Dow drops another 500 points - Panic!

This just in from WMI CEO Kip Herriage... As a VRA (Kip's Private Investment Newsletter) member I get update like this daily... read this excerpt.


...Widespread panic is upon us, right here-right now, and investors worldwide have lost complete confidence in the system itself. While the market is extremely oversold and due for a 1-2 day rally, it’s clear that the powers that be are ignoring history, along with their playbook from the Great Depression of the 1930’s.

What’s needed right now is a massive injection of liquidity into the financial markets (by global FEDs and treasury departments) and its just not happening to the degree that it is needed. As a result, there is now a “silent run” on the banks happening, and I recommend that you take the necessary steps to protect your family in the event of a worst case scenario. The financial system is as close to breaking as it’s ever been and you should make sure that you are banking with solid institutions, and that the amounts that you hold in cash are under the FDIC insured maximums.

We have been aggressively recommending gold since 2003, and as this news release from the government shows (see article below), it’s very difficult to buy “physical” gold. This is partly to due to record global demand, but mostly because there has been a huge shortage of gold for a very long while and few seemed to notice. Similar to the supply/demand situation with oil prices over the last year, we are about to witness a massive move higher in gold (and silver). This move has already begun, and before it’s over we could be looking at prices that are 5 times higher than today.

Here’s why: As the financial system continues to deleverage at breakneck speed, governments all over the world will have no choice but to flood the market with liquidity. Here in the US, the FED is beginning to print dollars as fast as they possibly can and then get them into the economy as quickly as possible. This is called “monetary inflation” and trust me on this…as dangerous as it is to an economy in the long term, it’s an absolute certainty that it’s the only way out of this meltdown.

Now, here’s why gold and silver must go much higher in price as it becomes clear that massive monetary inflation is upon us. Gold and Silver, along with every commodity that I am aware of, are priced in US dollars. So, they must continue to go up in price as the new supply of dollars floods the market! This flood of new dollars is the root cause of inflation and in a world of fiat, paper money, gold is a physical absolute. That is why people have been treating it as money for thousands of years. That alone makes it compelling. Ultimately, the bear market in the US dollar is a terminal bear market. The US government will also have to greatly devalue the currency to pay off record debts, or default on those debts. Neither is good for confidence in the currency.

As the article below spells out, it’s almost impossible to buy gold coins. VRA has recommended the exchange traded fund GLD (this is the stock symbol) since 2005, and it has more than doubled in price. But there is an even more aggressive exchange traded fund that moves twice as fast as gold. The symbol is DGP and it was up over 9% today alone. Please keep in mind that it also declines twice as fast when gold goes down, in the event that you decide to buy it.

Good luck to all. We will come out of this in time and there will be incredible values to be had in the equity and real estate markets…its just going to take a cleansing out process before we reach a real bottom.
I encourage everyone reading this to attend WMI’s Wealth Conference, Nov. 21-24 in Marco Island, Florida. This is by far our best line-up of world-class speakers and they will show you how you can not only survive this serious bear market and recession, but how to also profit greatly from it.

Kip Herriage
Editor, VRA
CEO and Co-Founder
Wealth Masters International
http://wmitoday.com
http://wealthmastersinc.blogspot.com