December 3, 2008
Grant's News Letter
I would like to apologize to you my readers. You see I told you that oil would hit $100 a barrel before the end of 2007, and that didn’t happen. Oil didn’t hit $100 a barrel until the 2nd of January 2008, 48 hours after my deadline had passed. My bad.
If you are a fan of the strong US dollar, I have dire news for you. You will not see a strong dollar in 2008. The dollar has been hammered by two recent Federal Reserve Bank rate cuts. These cuts will take 4-6 months to hit the markets and when the full impact of these rate cuts hit home the dollar will plunge closer to that bottom resistance level of .50-.45 on the USD Index.
What does all this mean for precious metals? It means they will be going through the roof. Silver, Gold, Copper are all poised to hit record highs in 2008. Many analysts are saying Gold will hit $1,000 before summer. Experts are saying that adjusted for inflation Gold is only at half its 1980 high of $840 as the purchasing power of 1980 dollars was double to power of the present day dollars, so gold would have to hit $1600 to actually surpass its 1980 high adjusted for our presently deflated dollars.
Silver is still a sleeper metal. It has not corrected up at anything near the rapid raise of gold, and this spells HUGE opportunity. I recommend investing heavily in all aspects of silver RIGHT NOW! From Silver mines like SFMI, New Jersey Mining Company to going on eBay and purchasing rolls of Silver US coinage you need to get your hands on silver before its price corrects up and before the purchasing power of the dollar plunges further.
Copper pennies are starting to disappear. I have been purchasing rolls pf pennies and in the recent few times I have bought pennies from the bank to harvest the rolls for their pre 1982 copper pennies and have been coming across more and more rolls that have already been depleted of their copper pennies. This is telling me that the people are aware of the value of metals in our coinage and that copper pennies will become scarcer. When I started pulling the copper pennies out of rolls in Oct 07 I was finding about 15%-20% of the coins were copper, now I am finding about 5%-10%. I think this is an indicator of things to come and am again stressing that I expect copper to surge for the Chinese New Year.
If the Fed will stay true to its word, from Jan 2007, and phase out the penny, by making pennies defacto nickels, remains to be seen. But yours truly is valiantly trying to fill up as many arrowhead water bottles with pennies as he possibly can.
With the political instability of Pakistan and the US in this election year oil is poised to surge further up, mainly due to weakening dollars, and many nations switching their oil sales from US dollars to Euros.