17 reasons to own gold and silver now
by Mark Leibovit:
- The gold market has entered a once-in-a-lifetime period of opportunity. Gold, which surged over $800 in 1980 and then tanked to the depths of $280 in 1999, is now embarking on what may be a 20-year advance which will likely carry it to as-yet-unforeseen levels – possibly as high as $11,000 an ounce and silver to $700 an ounce.
- Proportionally, the silver market price can be dramatically influenced. Any look into the history of silver prices shows that the metal can escalate quickly, often 10-20 percent in a period of just a few weeks. Since mid-August, silver prices are already up 32 percent.
- Since October 2001, silver has increased in price from approximately $4 to a recent high of $49 which is an approximate 1125 percent gain. Once we clear $49, the sky is the limit! It’s the poor man’s gold! Mark Leibovit predicts Americans will be standing on street corners to buy silver (and gold) before the ultimate top comes!/li>
- Silver has both intrinsic and industrial value. From film emulsions, to antibacterial products to circuitry, silver has literally thousands of industrial applications that help to limit the amount of physical silver in circulation. We are already holders of silver in our TV, computer and electronic equipment, batteries and car bearings. Silver is utilized in medical technology, solar energy and water purification. As technology advances, so do applications for silver.
- Gold demand has continued its rapid acceleration. According to the World Gold Council, demand in 2010-11 reached a 10-year high of 3,810 metric tons, a 10 percent increase over the previous year. The U.S. Geological Survey reports that total global gold production has been falling steadily over the past decade to just 2,350 metric tons in 2011. We question whether sovereign nations have been accurately reporting.
- Gold is still underpriced relative to inflation. Inflation-adjusted prices for gold range from $2,382 to $10,226, so at $1,922 an ounce (the Sept. 6, 2011 high), gold is not even close to reaching prior price levels.
- Gold bears have been consistently wrong. Mainstream financial media predictions of a gold bubble have not come to pass. One influential analyst at Kitco predicted gold would end 2011 at $800 an ounce … yet it ended the year at $1,405 despite an anticipated correction.
- We are drowning in debt. Government debt is skyrocketing. The national debt is now $16 trillion, more than $50,000 for every American man, woman and child. Bernanke, Obama and Draghi (European Central Bank president) are promoting dangerous policies that create only an illusion that the economy is stable. Any hope that the runaway spending of the Obama administration and other governments was a temporary “emergency,” a reaction to the 2008 credit wipeout, has been derailed. The federal budget deficit went from $160 billion in 2007, before Obama’s election, to $1.4 trillion in 2009, $1.56 trillion in 2010, and was projected to hit $1.65 trillion in 2011. The 2011 budget has the biggest one-year debt jump in history, or nearly $2 trillion, reaching $15.476 trillion – the first time since World War II that U.S. deficits hit over 100 percent of GDP.
- Do you think that is scary? That is nothing. According to data presented at the U.S. Debt Clock, U.S total debt is $55 trillion and total U.S. unfunded liabilities are $116 trillion.
- The federal government is in a mayhem printing spree, with the M2 money supply increasing 21.1 percent from June to September 2011. As the dollar devalues, investors are scrambling to buy hard assets. It took a lawsuit by Bloomberg to uncover the Fed’s “Secret Liquidity.” The Federal Reserve mounted an unprecedented campaign, secretly providing as much as $1.2 trillion to banks and private companies without any congressional or public approval.
- Large-scale gold buying is just beginning to make its way into mainstream “retail” financial institutions and pension programs. Five years ago, only gold “fanatics” and other “extremists” were buying gold. Today, central banks are buying again. Famed hedge-fund managers George Soros, John Paulson, Paul Tudor Jones and David Einhorn have piled into gold, gold exchange-traded funds and mining stocks.
- Gold is in the process of reemerging as an international reserve currency. As central banks around the world have engaged in massive money creation, smart money will allocate a greater percentage to gold as a “store of value.”
- Gold bullion holdings amongst the world’s central banks have risen to a 6-year high, according to data compiled by the International Monetary Fund. Emerging and developing nations have swollen their gold reserves 25 percent by weight since 2008. The debt-heavy West is a net seller.
- Investment overtook jewelry as the largest source of demand for the first time in three decades in 2009, according to GFMS Ltd., a London-based research company. Investor demand will climb 9.9 percent to 1,597 tons this year and another 11 percent in 2012, Morgan Stanley estimates.
- The U.S. Mint sold 85,000 ounces of American Eagle coins since May 1 as the Standard & Poor’s GSCI Index of 24 raw materials fell 9.9 percent. The last time sales reached that level, bullion rose 21 percent in the next year. Gold will keep gaining in 2012, a Bloomberg survey of 31 analysts, traders and investors reports.
- Supplies of physical precious metals (especially silver) are diminishing. The time is not far off when obtaining physical delivery of the metal will be very difficult if not impossible.
- We are nowhere near a market peak. The signs you see on street corners offering to buy gold represent smart commercial buyers – not a sign of a market peak. When you later see long lines of retail buyers (some waiting overnight), then a top may be near.
Mark Leibovit’s Gold Letter, # 1 Gold Timer for 10 year period & #2 Gold Timer for 2011
IF YOU HAVE NOT SIGNED UP FOR THE LEIBOVIT VR GOLD LETTER, HERE IS YOUR CHANCE. THE SEPT 17TH EDITION IS HOT OFF THE PRESS. HERE IS THE LINK: WWW.VRGOLDLETTER.COM. YOU GET A 50% DISCOUNT FOR THE FIRST MONTH.
VRTRADER.COM Trial Signup:
THE RENEWAL OF YOUR SUBSCRIPTION IS AUTOMATIC. YOUR CREDIT CARD WILL CONTINUE TO BE BILLED UNLESS YOU NOTIFY VRtrader.com SEVEN DAYS PRIOR TO SUBSCRIPTION EXPIRATION EITHER VIA EMAIL POSTING THE WORD ‘UNSUBSCRIBE’ IN THE SUBJECT BOX OR TELEPHONE US AT (928) 282-1275 OF CANCELLATION. NO REFUNDS ARE AVAILABLE ON SILVER, PLATINUM OR VR FORECASTER (ANNUAL FORECAST MODEL) SUBSCRIPTIONS.
Welcome and congratulations on choosing VRTrader.com as a source for your stock market commentary, information and analysis for the U.S. Stock Market. Needless to say we are very happy that you are joining us for AT LEAST the next 30 days days and look forward to providing you rewarding and inciteful information that will help you toward your goal of succeeding in the markets.
Here is the Special Trial Offer: Use this month to kick our tires. Pay 50% for the first 30 days (No refund) and sample our Silver or Platinum service and then decide what works best for you. If you aren’t 100% ready to move forward, simply email us to cancel one week before your 30 day 50% off trial subscription ends and it will be canceled and you will not be charged ANY FURTHER, no questions asked. Just send an email to mark.vrtrader@gmail.com” or call 928-282-1275 to cancel. You will receive an emailed confirmation of your cancellation at that time.
The 30 day trial is allowed one time only. By taking this 30 day 50% trial, you agree to be charged the full cost of the monthly Silver or Platinum service (choose one only) at the end of the 30 day trial subscription period, unless you cancel first. The regular Silver monthly rate is $49.40 and the Silver quarterly rate is $133.50. The regular Platinum monthly rate is $129.95 and the Platinum quarterly rate is $350.85. The special trial 50% off trial rates are listed below. Sign up today!
There are no refunds or pro-rata refunds offered at VRTrader.com for any subscription. You are being offered a 50% discount for trying our service for the first 30 days only!

