Real Wealth #290 03/17/2011
The collapse of the U.S. Dollar is no longer a question in my mind. It's now simply a matter how soon it collapses.
Dear Subscribers and Friends,
I realize there’s a great deal of uncertainty sweeping through the financial markets. After all, it does look like everything that can go wrong is going wrong these days.
Take a minute and consider what we’re witnessing...
* A Tsunami, Earthquake in Japan that has killed an estimated 25,000 people and triggered what may well become the worst nuclear crisis since Chernobyl.
* Still growing turmoil in the Middle East that threatens to destabilize the world supply of oil.
* A persistent debt crisis in Europe, that literally threatens the very existence of the Euro.
* The continuing economic troubles here in the United States that has now put 44 million people on food stamps, housing prices still declining and the real rate of unemployment climbing.
I’ve been warning for over six years that we could very well see a devastating monetary crisis take place that would literally destroy the fiat financial system. In short a complete collapse of the U.S. Dollar, much like the collapse of the currencies of Yugoslavia, Zimbabwe, Russia and others that took place throughout the 20th Century.
One of my newsletter and financial advisory competitors, Porter Stansberry, is currently running TV ads and an Internet promotional campaign warning of a monetary collapse that will change every aspect of life here in the United States. He's pledging to show new and existing subscribers how to generate profits of 200% even 300% on the crisis ahead.
I think the world of Porter and many of his predictions mirror mine. Like me, Porter recommends gold, silver and other investments as protection against a collapse of the U.S. Dollar.
While we agree on precious metals as a hedge, I disagree with his prediction of potential profits that can be reaped. I think he’s being extremely conservative.
I believe that those holding Gold, Silver, Platinum and yes, certified high quality rare coins, will see the value of their holdings jump in value by 500%, 1,000% even as much as 5,000% when the bottom falls out of the U.S. Dollar.
If the U.S. Dollar collapses, the price of silver should soar to $100, $200 even $300 an ounce. Gold, in my opinion, should catapult not just to $2,500, $5,000 as I have warned, but could very well leap to $10,000 even $25,000 an ounce.
The truth is most people including financial and economic experts and gurus here in the United States are still refusing to believe that a monetary meltdown is possible in the home of the free and brave.
Like sheep being herded to slaughter, the talking heads on the financial TV networks are focused on the up and down moves in the financial markets. They’re busy interviewing Wall Street analysts and money managers that really believe the paradigm that have existed in the financial markets since the end of World War II will continue to exist. They don’t expect or envision even the remotest chance that the U.S. Dollar will collapse in value or cease to be the world’s reserve currency. As a result, most of the “experts” are leading good people like you down the path to financial destruction.
If all your life savings are invested in IRAs, Real Estate, Bonds, T-bills, mutual funds or even cash, you’re at risk of being completely wiped out.
I have no doubt that those holding physical gold, silver, and platinum are going to survive and thrive when the U.S. Dollar crisis hits. While most people will be glued watching the TV networks broadcasting 24 hours a day how the world’s financial and monetary crisis is setting off wars around the globe, food, labor and bank closure riots across America, Europe and even in Asia holders of precious metals and investment quality rare coins will be among the very few that will be reassured that they have at least some financial security.
Remember this when you’re watching the chaos and destruction on your TV's, computers, laptops and Ipads, that I not only predicted what you’ll be watching, but that not a damn financial or economic “expert” interviewed will apologize for their complicity in misleading the American public. To them the monetary crisis will be a complete surprise.
Another financial advisory competitor Martin Weiss has long predicted a U.S. Dollar panic and has preached for years that “getting out of debt”is the most important thing an person can do. He’s also has recommend investing in U.S. Treasuries.
I think the world of Martin, but I believe he’s dangerously wrong about debt and wrong about investing in U.S. Treasury notes.
The fact is, I would rather owe $1 million to banks and credit card companies right now and even be in default than sell a single ounce of gold, silver, platinum or rare coin. Why?
When the U.S. Dollar collapses those who own precious metals and rare coins will see the dollar value of those assets explode in value while their debt load will only increase incrementally.
Most people have fixed rate mortgages and those who are on adjustable rate mortgages have a reasonable yearly or lifetime cap on the rate of interest they can be charged.
So those who owe $500,000 in debts, and own $500,000 in precious metals will see their debt remain at roughly the same levels with interest while they see the precious metals and rare coins increase in value 5, 10 even 50 fold.
