve been telling subscribers for years that they really must have some gold for insurance purposes. Apparently, a big insurance company wants this kind of insurance as well. Bloomberg reported last week that Northwestern Mutual, the nation’s third-largest life insurer bought $400 million in gold.
“Gold just seems to make sense; it’s a store of value,” said CEO Edward Zore.
Too bad the company didn’t opt for bullion a year ago. Some of the stocks in the insurer’s portfolio are down 96 percent since the crisis began (did somebody say General Motors?).
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