If every investor you know isn't talking about gold yet, they will be. Gold almost cleared $1000 an ounce September 3rd when it hit a six month high of $999.50 an ounce. This is very significant as gold has broken through a psychological trading level.

The US Dollar continues to lose value. It is very important to keep a close eye on the Dollar's strength (or lack thereof) as its weakness plays right into Gold's hand. Two weeks ago, on August 23rd, our Weekly Volume was titled, "Don't Forget About Gold." When that Volume was released, Gold was trading at $946 an ounce. It is now up over $50 dollars an ounce since our report and investors are focusing on Gold once again.

Gold is gaining strength as we knew it would. Trillions of dollars in stimulus has been pumped into our monetary system. The longer the Fed allows this historic amount of capital to linger in our economies, the greater the risk of inflation. As the weeks and months go by, the Fed has yet to take any money out of our monetary system they so furiously poured into it over the past 9 months. Stimulus money continues to be contributed to the economy and there is no doubt that it has been an integral reason for the historic rise in global stock markets this year. But there will be ramifications, as every action has a reaction.

Things are about to get interesting. The global consensus is to continue pouring stimulus money into the world economy until the recovery has shown more stability. The G20 met on September 5th and decided that the world economy was far too fragile to remove any of the multi-trillion dollar stimulus packages which were initiated during the crisis. In fact, the G20 decided to keep spending and keep propping up the global economy with even more stimulus capital. This is a very dangerous balancing act that over time can result in one thing: INFLATION.

The more money pumped into the economy, the harder it becomes to take out. Companies and entire sectors now expect a helping hand and haven't been forced to stand on their own two feet since the crisis first hit. The days of handouts from the government can't last forever. We need to see REAL GROWTH, REAL EARNINGS, REAL GDP - without government aid.

Countries are supporting the stimulus packages to avert negative GDP, but at the same time are having their central banks buy up large quantities of Gold. Russia and China have been stockpiling and accumulating as much Gold as they can. Russia, on average, buys about 4 tonnes of Gold per month. In July, the Russians bought just under 20 tonnes. In recent years China has been buying about 91 tonnes annually, but lately they've been increasing the amount of Gold they purchase.

There is a reason Countries and central banks want a large part of their currency reserves in gold. If the Fed and respective central banks around the world are too slow to initiate monetary policies to take out the trillions of dollars in aid, currencies will be devalued and a period of intense inflation will be upon us. Countries with large Gold holdings will flourish as their wealth could multiply despite their fiat currency's value going down the toilet.

Our team is monitoring several central banks along with their buying patterns and will notify you of anything we deem significant.


At this stage of the market rally, it is our opinion that the upside has left the blue chips which have rallied 40% or more in the past 4 months. Financial stocks have more than doubled in the past six months. Last week, 75 of the 79 financial companies on the S&P 500 declined as that sector is now showing its weakness. Unless these financials start producing Gold, it is safe to say, our team will be looking for profits elsewhere.

Our team has been looking at Gold Companies with:

1.) Defined resources in historic buy-out regions.
2.) The ability to move the deposit into production over the next 18 months.

Scott Tapley, who helps oversee $2.5 billion at 1st Source Investment Advisors Inc. in South Bend, Indiana made a comment that sums up our view of many financial stocks, "People are picking companies they think can survive and just buying, and at some point you have to pause and wait for confirmation of real earnings."

We are entering a very important time period for the market. Our team is allocating a significant portion of our assets into a select group of junior Gold Companies we have been researching and working closely with for months.

It is our strong belief that as this Gold rally intensifies and economies move into inflationary environments, juniors with defined, economically viable resources will be the investments coming out on top. The majors have been selling Gold for over $900 an ounce for several months and have an excessive amount of capital allocated to purchase viable deposits that can be quickly moved into production.

Now you know what our team is looking for.


All the best with your investments,