SILVER AND GOLD TO CONTINUE THEIR STRONG UPWARD MOVE

Silver continues to move upward. Steve Bilsky, our silver analyst, who has been right on the mark all year long, is of the opinion that we will see $35-$40 per ounce in the next few months and close to $50-$60 per ounce by this time next year.

Indeed even at $60 per ounce, silver would be severely under-priced, since it would still not reach the classic ratio to gold of 15:1.

As to gold, it is almost at the point that I predicted in late 2009: about $1450 by end of year.

Gold is up about 28% this year and was up about 32% this year. All of that is without QE2.

The Fed says $600B which in the real world is likely to mean $1T.

Food prices have already moved up (eggs, milk, meat and sugar are all up this year over 7%).

We will likely see $1700-$1800 this time next year.

If Israel runs out of patience with Obama (last week Netanyahu admonished the U.S. that without a threat of military action behind its sanctions, the sanctions will not work-moreover, Israel feels more emboldened with a Republican controlled House in the wake of the mid-term elections earlier this month-just look at their announcement of more housing in East Jerusalem, ignoring Obama's admonishments), and hits Iran's nuclear facilities, we could well see $3,000.

Sean Mcguire's (he runs the Texas State Teachers pension fund and just shifted $400M into gold) best seller, Hard Money, explains that gold is more under-owned (less than .6% of the world's total assets is invested in gold) than at any time in recent history. He has opined that he would not be surprised if gold reached $10,000 in the next 5 years, as more and more pension funds shift a small % of their assets into gold. He explains that most pension funds have not yet done that and if they shift just 1% into gold, $10,000 is the number that will be attained, just using the math on that 1% shift into gold.

What does this say about shifting a portion of your IRA into gold or silver? Yes, rolling over a percentage of your IRA into precious metals is the ultimate insurance policy for your assets and the ultimate formula to growing your nest egg. Mutual funds don’t come close.

If you have any additional capital you should give this serious consideration. If you have an IRA or a 401k then you will really regret not rolling over some of it into these metals.

To contact the author, email Steve Kramer at skramer@lelandgold.biz.

DEVALUATION OF THE DOLLAR IS DESTROYING YOUR IRA

It is no secret that the U.S. government is intent on pushing down the value of the dollar against other currencies. One goal is to boost exports by making our products less expensive compared to competitive products manufactured in other countries. Another goal is to keep the economy from retreating into another severe recession by boosting the liquidity in the system. However, the direct result is to devalue the dollar thereby making your IRA worth less.
Another result is that the other major countries are not going to just stand idly by and watch the U.S. capture market share from them. So what are they doing? The same thing: they are pushing down the value of their currency: The European Union is doing that. China of course has been doing it for years.
Such a currency war is similar to what took place in the mid-1930’s and which caused the 2nd dip of the Great Depression. As we know, savings (we didn’t have IRA’s back then) were wiped out.
You can defend yourself against this by rolling over a portion of your IRA into gold. The price of gold traditionally moves up as the value of the dollar declines.
It is folly to keep all of your IRA eggs in a mutual fund. Just look at the numbers:

$100,000 in 1999 in the S&P 500 would be worth about $92,000 by 2009
$100,000 in 1999 in gold would be worth over $335,000 by 2009

Pretty convincing, don’t you think?

A roll-over into gold is penalty free. Maintenance is much less expensive than a mutual fund.

For questions about this blog or to reach the author, Steve Kramer, Senior Metals Specialist at Leland National Gold Exchange, Inc. email Mr. Kramer at skramer@lelandgold.biz or call him at 888-400-1849

GOLD AND SILVER IN YOUR IRA MAKES EVEN MORE SENSE NOW

Gold is now serving multiple functions for astute investors who realize the folly of having all of their retirement capital in mutual funds:

1. Protects against deflation;
2. Protects against inflation;
3. Safe haven against international financial crises;
4. The only safe currency that cannot be diluted.

No one has yet to invent a printing press that can print physical gold or silver. That’s one major reason why smart investors are diversifying their IRA’s into gold and silver.

In the 6,000 years that gold has been used by humanity, it has been the one tried and true reserve.

A roll-over could not be easier. It’s tax free and penalty free.



To contact the author, Steve Kramer, Leland National Gold Exchange’s Senior Metals Specialist, call 888-400-1849 or email Steve at skramer@lelandgold.biz.

