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Wall Street Grand Report
Important Alert:
Congratulations to all of our club members that have been listening to us and loading up on gold and silver stocks over the past couple years! The ones that have should be ecstatic right now! I know I am! Gold is at an all-time new high breaking past $1,300 an ounce!!! We told you this would happen! The best part is WE ARE STILL GOING HIGHER! I know many people still believe there is no way we are going higher and some huge correction is coming but these are the same people that have been missing the boat and probably will be buying when we hit $1,400 an oz! The truth is gold is still no where near its all-time peak price in real terms! How many times do we have to repeat this! Well we will still keep saying it until all of our members get it through their heads and we get thank you emails from everyone while gold and silver explode.
In 1980, gold reached $873 an ounce. Last week saw gold close at a new record of $1,277.50 an ounce, and adjusted for inflation, it was still under $460 in 1980 dollars!
Gold would have to rise above $2,435 an ounce to exceed its high from three decades ago, based on the CPI’s current reading. There are a million reasons why gold and silver are going higher. GFMS, a London-based consultancy that tracks the gold market says that thanks to buying by Russian and several Asian central banks, central banks would be net buyers of gold by about 15 metric tons of bullion this year. The last time that happened was 1988! My favorite reason is the fact that Helicopter Ben at the Federal Reserve stated that they will be printing even more money! Hooray!
Inflation, Inflation, and more Inflation!
Now if you are still not convinced or if you just want to make more money then you need to listen to me and get into silver immediately. For awhile silver has lagged behind gold but this is starting to change as we speak. Now, silver is leading (in percentage terms) the breakout to the upside and is about to make history. We could see the biggest boom of our lifetimes when it comes to silver and I want everyone positioned to capitalize on it.
Here are three factors driving silver through the roof that you should be aware of …
#1) Industrial Demand for Silver in China Is Soaring! Slightly more than half of silver’s annual demand is for industrial uses. Silver is used in everything from small electronics and computers (silver is the best metal for making electrical connections) as well as batteries, chemical catalysts, silver plating, mirrors, even nanotechnology. Silver paste is used in 90% of all crystalline silicon photovoltaic cells, which are the most common type of solar cells. So, it’s no wonder that demand for silver in China, the factory to the world, is roaring higher.
Net imports of silver into China quadrupled in the first seven months of 2010. That is putting pressure on global silver supplies even as investors demand more of the metal.
#2) New and Growing Silver Investment Demand. We’ve already seen the silver ETF's buying silver hand over fist. In fact, we've seen it first hand with our option call on the silver ETF SLV! SLV just broke $21 an ounce today! If you listened to me and invested into the January 2011 $20 calls for SLV at $0.89 you would be up about 120% already as they are worth close to $2 already and it's only September!
As gold gets more expensive, investors are taking another new look at silver. The end result could be an explosive move in silver prices.
#3) The Gold-Silver Ratio Is Out of Whack. We've gone over this countless times! The current gold-silver ratio — or how many ounces of silver it takes to buy an ounce of gold — is about 61 to 1. That is much than the historical ratio of 16 to 1.
And if you don’t like looking back at the long term, just look at the ratio in the last precious metals bull market. In 1980, the price of silver to gold — how many ounces of silver it would take to buy an ounce of gold — never got higher than 38 to 1.
The gold-silver ratio is dropping, as silver starts to catch up with the sparkling gold. If we went back to a 38-1 gold-silver ratio, silver would cost over $33 an ounce. If silver did move toward the historical ratio of 16 ounces per ounce of gold, silver today would cost $80 an ounce!... And that’s without gold budging another dollar. And gold’s trend is up — WAY, WAY UP!
My short-term target is $30 by end of Fall. Long-Term target right now is $50 an oz (Double where we are now!)
We have talked about many gold and silver stocks over the past year that have made outstanding gains but they are all going much higher, in my opinion.
Our Top 3 Silver Picks continue to impress:
EXK which we mentioned at $1.53 closed today at $4.06, up 165%
HL was at $1.69 after our initial profile and it closed today at $6.25, up 270%
SLW was at $6.54 after our initial profile and it closed today at $26.60, up 307%
If you missed our latest new undiscovered silver pick this week DTOR at $0.24 please make sure to research it this weekend before it starts to take off! DTOR closed at $0.27,up 22.7% on the day on no volume! DTOR only has a float of about 3.5 MM so once demand starts to come in who knows how high it could go! Don't overlook it because I'm sure once their new Director from Hecla HL starts to execute we could see this company head to new levels overnight. I'm sure they see the potential as silver is about to head to $25+ an oz in the short-term! This is a ground floor situation so is risky but these risky situations sometimes become the biggest winners!
We will continue to look for more undiscovered and solid gold / silver investment opportunities.
Have a great weekend everyone!
Gerard Adams
President
Wall Street Grand Club
More Updates To Come ...
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You can call us Toll free at 1888-9-Club Grand (1888-925-8247)
Offices are open Monday - Friday, 9:30 am-4:00 pm EST
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