Weekend: The Next Leg Up for Gold

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Weekend: The Next Leg Up for Gold By Steve Christ | Sunday, July 17th, 2011 Welcome to the Wealth Daily Weekend Edition — our insights from the week in investing and links to our most-read Wealth Daily and sister publication articles. Framed by the Grand Tetons to the west, Jackson Hole, Wyoming, is one of the prettiest places on earth. Looking out over its scenic vistas, it's no wonder to me this place manages to attract the rich and famous by the private jetload. Add to that list the powerful. Along with the more well-known names, the world's central bankers like to come here, too. It's here in the high valley “the smartest guys in the room” come every August to ponder how they might solve the world's problems with the magic of their monetary policy. Of course, it's really just hubris writ large. But since nobody seems to notice, the show, as it were, goes on. Advertisement Are You Prepared for the Coming Economic Tsunami? Most Americans are completely oblivious. But in the very near future, our entire way of life could very rapidly start crashing down... This free video reveals shocking footage that proves the game is up — and what you can do to protect your family while there is still time!  The Jackson Hole Economic Symposium has been hosted by the Kansas City Fed since 1978. And just like last year's show, the highlight of all this brain power will undoubtedly come down to the keynote address given by Fed Chairman Ben Bernanke. In that regard, investors with a watchful eye on Wyoming can expect something more like a summer rerun... During last year's speech to the bankers gathered in the valley, Bernanke virtually assured he would act again to prop up the U.S. economy to prevent a double-dip recession. Not long after, QE2 set sail with a $600-billion price tag. The Day the Dollar Died Bernanke delivered this speech on August 27, 2010. I like to call it "the day the dollar died." Since then, the greenback has lost nearly 10 percent of its value against the world’s competing currencies. Not coincidently, this also marks the time at which gold and silver broke out in a big way as precious metals investors increased their bets against Bernanke and his printing presses. Take a look:   As for the economy, the rescue plan that trickled out of Jackson Hole last August has failed. In the aftermath of QE2, unemployment is still over 9%; GDP is on par with that of twelve months ago. The economic data has been so disappointing lately, expectations are now rising for the Fed to signal yet another round of quantitative easing when they meet at Jackson Hole this year. Because when push comes to shove, it's the only play in the Bernanke playbook. There's no play that calls for letting things take their course. That kind of thing doesn't exist in Ben's world... Which is why you can expect this year's speech at Jackson Hole to be a virtual repeat of the one given last summer. In fact in his Congressional testimony on Wednesday, the Fed Chief actually began his Jackson Hole warm-up, stating: The possibility remains that the recent economic weakness may prove more persistent than expected and that deflationary risks might reemerge, implying a need for additional policy support. The Federal Reserve remains prepared to respond should economic developments indicate that an adjustment of monetary policy would be appropriate. Translation: QE3 isn't far behind. Advertisement The Biggest Gold Story in 50 Years? It's not often that we get opportunities like this one. In fact, this is the only time I can think of. But recently, the world's largest uranium company just handed over billions of dollars' worth of gold to a tiny mining outfit... for just $250k. The size of the deposit is already being called "the most exciting gold story in the past 50 years"! But before the find is reflected in the company's share price — launching it several hundred percent — find out how you can secure your share. Given the current "soft patch" in the economy, the bar for Bernanke to clear on this one isn't that high. That's why the market jumped more than 100 points on Wednesday, once the latest wink and nod from the Fed was received.  