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Message: This Man likes GOLD ETF's best ...

This Man likes GOLD ETF's best ...

posted on Jan 25, 2010 11:48AM

There’s a global gold panic afoot—and there’s simply no stopping it.

Here’s why:

The Obama/Geithner/Bernanke easy-money policy is not only driving the dollar into the tank and raising the national debt to historic levels…

…but also flooding the world with so much cheap money that it’s trigging a new global gold panic the likes of which we’ve never seen before.

The situation is only going to get a whole lot worse as (1) $1 trillion in U.S. stimulus spending and (2) $800 billion in health care spending sends the dollar falling even further.

The end result will not only trigger one of the biggest rises in inflation we may see in our lifetime but also crush the hopes and dreams of millions of Americans who fail to understand the dangerous situation that’s now unfolding.

But once you understand the factors that could push the price of gold past $2,000 an ounce this year, as the dollar continues its freefall toward oblivion and the unwitting suffer the consequences.

I’m Robert Hsu, and I’ve never been accused of being an alarmist.

But frankly, I’m worried about the forces that are not only driving the U.S. dollar into the tank but also triggering the greatest gold panic I have ever seen in my lifetime.

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A recent report by the McKinsey Global Institute will tell you the same thing:

“In 20 years, China’s cities will have added 350 million people—more than the entire population of the United States today.”

“By 2025, China will have 221 cities with more than 1 million inhabitants—compared with 35 in Europe today—and 24 cities with more than 5 million people.”

“By 2030, 1 billion people will live in China’s cities…170 mass transit systems could be built…40 billion square meters of floor space will be built in 5 million buildings—50,000 of which could be skyscrapers.”

In other words, as China continues to transform itself from a nation of farmers to a nation of urban dwellers, the equivalent of 10 New York Cities will need to be built, and doing so will richly reward U.S. investors who invest now.

All thanks to the infusion of cash from foreign investors who are fleeing from the falling dollar right now.

Tragically, the financial media are missing this investment story by a country mile. That’s because they’re blinded by gold’s huge rise and simply can’t see beyond U.S. borders.

As a result, not only are Wall Street’s analysts missing this story, but U.S. investors are missing out on huge profits that are headed this way..

And I can tell you with unmatched certainty that if you invest alongside now—while Wall Street is looking the other way—you’ll be in a superb position to pyramid your wealth as the falling dollar and rising gold prices trigger a second wave of growth to hit China.

China continues to build more factories, more roads, more bridges, and more skyscrapers, as the rest of the world sits in recession.

When you consider that the U.S. economy is projected to grow 1% while at China will soon hit 9%, you don’t have to be Einstein to know that the surge in China stocks will form the foundation of a new wealth boom of historic proportions.

The bottom line is this:

In a world that’s pegged its fortunes on the strength of the U.S. dollar, repercussions of this collapse will be quite dramatic, not only putting powerful upward pressure on the stock prices of commodities-based companies that are fueling China’s new growth…

…but also changing the face of Wall Street forever.

As the U.S. easy-money policy sends the dollar spiraling south, the price of gold will continue to shoot through the roof.

However, the best way to profit isn’t by owning mining stocks. They’re simply too volatile, and your gains are based on the price the company can mine gold at.

We’ve found that the best way to profit from rising gold prices is through ETF’s that are backed by the bullion itself.


Our biggest winners to date include:

  • Aluminum Corp. of China, +285%
  • China Southern Airlines, +170%
  • https://order.investorplace.com/?sid=HP3213&en=1381588">Yingli Green Energy, +125%
  • Apple, +118%
  • SPDR Gold, +98%
  • Apple, +118%
  • China Mobile, +109%
  • Yanzhou Coal, +100%
  • Perfect World, +70%
  • Morgan Stanley China A Share Fund, +67%
  • Sinopec, +58%
  • Las Vegas Sands, +52%

Now with China poised for a second wave of growth, even these great gains could look like a drop in the bucket.

Which is why I can tell you with unmatched certainty that our research shows there’s a major buying wave in the works, and it will hit now that President Obama has signed his new stimulus program.

When it comes to China, the big money is always made when most investors are looking the other way. Frankly, it’s been that way for the past 120 years. It will continue to ring true for the next 20 as well.

With all eyes on the U.S. economy NOW, you couldn’t ask for a better time to add top stocks to your holdings.

That’s why if you are serious about profiting from China’s second wave, I guarantee it will be the best financial decision you’ll make in 2010.

Sincerely,

Robert Hsu
Editor, China Strategy

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