March 3, 2008

Grant's News Letter 

It’s happening NOW! The dollar has started to plunge sharply. Since the beginning of the year Oil, Gold, Silver, Copper, Wheat, Soybeans and the Euro have all climbed to new highs. This is not because these items are more valuable today; no instead it takes more US dollars to acquire the same amount of these items. The rate cuts the Federal Reserve Banks have made in the past 6 months are just beginning to have their effect on the economy, and the results telling.

Gold will hit $1000 before Easter. Silver just hit $20 TODAY! Now is not the time to keep your US dollars in the bank. The FDIC is hiring more regulators in the prospect of banks failing. The Chairwoman for the FDIC was on Fox news admitting that the number of troubled and failing banks is rising. In the event of a major wave of bank failures the FDIC will not have enough capital to cover more then a fraction of the insured accounts. Further more with rapidly dwindling purchase power keeping yourself in US Dollars at this time is an easy way to lose your savings.

I expect to see a sharp decline in the purchasing power of the dollar over the next 6 months. By summer we most likely will have $4 dollar a gallon gas, silver climbing up to $30 and gold skyrocketing up to $1200 an ounce.

Food is vital. If you can, please take the time to start buying storable food. I hope the worse will not happen, but I have to follow the Boy Scout motto here and “Be Prepared”. And taking the time to buy a 1-3 month supply of canned or freeze dried foods is a prudent course of action in a world full of food recalls and exploding wheat and soybean prices. And if nothing else it will give you plenty to share with your church come Thanksgiving canned food drive time. 

So the big gain in metals is underway, if you have not taken a position in gold yet, there is still time to get into gold and even more gains to be made in Silver. Other precious metals like platinum are also posting huge gains and will continue to do so. The US Dollar has a long way to fall before it hits bottom…and I see nothing as of yet to see the dollar going anyway other then down. In the past 12 months the USD index has fallen from .84 to .74 and I expect the dollar to continue until it hits .40 meaning that the commodity prices we see today should DOUBLE before the dollar begins to recover.