As for all the backtracking on QE3 that took place the next day, don't believe it; guys like Richard Fisher can squawk all they want to, but they cannot stop QE3 — not when Ben Bernanke believes printing money is the answer for everything. And don't expect the U.S. dollar to fare well in all of this. As usual, the greenback is on its own. That's good news for holders of gold, as more and more investors move into hard currencies. Metals guru Luke Burgess explains why gold will likely jump to new highs, just as it did earlier this week when the latest rumblings of QE3 came across the wire. This leaves the popular shiny metal firmly entrenched in a solid, QE-inspired uptrend: In this case, the trend is your friend. With Jackson Hole looming in the distance, gold could easily make a 20% move higher from here, pushing it to over $2,000/oz. For gold investors, that would be almost as pretty as the sight of those mountains... As for some other places to start building a lifetime of wealth, check out the week's top articles from Wealth Daily and Energy and Capital, below. Have a great weekend. Your bargain-hunting analyst,   Steve Christ Editor, Wealth Daily Regenerative Medicine Investing: An Unbelievable Look into the Future Editor Steve Christ explains why today's breakthroughs will usher in a new era in medicine. Peak Oil Prophet: Another Spot-on Call Publisher Brian Hicks explains why Peak Oil is no longer some "tinfoil hat" theory — and why we've reached the critical point at which it's going to start changing the very way we live our lives. As Brian writes, now is the time to save your self... and your money. Invest In Materials of the Future Today: For Sale: Flying Car Flying cars and invisible planes... all made possible by modern materials.  Investing in Silver Bullion Coins: The Best (and the worst) Silver Coins Founder and Publisher Brian Hicks gives investment details on the best (and worst) silver bullion coins for investment today. Gold at All-Time Highs: Chinese Inflation Spurs Gold Gold priced in euros hit a new record price last night. It's about to break out in dollar terms... and if it does, we are off to the races. Energy Crisis Coming: Russia's Mad Dash to Growth About a month before I took a 30-hour trip to Ulaanbaatar, I flew Ethiopian Air to Nairobi, Kenya. Upon arrival, I discovered two things: Successful Somali pirates were buying up all the real estate in the nice part of town, and... Strategic Petroleum, Indeed: Majors Buy SPR Crude as Supply Continues to Slide You should find our wanton oil disbursement a bit peculiar, especially since your own government defines the SPR as the "nation's first line of defense against an interruption in petroleum supplies." So tapping it inherently implies we're facing an interruption in petroleum supply. Peak Oil: Tighter Supply Ahead: Flirting with Peak Oil Disaster - For how long will the Saudis be able to bail out global production? Keith Kohl sheds light on the reasons the world's tightening oil supply is headed for full-blown panic mode... Historic Rare Earth Discovery: Bet On the Giant Squid Instead Analyst Ian Cooper uncovers the truth behind the rare earth find in the Pacific Ocean, explains why the discovery won't keep prices from rising, and offers a few ways to profit from on-land REE companies. Africa Energy Opportunities: Uncovered: Africa's Secret Energy Stash Editor Jeff Siegel discusses new energy opportunities in Africa. Anatomy of a Stock Market Rip-off: The W/WSAoW Propaganda Machine has Failed Again! The Weasels can bend the market for an hour, a day, or even a week... But in the end, the truth is always revealed. Silver is Now Rarer than Gold: $100 Silver Now a Conservative Target Silver is now rarer than gold. Today is a critical time for investors to own the white metal. Precious metals Analyst Luke Burgess explains. Refer a Friend to Wealth Daily

Related Articles Weekend Edition: QE2 Sets Sail Ben Plans, Commodities Soar 2011 Gold and Silver Predictions Why Are Gold Stocks Underperforming Gold? Wealth Daily Blogs 80% of Americans Want Higher Taxes Wait... what? NFL Lockout Over by July 21? How to Trade It... Netflix Hits Our $300 Target Where Does It Go from Here? Economic Releases for the week of Monday, July 18th, 2011: Jul 18 - NAHB Housing Market Index Jul 20 - MBA Mortgage Index Jul 20 - Existing Home Sales Jul 21 - Philadelphia Fed Jul 19 - Building Permits Jul 19 - Housing Starts Jul 21 - Leading Indicators You May Also Enjoy... Bet On the Giant Squid Instead 2011-07-14 - Ian Cooper The W/WSAoW Propaganda Machine has Failed Again! 2011-07-13 - Adam Lass $100 Silver Now a Conservative Target 2011-07-12 - Luke Burgess Chinese Inflation Spurs Gold 2011-07-11 - Christian A. DeHaemer Wealth Daily's Weekend Edition 2011-07-10 - Steve Christ

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