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Gold Headed Beyond $500 This
Year! |
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From the
$258 low in 2001, gold is up 65%.
In 2004 gold prices rose 5.3%.
Gold profits totaled 21.2% in 2003.
Gold generated 24% profits in 2002. |
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In 2004, gold
traded in a range from $375 to $454. Anyone who bought gold on dips under $400,
as we recommended, found gold quite rewarding.
In the month's ahead, we again feel that buying gold on unexpected dips is the
most likely way to take advantage of the market. Look for every buying
opportunity in this bull market for gold!
Now that we've shown that "Gold is the proven profit generator..." we may
surprise you by saying, that in 2005 more people are likely to acquire gold for
financial insurance than for profits. |
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Watch Inflation, Mounting Debt & the Falling Dollar
Life Fortunes May Be At Risk in 2005
It didn't take long for oil prices to kick back up to six week highs over $48,
raising new fears of a coming wave of inflation. From the Washington Post to
Time magazine the question, "Is Inflation Back?" is being asked. We already see
4% to 6% inflation last year driven by rising energy prices and skyrocketing raw
material costs.
Why Fear Inflation?
Nobody likes inflation. We don't like rising gas prices, high electricity costs
or heating bills. We don't like to see food prices go high either. Now this is
really "price inflation" when things we buy cost us more. But, according to
Webster's New Universal Unabridged Dictionary published in 1983
Inflation is, "An increase in the amount of currency in circulation, resulting
in a relatively sharp and sudden fall in its value and rise in prices: it may be
caused by an increase in the volume of paper money issued..."
That means that stuff cost us more today because the Federal reserve has been
running the printing presses day and night printing fiat paper money. In fact,
they have literally flooded the world with paper dollars since 9/11. To keep
U.S. consumers borrowing and spending, the Federal Reserve even lowered interest
rates to 40-year lows.
Market intervention is risky, yet the Federal Reserve continues to support the
stock market bubble and has now created a huge housing bubble. Real estate
prices and home building materials are overpriced and poised to go ownhill as
the Federal Reserve raises interest rates. As always, manipulations of the
economy will overcorrect.
As this Austin Report continues, we'll explain how you can avoid losing money in
the correction and actually generate substantial profits if you own the right
kind of assets in the year to come. |
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Profit from Rising Inflation
Take Advantage of the Timing & Buy More Gold
In recent months, the Federal Reserve has just started raising interest rates to
fight inflation. Unfortunately, winning the inflation battle long-term is
something almost impossible to do since 1973. That was when President Nixon
first removed the U.S. Dollar from the Gold Standard.
In 1973 inflation rates doubled to 6.3% and peaked at 11.0% in 1974 Inflation
slowed to 9.1% in 1975. But by 1979, 80, and 81 inflation rates rose to 11.3%,
13.5%, and 10.3% respectively.
The 1970's was period of historic importance to anyone thinking about buying
gold today. It was a time when inflation was beyond government control and a
period where gold prices rose dramatically.
In the period of 1970 to 1975, gold prices soared five-fold.
From 1977 to 1979, gold prices doubled again.
Gold peaked at $850/oz in January of 1981.
In the face of rising inflation from 1970 to 1980, the worldwide price of gold
increased 1,704%. |
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Year |
1970 |
1971 |
1972 |
1973 |
1974 |
1975 |
1976 |
1977 |
1978 |
1979 |
1980 |
Avg Annual
Price of Gold |
35.94 |
40.80 |
58.16 |
97.32 |
159.26 |
161.02 |
124.84 |
147.71 |
193.22 |
306.68 |
612.56 |
Sources: London Gold Prices and
Federal Reserve Bank of Minneapolis |
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Disclaimers:
The Gold Information Network has prepared information on this
site for the private use of our readers. The information herein is obtained from
a variety of sources that the Gold Information Network believes to be reliable,
but we cannot guarantee the accuracy or that information has not been condensed
or may be incomplete. All opinions expressed by the editors of the Gold
Information Network and those expressing opinions are subject to change without
notice. The information about future predictions, projections, or financial
advice could prove to be unprofitable. This firm is specifically in the business
of selling gold jewellery, coins & gold bars to the public and offers its opinions
from that viewpoint. We generally make available news and opinions that relate
positively to our markets and do not seek to present a balanced view of the
investment markets. We advise that you seek out information from a variety of
news sources before making any investment decisions. Its important to always
remember that past performance is no guarantee of future value. These investment
products may not be suitable for every individual as the value of gold, silver,
and rare coins go down as well as up in value |
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