Gold Aimed at $6,500/oz, Silver... $600/oz

Posted by Wealth Wire - Tuesday, May 17th, 2011

By Greg McCoach

Get ready. We are now entering the final stages in the collapse of the U.S. dollar...

And it's not going to be pretty. may 2011 gold flakes on blue

The massive increases in money supplies will tank the value of the dollar and erode the very fabric of America's economic security.

As a result, gold and silver prices are will no doubt skyrocket, despite the short-term major volatility we've recently seen.

Many investors have been rushing to me asking if it's too late to buy precious metals with gold in the $1,500/oz range and recently spiking to nearly $50/oz. I keep telling them the same thing...

Despite whatever the price of gold or silver is today, both metals will be worth more than twice as much within 12 months.

That means $3,000 gold this time next year! After that, I think gold could break $6,500 an ounce.

And as you know, silver's gains will be much greater. When the bull market is all said and done, there's no doubt we could be looking at silver prices exceeding $600 an ounce.

And we can all thank the crooks in D.C. for it...

In his first ever press conference after a policy meeting two weeks ago, Bernanke told us all the ways he has saved our economy.

What a crock!

The Federal Reserve can't prevent the coming financial meltdown.

So far this year, the U.S. Treasury has raised $293 billion in net cash by selling debt securities. And so far this year, the Federal Reserve has purchased a net $330 billion of Treasury notes and bonds.

This translates to the Fed providing 100% of the net new cash the Treasury has raised this year — plus another $37 billion needed to mop up even more mess!

But who will buy Treasuries when the Fed doesn’t? China? Germany? Japan? You? Me?

Going to Hell in a Hand Basket

We are now getting very close and even accelerating toward the end game for the U.S. dollar and the American Empire as we know it. Have your life boats ready.

It won't be much longer before people really start buying both gold and silver to protect themselves from this enviable collapse.

The only way out of our dilemma, absent very large entitlement cuts, is to default in one (or a combination) of four ways:

  1. Outright via contractual abrogation (surely unthinkable)

  2. Surreptitiously via accelerating and unexpectedly higher inflation (likely, but not significant in its impact)

  3. Deceptively via a declining dollar (currently taking place in front of our very eyes)

  4. Stealthily via policy rates and Treasury yields far below historical levels (paying savers less on their money and hoping they won’t complain)

I would bet on a combination of deception, betrayal, and trickery.

Following the Smart Money

This past month, the University of Texas bought a billion dollars' worth of gold and is having it stored in a private depository. This is huge news.

More and more, the intelligent group of our population is starting to figure things out. Unfortunately, however, the unsuspecting masses are being led perfectly by the well-oiled government/media propaganda machine like sheep to the slaughter.

This is going to be a terrible reality for so many unfortunate Americans who have no idea as to what is coming shortly down the road.

And you can rest assured the politicos in Washington will do what all politicians do when they are trapped in such a manner: lie, cheat, steal, spin the facts, cover their asses at all costs, abuse their power, and misinform on a massive scale.

But even with the help of the government-controlled media, the time of consequences can no longer be held at bay.

Free market forces will win; governments, banksters, and their power structures will come tumbling down just as we have been seeing elsewhere around the world these past six months.

The spoils will go to those who were prepared and understood the debacle years before it hit.

The precious metals and the junior mining shares will reward those who understood, and punish those who didn’t.

Yes, the precious metals market will be extremely volatile in both directions at times, but buy the dips as gold and silver will keep heading to higher and higher ground.

As long as the Fed and U.S. government follow the course of “Quantitative Easing” or anything like it, you can rest assured that gold and silver prices will soar!

If you leave your money in U.S. banks in dollars, you will lose most of the purchasing power of your money.

Use the downside volatility to buy any dips you see in the metals. Whether you bought gold at $600, $1,000, or $1,500 an ounce, it really won’t matter much when gold is trading at $6,500 an ounce or more.

The same thing can be said for silver. Don’t worry so much whether you bought at $25 or $50; silver will be priced in the hundreds of dollars an ounce, possibly $600 or more as the silver to gold ratio descends to 15 to 1, and possibly even 10 to 1.

In fact I believe silver stocks will actually be one of the biggest winners over the next 24 months.

Time is of the essence.

The lies of the Fed and the U.S. gov't are becoming bigger and more complex, their noses growing longer and longer as the fiat currency-economic-insanity comes to a head.

Greg McCoach
Analyst, Wealth Daily
Investment Director, Mining Speculator

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