Gold and Energy Advisor: Gold, Oil & Energy Markets Investment Research
James DiGeorgia, Mr. Macro
- Chief Editor -
Mr. Macro
Geoff Garbacz, Mr. Micro
- Chief Strategist -
Mr. Micro
Dan Hassey, Mr. Retirement
- Senior Stock Analyst -
Mr. Retirement

Gold and Energy Advisor's Real Wealth

Real Wealth #287  12/06/2010



Silver Breaks to 30 Year High; Gold Bursts to New Record High!

Dear Subscribers,

Gold is on a tear up over $18 to a new all time high of $1424. Silver breaks to a 30 year high.

The general consensus among traders, hedge and money mangers was that today's rally was in part fueled by the CBS 60 minutes interview of Federal Reserve chairman Ben Bernanke aired on Sunday. Bernanke said during the interview that the Fed would consider expanding its quantitative easing program if it was needed.

During the interview with CBS' 60 Minutes, Bernanke made it clear the central bank could expand its $600 billion bond purchase program in order to combat high unemployment. "We're not very far from the level where the economy is not self-sustaining," he told CBS.

Keep in mind that the rally in Gold and Silver is coming at the same time that the U.S. Dollar has been rallying. If the U.S. Dollar was sinking like it has most of the year, gold would already be trading over $1500.

There are a lot of shorts in the gold market right now and it may well be the shorts in the futures and options market that drive gold to the $1500 by the end of this year – even if the U.S. Dollar holds steady.

My prediction for gold and silver for 2011 is dependent on how high both precious metals climb by the end of the year; with one intelligent caveat. At any moment of any trading day gold could catapult to over $2,000 should an exogenous event take place. For example....

  • If Spain or Italy's economic problems cause another Euro or banking crisis.

  • Another large scale terrorist attack takes place.

  • Wicki Leaks releases documents from a Major US Bank that shows there was rampant fraud or that loan losses have not been honestly represented.

These are just a few hypothetical cases beyond a short squeeze that could pop gold to $2,000 in short order. I continue to recommend buying 1 ounce Buffalo's and American Eagles Certified Gem Uncirculated MS70 condition. Yes, you're paying a premium for the quality and certification but its well worth the premium should our government ever go the way of the 1933 gold seizure. Right now the thought of the government collecting your gold and silver seems wild and unfounded even though it has happened less than 87 years ago. In the future should economic chaos hit; gold jump to $5,000 an ounce there's no guarantee the politicians and bureaucrats won't go after your gold. By buying MS70 quality you'll be able to claim the coins as collectibles which were exempt in 1933.

I also love Choice Uncirculated MS65 and Gem Uncirculated MS66 Graded and certified (PCGS or NGC) Saint Gaudens $20 Gold coins struck between 1907 and 1933. To get current pricing on the NGC or PCGS graded American Eagles, Buffalo or Saint Guadens that I am recommending please call Finest Known and ask to speak to one of my gold specialists at 1-866-697-4653 tomorrow after 10 AM.

Best Wishes,

James DiGeorgia

Editor and Publisher

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