What can we say about gold?

It would really take an idiot now not to be able to see the stronger role that gold now plays. Gold’s critics these past two years have secretly been wishing & hoping to see gold crash back down to 250 an ounce, but I have news for these guys.

That just ain’t going to happen.

After a 2 decade bear cyclical market it is now time for a 2 decade gold bull market. And while the gold price will of course not travel up in one straight constant line gold’s fortunes are definitely turning more positive every day. The overall mass public continues to be fooled about the opportunities gold now presents as an investment. But professional money managers are not fooled nor are they blind to the established fact that gold’s fortunes are growing stronger every day.

Our world is changing & the delicate peace we enjoyed briefly for these past 2 decades has come to an end. And what a different world we wake up to today & so very different from even 10 years ago.

Those observant souls who recognize these changes will profit from these changing events. And those blind individuals who still are waiting for WorldCom, Enron & Lucent to make a come back will be sadly disappointed.

Ever hear of a writer called John Crudele?

“If you look at a new document on the Treasury Department Web site called the “2003 Financial Report of the U.S. Government,” you’ll see that this country’s indebtedness grew by $3.7 trillion over the past year.” John Crudele, New York Post, 3-11-2004

“Nearly $2 trillion of that amount of new indebtedness is because of money we will owe in the future when today’s taxpayers start collecting Social Security & Medicare. IN ALL, THE COUNTRY IS $34.8 TRILLION IN DEBT.” John Crudele, New York Post, 3-11-2004

And more?

“…if the government didn’t have its own accounting method & had to record costs like businesses do, the deficit would probably be more than $ 750 billion. For one year.” John Crudele, New York Post, 3-11-2004

And where is this unbelievable debt taking us?

“The most worrisome thing is that the INFLATION is occurring even though the U.S. economy is showing only modest growth & very little job creation.”

And remember that this debt is owed to Asia & to the rest of the world. Forget about that crap that says “we owe this debt to ourselves.” And you do not believe that the day is coming when the rest of the world is going to demand that this debt be paid?

“The West, particularly the U.S., does not have much time during which to get its house in order. National debt, industrial decline, problematic demographics & resource depletion. All these horsemen are on the horizon, riding our way.” Bill Bonner, Daily Reckoning, 2-27-2004.

Wow!

Let’s stop here & re-read part of this last text.

“…resource depletion.”

Did you catch that readers? We’ll say it again. “…RESOURCE DEPLETION.”

And are you presently subscribed to ANY publication or newsletter reviewing on a timely basis opportunities in this opportunity of “resource depletion?” And these resources are gold, silver, oil & other commodities necessary to our industrialized world & high standard of living.

Oh, by the way.

We just bought & had installed an invisible fence in our yard. Tried it on the cat. Doesn’t work. Cat headed straight past the shock line & on to her favorite perching spot beneath the nest of a dove in our yard.

I have an apology to make to Wal-Mart.

I had been critical recently of Wal-Mart’s low wages & I still am, but I have to give them praises for their charitable giving to education.

“WAL-MART HEIRS POUR RICHES INTO REFORMING EDUCATION, JIM HOPKINS, USA TODAY, 3-11-2004”

“The Walton’s – the USA’s richest family – have quietly become top philanthropists in education reform, including controversial charter school & school –voucher causes. … the Walton’s giving could soar to as much as $1 billion a year as they shift more riches to charity.”

“… the family expects to donate as much as 20% of its $100 billion in Wal-Mart stock.”

And where is this money going? Editor

“Allies say the family’s giving is injecting competition between public & private schools that will produce better-educated children…”

I sure can’t find fault in this.

The lack of a charitable & philanthropic spirit is probably what did poor ole’ Martha Stewart in who, by the way, is still championing & proclaiming her innocence.

“…there should be no politics & no national frontiers in learning.” Elswyth Thane, Dawns Early Light, 1943

And I am all for any significant program of giving that encourages the advancement of “charter school & school –voucher causes”. And I also like the idea of a little healthy competition for our public school system.

Sam Walton used to preach the following when he was alive: “I’D LIKE TO SEE AN ALL-OUT REVOLUTION IN EDUCATION…” JIM HOPKINS, USA TODAY, 3-11-2004”

I always admired the founder of Wal-Mart, Sam Walton, & always believed him to be a man of integrity. Maybe Wal-Mart yet has a chance to return to its ethical roots.

An interesting memory I have of this man is the fact that he used to drive around his home town of Bentonville, Arkansas in an old beat up pickup truck. He would visit the local diners dressed like a farmer driving that old pick up truck & he never exhibited pretensions of personal wealth.

I picked up the following great quote in Bill Murphy’s LeMetroploe today:

“If you wish to succeed in life, make perseverance your bosom friend…” Joseph Addison, LeMetrople, 3-11-2004

I like this quote & the best most important word we just read was the word “perseverance.”

Why is “perseverance” such an important concept? It really is true that the most successful folks are not just those with brains or lucky breaks. Success generally comes to those who stick with a battle plan & without deviation they persevere onward & forward through the rain, through life’s crises, past personal crisis, & they persevere even after significant failure.

Show me someone who is successful & I will also present to you an individual who has probably experienced significant failure in their life. It is that perseverance even through crisis & failure that ultimately leads to success.

Wow!

That was deep! Now let’s talk about making money.

“…we believe that this year will prove a foundation (& perhaps a watershed) for the next few years. We also believe that the future holds far more volatility than the recent past. It does not look tranquil for the States…” Gold Authentic Money, Julian D. W. Phillips

It is a fact that gold, silver, precious metals, resource stocks & contrarian plays generally provide the greatest returns on the dollar. Just one defense related play we covered a month ago went up 4 times within 2 weeks after we reviewed the company.

A $10,000 investment in this sector could easily have the potential to turn into $1 million in the right environment. And we have definitely already experienced gains of over 10 times with certain selected plays.

We provide a subscription based service that is a one time charge to give our subscribers a solid base & foundation to begin their quest to discover those solid contrarian plays we feel have the most potential. Volatile times present great opportunities to make money & these times are definitely becoming more volatile as this century unfolds.

We mentioned last week about an excellent candidate for a silver stock that we have put off until this weekend to review. This is a hot play & one you DEFINITELY should be aware of.

Subscribe to Gold Letter Alert!

“MINING COMPANIES ARE IN THE EARLY STAGES OF A GROWTH CYCLE AS DEMAND FOR NICKEL, COPPER & GOLD INCREASES.” JIM JUBAK, MSN MONEY

We review gold, silver & other contrarian plays. And your subscription is just a one time payment that lasts year after year. Now is the time to get into the precious metals market if you desire to make serious money.

http://goldletterdv.com/subscription.php?uid=d3961c0bba2a2cfbb434bd5651c2e667

And let us remind readers that we feel that this bull market is just BEGINNING.

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Comments?

David N. Vaughn
Gold Letter, Inc.
David4054@charter.net
Gold Letter Website

March 18, 2004

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