Agnico CEO Calls for $3,000 gold

Agnico CEO Sean Boyd said today on King World News that he is calling for $3,000 gold in the next 24 months. He's never called for gold to be this high before.

Here's his reasoning: “I think you’re in a situation right now where the problems in Europe are front page and it has hurt the euro. So the US dollar is stronger. If you look at the US dollar, that story is on page 3 or 4. It will be a front page story soon. The debt ceiling has to be raised and we really haven’t fixed a lot of the issues, whether it’s in the US or in Europe.”

This is what I've been saying for quite some time now. The US economy and the US dollar is not front page news - yet. Once people realize how much trouble we are in, I think we will be in for a major rally. This could happen after QE3, this could happen when the debt ceiling needs to be raised, again. They will wait to the last minute to do this...

He is also bullish on the mining stocks, and the juniors, which I think will produce the biggest returns going forward: "When it turns and gold turns, this is where you are going to get the best leverage. You are going to get the best leverage from the quality stocks, and then, ultimately that will move down the chain and you’ll see some huge returns coming out of the juniors at some point.”



GOLD IS GOING TO $5,000 an OUNCE. End of story. 

Read more at King World News.

Peter Schiff's New Book "The Real Crash" to be Released Tuesday

"The Real Crash - America's Coming Bankruptcy" by Peter Schiff will be released on Tuesday, May 22.
 
I've been following Schiff for quite some time now. He is most well-known as the guy who predicted the 2008 housing crash in the popular YouTube video "Peter Schiff was right." However he deserves to be known by the public for more than that prediction - in my opinion he is one of the best economists out there today.

Schiff has been warning Americans of the coming crash for a while now - "Schiff demonstrates how the infusion of billions of dollars of stimulus money has only dug a deeper hole: the United States government simply spends too much and does not collect enough money to pay its debts, and in the end, Americans from all walks of life will face a crushing consequence."

The media and the public is always chasing yesterday's news, unfortunately. They don't report on what's really important and what we really need to know - that the US is 16 trillion+ in debt and cannot pay its bills.

We are set to hit the debt-ceiling again later this year, currently around August. Of course of politicians will wait until the last minute to reach some sort of agreement. You can bet that it won't be pretty.

Schiff says that we need to reverse course immediately and come to the reality that we cannot keep running these budget deficits, running up the debt and keep printing money... we cannot keep thinking we can live the same lifestyle we have lived.

There are serious times ahead and everyone needs to get informed ASAP to protect yourself and your family from the potential financial crash that Schiff is warning about. 

Stay tuned for a review of the book coming next month.

Is Charlie Munger a Moron?

"Civilized people don't buy gold....I think gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939, but civilized people don't buy gold, they invest in productive businesses."

I just posted a comment to an article at the Motley Fool titled "A Civilized Rebuttal to Charlie Munger" by Christopher Barker. I strongly urge you to read this article and to follow Mr. Barker at the Fool. He has done a great service to the blog community over there and, in my opinion, is one of the best gold analysts out there today.

Here is my remark:

"Civilized people don't buy gold" - So basically China and India is full of uncivilized people. 

"I think gold is a great thing to sew onto your garments if you're a Jewish family in Vienna in 1939..."

Both of these comments are pretty offensive to a lot of people.

Gold is money.... Gold's value is in its rarity and in the effort it takes to get it out of the ground. It takes a lot of manpower, time and money to do this. It's not easy. And to do it profitably is even harder. Just watch that stupid Alaska show on the Discovery channel, although they are clearly gold mining amateurs, it's funny to watch. 

I have a simple question for people to ask: If you had the choice to hold your savings in the US Dollar or in gold coins, which would you choose? It's a simple question. 

I just think this is all common sense and would think people as "smart" as these two would understand the multiple reasons for owning gold. but JRS is probably right on the mark with the "Rothschilds agents" remark."

The fundamental reasons for owning gold are stronger than they have ever been. Gold is money, and will always be. You can't print REAL money. Gold will continue to rise in price (AND IN VALUE which is more important to understand) as long as the currencies continue to fall in value (which they will). It is crucial to understand this. Good luck to all.
Steve