Dear Jim;

Today David Rosenberg, chief North American economist for Merrill Lynch, made a few very important points for all investors. Rosenberg has distinguished himself by being by far the most realistic US economist of any major investment bank. He was calling for a difficult economic period in the US months ago.

He agrees with me that we are currently seeing depression like activity in the US economy. His point today is one that you and I have often made, but he has Merrill Lynch and Bank of America listening to him.

He points out that over the next few years, the supply of gold will grow at a much slower rate than the amount of any fiat currency. He points out that the monetary base is growing at the rate of 19% per year, and when you add to that the swap lines that the US will institute to loosen up the world banking transactions, the growth rate will be much higher. He goes on to say, ”the supply of gold is going to be rising at a much slower rate than the growth of fiat currencies, and likely buy a huge margin.” Thus, as an alternative to depreciating currencies, gold is a very a very attractive investment vehicle. He further states,” If gold, in real terms, were to retest its old glory highs of the early 1980’s, it would end up testing $2,000 an ounce”.

Over time, the wiser of the big investment company economists are starting to endorse what you and your website have long stated. With money supply exploding as it currently is, the massive amounts of money that have been created by many countries in Europe and North America (especially the US) will force currencies down and gold up. It is a simple example of the law of supply and demand.

Respectfully yours,
Monty Guild
www.GuildInvestment.com

My Dear Friend Monty,

Amen to that Brother.

Respectfully yours,
Jim