MORE EVIDENCE THAT ISRAEL WILL ATTACK IRAN

As I explained in my blog a few weeks ago, the evidence is mounting that Israel will attempt a military strike on Iran’s nuclear facilities.

Now new evidence lends further support to that conclusion.

As I have mentioned, should a military strike take place, it is likely that gold will move even higher as investors look to the safest haven (gold) to put their cash. That new evidence includes:

1) This month’s issue of the Atlantic Monthly. Cover story: “Israel Is Getting Ready to Bomb Iran”- The article’s author interviewed dozens of former and current officials in the Israeli and U.S. governments and has reached that conclusion. Israel simply cannot take the risk of a second Holocaust.

2) Iranian President Ahmadinejad last week during Quds Day, an Arab event designed to focus on the goal of eliminating Israel’s control over Jerusalem, again vowed to wipe Israel off the face of the map, threatening a “final” battle to “take back” Jerusalem.

3) Israel has lined up landing rights at airports in Bulgaria and Romania for re-fueling and practice flights should they need to use that route to reach Iran.

Gold is already in a decade long bull market and with the astronomical debt that the White House has generated (over 4 trillion in just 18 months) plus the foregoing evidence of a military strike on Iran, it is likely that gold will continue to be the safe haven of choice for prudent investors.

You can reach the author Steve Kramer, at 888-400-1849 or at skramer@lelandgold.biz.

IF YOU ANSWER YES TO ANY OF THESE QUESTIONS YOU SHOULD HAVE A PORTION OF YOUR ASSETS IN GOLD

1. Has your IRA lost money in the past several years and are you worried about your retirement years?
2. Have you recently lost your job or fear losing your job?
3. Have you suffered setbacks in your stock portfolio?
4. Has your mutual fund been losing money?
5. Is your portfolio concentrated solely or almost solely in stocks and mutual funds without any diversification into precious metals?
6. Are you worried that the federal government has created unsustainable debt?
7. Do you doubt that the recession (or so-called recovery) will improve any time soon?
8. Do you realize that gold is the only true safe haven in times of economic turmoil or stress?

If you have answered “yes” to any of these, then why on earth have you not put at least some portion of your assets into gold?

Ever wonder why most financial advisers and stock brokers never mention physical gold or silver?

Financial advisers are usually loathe to let a client take money out of their control. In my experience, 99% of all financial advisers will do and say just about anything that they can to get a client to stay under their wing. This is something that I talk about often on our national radio show on Sunday mornings.

Two reasons why financial advisers will fight you on this:

1) It’s human nature: if they say yes, then they are implying that they have been wrong all of these years with you as a client because they never brought this to your attention. They are deathly afraid that you’ll go away thinking “if this guy is so smart why didn’t he put me into a gold roll over 10 years ago? 5 years ago?.

2) If they say “no” then they try to correct the situation by getting you into something themselves that will give them an opportunity for a kick-back (that you never know about) by sending you to one of their friends in the gold business. Even if they don’t get a kickback (ranging from a weekend at Vegas to a ticket to a Giants game, etc.), they at least keep your $ under their control.

In all my years, I would say that I can count on one hand the # of financial advisers who have let their clients go away from them for a gold IRA. With us, you deal with us directly, nothing under the table.

The White House’s Unwillingness to Cut Taxes Increases Joblessness and Drives Gold

The White House’s Unwillingness to Cut Taxes Increases Joblessness and Drives Gold
An Attack on Iran is Becoming More Likely and Will Drive Gold to New Levels
People are becoming more concerned about a double-dip recession. The White House is to blame. The President does not want to cut taxes, the quickest measure to drive the economy and generate jobs. Instead he wants to raise taxes. To raise taxes in this economy is fool-hardy and a recipe for continued joblessness. Employers faced with tax increases will refuse to hire new workers. It’s that simple.
As people become more worried about a double-dip recession, they will continue to flee into the classic safe haven: gold.
As reported last week in our blog, Israel and the U.S. are both making plans for a military strike on Iran’s nuclear facilities. It is a matter of when, not if. Israel has a consistent track record of military strikes on nuclear facilities in the Middle East: Iraq 1981 and Syria 2007. Those threats pale in comparison to the threat posed by the thugs in Iran.
We see that gold is up over $100 since the start of 2010 and is likely to continue that upward march.
We continue our prediction that gold should surpass $1,400 by year end and $1800 by end of 2011.