In short, those holding hard assets will be able to retire their debts their mortgages off U.S. Dollars that will have the buying power of 10 cents even 1 cent on the dollar. Telling you this may well get me murdered by powers on Wall Street or in Washington. I’m willing to take the risk to guide you through the financial apocalypse that I believe lies shortly ahead.
I expect to see the value of your precious metals and rare coin holdings to climb so fast that you’ll be in position to pay off any and all debts at literally what will feel like pennies on the dollar.
I have no doubt that $500,000 in precious metals and or rare coins will jump in value to $2.5 million, and to even as much as $12.5 million.
With regard to Treasury notes, Martin has always argued that the Federal Government would never default. Maybe so, but if you own a $10,000 Treasury Note and the dollar collapses in value the U.S. Government may not default but instead just pay you the $10,000 back with interest, that has the buying power of $5,000, $2500 even as little as $100. In essence U.S. securities are not designed to protect you from a dollar collapse.
While the dollar collapses in value, your bank and creditors will NOT be able to increase your debt to match the declining of value of the U.S Dollar.
If you think the Savings and Loan crisis was serious and the banking crisis of 2008/09 was a nightmare. The banking meltdown that would occur should the U.S. Dollar collapse would those crises look tame. The banking system here in the United States and around the world would be destroyed.
Debtors could wheel up with barrels full of worthless dollars and pay their debts off. The real estate, government and corporate securities they own would become illiquid, impossible to sell.
I have just one fear. A gold confiscation, just like what was imposed by the U.S. Government in 1933 on the American public.
Back then, the only gold exempt from confiscation was gold Jewelry and rare gold numismatic coins. I believe if a gold and precious metals confiscation is declared in 2011 or 2012, that history will be repeated. For that reason, I suggest buying certified NGC and PCGS 24k U.S. Buffalos, American Eagles in MS70 condition and paying the $150+ premium over gold spot.
Even better, I recommend buying MS65 PRE-1933 Gold Saints for $2,200 a coin. These and even rare gold and silver coins should protect you from confiscation and at the same time give you the explosive upside potential that I believe is inevitable when the U.S. Dollar collapses. I like these coins also because the premium for the higher quality over the intrinsic gold value of these coins is the lowest it has been in the past twenty years.
The gold specialists at Century Coin Group can be reached Toll Free at 1-866-991-2646 and are standing buy with a small number of 1908-1928 graded by NGC and PCGS for just $2,200 per coin.
Keep in mind that I will examine and approve every MS65 Saint and rare coin Century Coin sells, so you’ll have one of the worlds top numismatists screening the gold coins you add to your portfolio.
What do I think about the oil and energy stocks and how will they react to a U.S. Dollar collapse?
I’ve been focusing on recommending on domestic and Canadian companies oil companies with the largest possible oil reserves. I’ve been will continue to focus on these kinds of energy companies because I believe that if we see the U.S. Dollar collapse in value we will also a great many oil, gas and coal companies outside the United States and Canada nationalized.
I have no doubt that oil will be trading in the $150 to $200 range in the next 3 to 5 years even if there’s not a monetary crisis. However if there is a U.S. Dollar collapse the price of oil would soar to ridiculously high levels, perhaps $300, $500 even $1000 a barrel. In truth the prices of oil, gold, commodities and food will only be limited by the extent of the degree of the collapse of the U.S. Dollar suffers.
Meanwhile the share price of the domestic oil companies should easily rise at close to or the same velocity and rate that the U.S. Dollar value falls.
Please don’t buy into the “conventional wisdom” that a U.S. Dollar collapse is impossible. I have no doubt, buying into that philosophy will cripple you financially and could leave you financially destitute.
Buy gold, silver, platinum and rare numismatic coins now and protect yourself from the risk of a U.S. Dollar collapse.
Call Century Coin Group immediately Toll Free at 1-866-991-2646 and ask one of their gold representatives about the NGC and PCGS MS65 PRE 1933 Saint Gaudens $20 Gold coins and find out what other rare gold and silver coins I am recommending.
Time is short. The danger is increasing every day. Don’t get caught and fall victim to the financial apocalypse. Use every available dollar you have to protect yourself while those dollars still have buying power. Once the buying power is gone, you’ll be stuck with worthless pieces of paper.
James Di Georgia
Gold and Energy Advisor
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