Tags: Greenspan's | Legacy: | Soaring | Gold | Recession

Greenspan's Legacy: Soaring Gold, Recession

Thursday, 15 December 2005 12:00 AM

It is also no coincidence that gold has surged to a recent record high for 2005 when it traded at $541 per ounce.

Our FIR report has been incredibly accurate. We not only predicted the rise in interest rates as Greenspan's parting "gift" to the U.S. economy, but the spike in gold rises.

Because of uncanny financial advice, our investment picks have also soared.

Our selections for 2005 are already up 16%.

FIR has also been warning of a looming recession - compounded by a housing bust and economic crisis. We cite reputable sources on this, including Sir John Templeton, Paul Volcker and others.

Check out our special report with Sir John Templeton and how you can protect yourself and your investments - Go Here Now.

The last time gold traded above that price was at the end of Ronald Reagan's inaugural year of 1980 stretching back some 15 years.

Most recently in the November issue of FIR, which mailed November 15, we nailed the latest leg up in this supercharged rally for the precious metal when its price stood at less than $470 per ounce.

FIR is not simply a newsletter for gold bugs and doom-and-gloomers. We see gold as an important part of every savvy investor's portfolio. Even once pure equity investor's like Warren Buffett have come to recognize this.

In December 2003 we told our readers that readers should 'invest in gold as the ultimate insurance.'  At the time gold stood at around $400 an ounce. Based upon that solid forecast we recommended several gold mining companies to our readers including Goldcorp and Agnico Eagle whose shares have risen 31% and 46% since that time.

We predict that the gold rally has far from run its course based upon the prevailing economic fundamentals, which leave the investing environment ripe for gold and precious metal investment vehicles.

In the recent issue of FIR we treated our readers to THREE investment alternatives including EIGHT mutual funds and companies set to benefit from gold's ascent.

#1 The decimation of the dollar at the hands of other major world currencies has been an ongoing force fueling gold's meteoric rise. Since most commodities are priced in dollars, a falling dollar sends investors rushing into physical commodities from wheat and corn, to gold.

#2 A growing global population and the surge in the economic strength of Brazil, India, and China create the stage for ever-strengthening demand for gold as a store of value. The 1.3 billion Chinese population is gradually turning into a nation of more affluent shoppers whose appetite for more luxurious and material goods is growing along with their income.

Indian jewelry sales increased 80% over 2004 levels.

#3 This boost to demand comes at a time when supply is tight with 2004 gold production declining by more than 13%. Mining companies are in a raging bidding war to take over smaller mines with proven gold resources in the ground.

Today we are seeing the consequences with declining physical output at a time when demand is taking off.

Investors' reaction is to put greater stock into the price of gold - a traditional safe haven in eras of rising and falling prices.

#5 Stagnant equity markets and the fact that investors have poured money into real estate mean that any economic downturn in 2006 and beyond, which FIR believes is a strong possibility, means that there are few viable alternatives for investors to stash their cash.

What about real estate, bonds, and foreign investments?

Get both our Gold Report and our special report with John Templeton - just Go Here Now.

Clearly, you need to know what Sir John Templeton thinks.

Go here now for your FREEE copy.

Christopher Ruddy
Publisher
Financial Intelligence Report

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It is also no coincidence that gold has surged to a recent record high for 2005 when it traded at $541 per ounce. Our FIR report has been incredibly accurate. We not only predicted the rise in interest rates as Greenspan's parting "gift" to the U.S....
Greenspan's,Legacy:,Soaring,Gold,,Recession
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2005-00-15
Thursday, 15 December 2005 12:00 AM
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