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Source for Silver Eagles

This message is going out to the Silver Investor mailing list. We have had numerous requests to help people find a source for Silver Eagles. Miles Franklin was one of the highest rated dealers in our bullion sellers report and we are happy to let our readers know that Miles Franklin has over 100 sealed 2008 mint boxes that contain 500 one ounce Silver Eagles.

Sincerely,
David Morgan

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We have 100 sealed 2008 mint boxes that contain 500 one ounce Silver Eagles. They are available for immediate delivery for less than $10,250 per box, depending on the spot price of silver when your order is placed. This is FOR US DELIVERY ONLY.

This morning I sold 350 shares of SLV for $60,000 and used the proceeds to purchase 6 of the mint boxes for myself. I want you to be sure and read Ted Butler's excellent article titled A Hidden Silver Default? It can be found near the end of this newsletter. It motivated me to sell the last of my ETF silver for physical silver.

In all probability, the low for gold and silver occurred a month ago. According to Jim Sinclair, "As far as going forward, I am standing with the opinion that gold bottomed at the late April early May bottom, and that level will hold."

Since then, gold has been building a strong base and has been contained in a "trading range" from $860 to $890.

On June 13, 2007 gold topped at $648.80. The Dow was approximately 13,400, oil was $66 and the dollar was 82.31. This morning gold is $907.20, the Dow is 12,029, oil is $136.54 and the dollar is 73.43. In the past 12 months, gold is UP 39.8%, the Dow is DOWN 10.2%, oil is UP 106.8% and the US Dollar is DOWN 10.8%. The numbers don't lie. Both the dollar and the Dow are worth about 10% less today then they were a year ago. Meanwhile, the price of oil has doubled and gold is up over one-third. All that it takes to come out ahead in the precious metals game is patience.

The bull market is still young and robust. This is a "generational" bull market and believe me; it still has many years to go. Jim Sinclair targets $1200 an ounce or more by the end of the year. If his target is accurate (and they usually are) then gold will have gained more than one-third (from $900 to $1200) during 2008. That's a "typical" year for gold since the beginning of the bull market in 2001. From 2001 to the present, the Dow is up around 3.5% and gold has increased while gold increased from $252 to $907, or more than 360%. Put another way, in 2001 it took 46 ounces of gold to "buy" the Dow (11700 divided by $252). Today it takes around 13.3 ounces of gold to "buy" the Dow. They are two different asset classes moving in opposite directions!

What about silver, you ask? Well, silver, a topic that I will discuss in more detail shortly, is up 27% in the past year.

It is possible that the stock market will continue to rise from today's level. After all, the ocean of money being created by the world's central banks has to go somewhere and it all can't search out gold and silver. But what I am certain of is that whatever gains occur in the stock market will be minimal compared to the percentage increases in gold and silver.

Could gold sell for $20,000 an ounce?

There is around $100 trillion in paper money in the world. There is around 5 billion ounces of gold above ground in the world. If you divide the total amount of money by the total above ground ounces of gold the theoretical fair value of gold comes out to be $20,000 an ounce. That is not unrealistic if - or more accurately, when people lose faith in paper currencies. Gold would have to rise 22 times to get to that level. Actually, gold has already risen by nearly 22 times since Nixon took the dollar off the gold standard in 1971 ($42.22 to $907 is a rise of 21.5 times) so don't scoff at the notion that the process can't continue!
Gold is not an "investment." Gold is Money. It protects your wealth from confiscation by via inflation. A financial storm is just beginning and gold and silver will be your lifeboat.

Inflation? What inflation? Inflation is only 4.2%, so what's the big deal?

Let's dig into this a bit. First of all, the Bureau of Labor Standards number is deeply flawed and increasingly recognized as out of touch with reality. According to their data, the CPI is up 4.2% y/y.

According to The King Report, "For May, the BLS has energy prices up 4.4% after showing no change in April and gasoline +5.7% m/m, with April -2.0%! In June, the BLS should rectify the under-reporting of energy inflation. Gasoline futures are up 33% since March. If the BLS actual allows the full fury of energy inflation from the spring to appear in June, the CPI will be horrendous unless the BLS finds other prices to seasonally adjust lower."

Inflation is calculated at 11.8% by Shadowstats. I have seen other estimates ranging from 7-8%. One thing is for sure, inflation is NOT running at 4.2%!

The CRB made ANOTHER all-time high, gaining 1.41 to 451.18.

Natural gas made an all-time high, closing at $12.952, up .019.

Soybeans soared, up 24 cents to $15.58, an all-time high close.

Corn did it again, gaining 9.75 cents to $742.45.

Germany's wholesale inflation rate reached 8.1pc in May, the highest level in 26 years.

The following table lists year-over-year inflation as of June 2008

In Argentina and Vietnam, as one example, panic-stricken residents are swapping their currencies for dollars and Euros. But given the double-digit growth in M3 for the dollar and euro, these inflating currencies may prove to be a dangerous place to hide from inflation. Even for the currencies that are touted as being stable, interest rates are still below the rates of inflation wherever you look.

Unless interest rates are increased materially above the rate of inflation, prices will continue to rise. But with the high level of bad debit in the world banking system, the financial system would not survive the strain of a significant interest rate increase. For a period of time, stagflation will become a new way of life for many of us.

A weak and down-trending dollar leads to rising import prices

The BLS reports that the import price index surged over 16% year-over-year. Do you think that this increase will find its way into the CPI?

The Silver Investor