Dear Mr. Fulford: I am subscribed to your website. Thank you for
your great work. I continue to follow your weekly report very
carefully. I was hoping I could get your counsel on a personal
economic matter. I follow the NIA (National Inflation Association)
website. They are an independent alternative group exposing the truth
about the US economic situation as well as providing financial advice.
Over the past few years, they have given stock tips for gold, silver,
copper and other metal and mineral mining companies. And over the
past few years, ALL of their stock tips have done very well, sometimes
gaining many hundreds per cent. So in view of the difficult economic
situation we all face here in the US, I was considering trying to grow
a little money by following one of their stock leads and buying shares
in a silver and copper mining company they have just recommended. But
I am very uncertain as to whether at this juncture in history this
would be a wise move.
The NIA mining company stock recommendations
have all done extraordinarily well over the past few years. But I
have reflected that over the past few years the world political and
economic situation has been relatively stable. That is, there have
been no major upheavals or cataclysms. But from your reports, it
seems on the one hand that the Old Order oligarchs are still fighting
to regain their ground, and that this presents a real possibility of
some cataclysmic events. Possibly even world war. And again from
your reports it seems on the other hand that many new global economic
and political alliances and arrangements are emerging and that these
may very well come into conflict with each other. And that at least
there may be major upheavals and radical changes in the global
And for these reasons, I have reflected that we are now in
a much more unstable and unpredictable time than we have been in over
the past few years. And that consequently, while the mining
companies the NIA has recommended over past few years were able to
grow very well under a relatively stable global environment, now
with a much more unstable and unpredictable global situation, the
enterprises of those same mining companies may very well be disrupted
or stopped by any number of variables. So I am wondering if it is a
much bigger gamble to invest in these companies right now than it has
been over the past few years. I was wondering if you have any
feedback or counsel about this.
My assets are very small. But in one way or another–either by
purchasing metals or by purchasing the NIA recommended stock shares–I
want to get my money out of the big Old Order banks.
* * * * *
First of all, let me say I am not a financial adviser and I am especially uninformed about short-term market trends.
Having said that, what I am hearing from my sources is that most of the world’s gold has been kept off the market and may soon re-enter the market. That would be bad for the gold price. However, gold could rise to $5000 an ounce before that happens. I simply do not know because it depends entirely on how many dollars they will take out of circulation when they move to the new asset based system.
In times of uncertainty people will still need essentials like food, shelter and clothing so these might be areas to look into. Alternative energy is also about to take off. My own view is that there will be turbulence over the winter as the old system collapses and a temporary, one-off drop in Mediterranean and US living standards as these countries go back to their own currencies (in the US case that would be treasury dollars).
Following that, there will be a boom. For example, if I had money to invest, I would wait for the Greeks to announce a return to a devalued Drachma and then invest in Greek tourism.
Anyway, just remember food, shelter, clothing, friendship and love are more important than abstract money. Good luck.
- Guest Post: Start Thinking in Terms of Gold Price (zerohedge.com)