Real Wealth #289 01/28/2011
Dear Gold and Energy Subscriber,
Since its inception in 1928, The Brotherhood has officially opposed violent means to achieve its goals; but the Egyptian government has accused the group of a campaign of killings in Egypt and Syria and as a result has banned the group and imprisoned great numbers of its members steadily for the past 65 years.
Unless President Mubarak and his government are willing to violently suppress this growing insurrection, I believe we may be just a few weeks away from the unthinkable, the rise of a radical Islamic Theocracy in Egypt that will change the balance of power throughout the Middle East.
A few days ago I warned that the Iranian government is behind and fueling the change of Government in Lebanon and is directly involved in the uprising in Egypt. I warned that dark clouds are now forming in the Middle East that could fuel a flight of safety to gold and increase the fear premium on oil that could easily push it back into the $90 to $95 price range. Today’s events as I write this Real Wealth update have reversed the downward bias in gold and oil, each are up sharply.
A collapse of the Mubarak government along with the rise of a Hezbollah government in Lebanon will have a chain reaction throughout the Middle East. The PLO government that controls much of the west bank neighboring Israel could collapse and arms will pour into the Gaza strip from Egypt. A wide scale Israeli, Arab and Iranian war will no longer be avoidable.
When I first launched the Gold and Energy Advisor, I warned over and over again about the danger President Mahmoud Ahmadinejad and the Theocracy in Iran represented to the world.
This man and the theocracy he represents honestly believe we are in the “end times” and it’s their duty to prepare for the coming of the true Islamic Messiah. They are doing everything they can to bring about a United Radical Islamic State that will stretch from Pakistan through the Middle East and Northern Africa.
The International press is now picking up the events in Egypt but they are NOT putting the pieces together. They are not recognizing the radical Islamic gambit underway. They are not seeing the danger for the PLO, Saudi Arabia, Yemen nor the Iranian Theocracy's participation, funding and planning of these events.
We are seeing the development of an economic and political crisis that is literally beyond the scale of rise of Hitler's Germany in 1933.
I repeat my warning of two days ago. Iran's President and Supreme Leader intends to wipe Israel from the world map. Eliminate Western influence in the Middle East, North Africa and Pakistan. Iran intends to topple every moderate Arab government using radical dogma, money and smuggled arms to accomplish that goal.
The cat and mouse game we've been playing with Iran over its nuclear weapons program has been a failure. Having nuclear weapons will only serve to accelerate Iran's attempts to grab power.
All of this will have consequences far beyond $2,500, $5,000 gold or $150, $200 oil. As your editor, all I can do is warn you about the dangers and point out investment opportunities, especially when gold, silver, platinum, oil stocks and Numismatics look especially inexpensive relative to other investments. Gold and oil may not find their lows before the first week in February. They're both becoming way oversold.
I know that many “experts” are saying the bull market in gold is over. Many are saying oil will fall below $80 a barrel. They're wrong. These events along with the massive expansion of U.S. debt will fuel gold and especially the price of oil to new highs during this year. Any insurrection in Saudi Arabia, Yemen and collapse of the PLO will mean a spike the price of oil and gold.
The Iranian government, which has suffered under embargoes and trade sanctions for years, will do everything they can to slow the flow of oil out of the Middle East. They share the same goal of Osama bin laden, which is to bring the United States and Western economies to their knees.
From a gold buyer’s stand point, something remarkable has happened in the rare coin market. The premium for common date Choice Mint State Saint Gaudens $20 gold coins struck from 1907- 1933 MS65 NGC and PCGS has shrunk to just about $875 over the spot price of gold, and just $660 over the price of MS64's. The reason is simple. People have been buying the Buffalo and American1 ounce gold coins being struck by the U.S. mint and ignoring the vastly rarer Saints.
My new publisher of the Gold and Energy Advisor is running a special on these Choice Mint State Saint Gaudens $20 gold coins. Call Century Coin Group at 1-866-991-2646 and ask to speak with Todd Griffiths about his specially priced Choice Mint State Saint Gaudens $20 gold coin special.
Best Regards
James DiGeorgia
P.S. Here's a picture of an example of an NGC graded Choice Mint State $20 Saint Gaudens.
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