RANTING ANDY – As I watch gold and silver roar higher during one of the most manipulated market periods of all….COMEX expiration week….it occurs to me that, per my July 8th RANT “THE END GAME IS NOW (July 8th, 2011); ARE YOU PREPARED” is becoming more apropos each minute.
In recent years, I believe I have sufficiently refuted all theories about the importance of the “dollar index”, which is simply a basket of garbage ( such as the Euro, Pound, and Yen), being valued against each other as they collectively fall off a cliff. In other words, it should be getting clearer each day, as gold hits new highs in essentially every paper currency on earth, that gold is not rising SECULARLY (i.e. in the United States), but GLOBALLY (i.e. EVERYWHERE).
This is not the end of the dollar, but the entire dollar-anchored fiat currency system that commenced in 1971 (when Nixon abandoned the gold standard), and investors all over the world are buying out of FEAR of the hyperinflation that is sure to wreak havoc on prices in most Western nations, as well as many in the East (such as CHINA) because they continue to link their own fiat currencies to the dollar.
Of course, China and other Asian net exporters will be able to escape the hyperinflationary cycle due to their strong industrial bases and, of course, the fact that they have been buying up GOLD, SILVER, and OTHER VALUABLE COMMODITIES with their surplus dollars for years. In the West, however, no such luck, as most of the West (particularly the U.S., U.K., and most of Europe) is FLAT BROKE and GUTTED of essentially all material productive capacity.
Anyhow, probably the greatest skill I have learned in this business in my 20 years in the financial markets is to realize who the SMART GUYS are, as well as the GOOD guys. And if you can find those who are both, the odds are HEAVILY STACKED in your favor to succeed, despite all the obstacles (such as market rigging) that will be thrown in your path.
In the gold world, my biggest influences, starting back in 2002, were Richard Russell, Jim Sinclair, and Bill Murphy (BTW, the GATA GOLD RUCH conference next week in London, www.gatagoldrush.com, is nearly sold out, and I expect it to be THE MOST IMPORTANT GOLD CONFERENCE IN THE HISTORY OF MANKIND!).
But as time has passed over the past decade, others have also emerged as SMART, GOOD guys, and I assure you I have made it my business to become aware of each and every one of them.
One of them is John Embry of Sprott Securities, consistently one of the biggest advocates of PHYSICAL gold and silver ownership, and one of the top junior mining Portfolio Managers in the world. He, too, has been a mentor of mine, and when he speaks about gold, you should all listen.
Below is his latest regarding the changes we are seeing in the gold and silver markets, changes which I believe signify the END of the 40-year mad expirement in global fiat currency. The massive gold and silver shortages he refers to are right around the corner, of which we already saw glimpses in April before the SUNDAY NIGHT PAPER SILVER MASSACRE.
I believe that before year-end, it will be nearly impossible to source PHYSICAL gold and silver of any real size, ANYWHERE in the world (you can forget any more stock offerings of PHYS, PSLV, CEF, GTU, or SVRZF). Moreover, by next year, I believe things will have deteriorated so badly in the Western world, that gold and silver could be twice their current prices, and still just be in the “jacks for starters” class, to quote Bill Murphy.
By the end of next year, Westerners are likely to be scrambling to exchange their dying scrip for any ITEMS OF REAL VALUE they can get their hands on, and if you want an idea of what it can look like, think the gas lines of the 1970s.
Or, you can just see what it looks like TODAY at coin shops in CHINA (actually, this was a YEAR AGO, so think what it’s like now!):
And remember, this is NO JOKE.
Gold is NOT AN INVESTMENT, it is MONEY! Gold, silver, food, and ITEMS OF REAL VALUE are the only way to preserve your wealth against galloping inflation, which is precisely what we are about to see.
And one more note, to drive my point home. At the end of the two minute video above, the reporter mentions George Soros, who represents everything I strive to avoid in the world. I assure you, he knows NOTHING about gold worth mentioning, or, if he does, he is using such knowledge in a manner that will negatively impact you at his expense. So please do not EVER listen to anything George Soros has to say.
PROTECT YOURSELF NOW, and EMPOWER YOURSELF by listening to the few SMART, GOOD guys out there!