This morning I received a Special Report from Dr. Steve Sjuggerud. In it he assembled some writings from various experts, to help provide a snapshot of today's markets and make a case for gold. Some of the data is dated but the ideas are timeless. Here's a few that caught my eye. In 1980 Gold traded at about the same level as the Dow. Dow 800 and Gold 800. Today, gold is very cheap as compared to the Dow with the Dow today around 10,300 and gold just below $1250 an ounce. Just one indicator that gold has potential for massive gains.The report also points out how government's ability to print money is, in effect, infinite. On the other hand, you can't just print more gold. Relatively speaking, today's gold supply is fixed and gold demand is rising. Hence rising prices. Did you know they say the entirety of gold produced throughout the history of the world could fit on the basketball court at Madison Square Garden? And here's one that's very intriguing. The question has been raised, what if we have deflation instead of inflation? Here's Sjuggerud's comment: Gold will rise during inflation... and during deflation. Gold rises as the value of the dollar falls. But what many people don't understand is that gold will do even better during deflation, as the government lowers interest rates and wildly prints money to offset that deflation. This leads to substantially higher gold prices... which is exactly what's happening right now.As I write, gold knocks on the door of another all-time high, even though there is an eerie calm on the economic news front. There's no hype about Greece, the rest of Europe and their debt issues; no reported news of geopolitical unrest, (even though Israel appears on the brink of war with Iran); no real panic over jobless claims that came in horrible this morning. The hype level is down and the gold price is up. Somehow I don't think this calm will remain very long. As always stay tuned to all of Lear Capital's news sources. And by all means, if you want to buy gold, call your favorite coins dealer Lear Capital.
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