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Why the Record High for Gold is the Best Time to Buy Editor’s Note: Although it isn’t a penny stock play, today’s issue is based around a very strong trend that cannot be denied. Take it from our resource expert, Kevin Kerr… Enjoy… Did You Notice: Buy Gold Again
China’s economy is in overdrive, growing 11.4% in 2007. Check out the numbers… The McKinsey Quarterly reports: By 2010, 40 million households will earn more than 48,000 renminbi ($6,000) per year, equivalent to $24,000 in terms of purchasing power parity and enough to qualify a household as middle class by U.S. standards. Meanwhile, the number of Chinese with at least $1 million in assets hit about 350,000 recently, and you can bet that number is increasing daily. (The number of millionaires in the U.S. is reported to be 9.3 million.) China has a lot of catching up to do. As it catches up, gold will tag along. That’s because the Chinese cherish gold as the premier symbol of wealth and store of value. ********************************** What Our Grandparents Knew About Investing During the tech boom...during the mad rush for China shares...during the hedge fund craze...even during the latest run on real estate...a lot of inexperienced investors got all the wrong ideas about how to build wealth. For those market amateurs, it was all about the fast buck...about how well the Fed could manipulate markets with interest rates...and about a kind of entitlement idea related to wealth. But you and I know that’s just not how it works. Check this report out today and you’ll find the one best stock to invest the way our grandparents did… ********************************** Gold demand in China relative to GDP is about five times higher than in the U.S. And this robust demand is growing. Gold consumption in Mainland China rose 25%, to 78.9 tons, in the three months ending last September. But the real opportunity for gold in China comes with China’s central bank. For several years, Yu Yongding, a committee member of the People’s Bank of China, has advised that China use its foreign currency reserves — the largest in the world — to buy gold. He’s not the only one. Other Chinese economists are urging their government to QUADRUPLE the nation’s gold reserves. Isn’t it interesting that these recommendations arrive at the very same moment that the International Monetary Fund is seeking to dispose of its gold to satisfy budget deficits? China is accumulating tangible wealth while the West is squandering it. Here are two points of interest...
So the U.S. has 70% of its reserves in gold. Let’s say China puts just a THIRD of its foreign reserves into gold. That would be $500 billion worth — or about five times the amount of gold the IMF hopes to sell! ********************************** 47 New Millionaires Every Day and a New Billionaire Every Month The $7 billion “Golden Quadrilateral” is minting new fortunes in this aggressively growing economy. But all you need is this one $17 stock. Read more here. ********************************** And It’s Not Just China’s Demand for Gold... India’s Economy Is Growing, Too! India is the world’s largest gold market. Consumer demand in the third quarter amounted to 185.1 tonnes — or more than twice the Chinese demand over the same time frame. And during the first nine months of 2007, Indian demand totaled a staggering 500 tonnes, according to the Khaleej Times. Driving that gold buying is a booming Indian economy. India is the world’s fastest growing major economy after China, and its GDP grew at a rate of 9.4% in the fiscal year to March 2007, which, according to The Economic Times, was “its strongest pace in 18 years.” Household income in India is growing at a double-digit pace. A lot of disposable income means India’s middle class — which is larger than the entire population of the United States — is buying everything from cutlery to cars to air conditioners...to gold. So the yellow metal may be headed to $1,000 very soon. It’s sitting about $15 shy of there, as I write this. But don’t expect it to stop there. Yours for resource profits, P.S.: I’ve said a number of times, gold will hit $2,000 an ounce. In fact, it will probably go even higher. I am so sure of this that along with Byron King, I put together a report detailing entirely new way to play this trend…including one way to own gold that comes with zero-downside risk. To get this you have to hurry. The doors on it slam shut on March 11, 2008. One week from tomorrow. Check it out now… |
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With 15 years of experience, Kevin Kerr is a true veteran of the commodities markets. At age 20, Kevin became one of the youngest members in the history of the New York Finex Exchange. From the Finex Exchange, Kevin became a full seat member of the New York Board of Trade. A licensed commodities trader since 1989, he's worked the trading pits in Chicago and New York with legends like Paul Tudor Jones, and he's even traded commodity derivatives in London. Over his career he's dealt with everything from cotton to currencies to oil and natural gas. Kevin is the editor of Resource Trader Alert, and the co-editor of Outstanding Investments. |
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