GOLD ECONOMY

GOLD AS WORLD STANDARD

Over the next two years, you'll witness the greatest surge in gold prices in market history — at least 100% above where gold sits today as I write.

But even better, I've just discovered a way for you to sneak into the soaring gold market for next to nothing with what I call "penny-per-ounce" gold.

That is, doing this is a "backdoor" way to owning as much of a position in gold as you like... for the equivalent of paying a single cent per ounce.

There's no alchemy involved. And no trick.

It's just a gold market "loophole" most investors know nothing about.

I'll show you how it works here in this letter.

It's no skin off my nose if you opt not to do this. I'd just hate to see you miss out. And even if you decide it's not for you, you'll still want to know about the astounding silver stock I'll name for you. You can it pick up right now for a 40% discount to what it should be worth on Wall Street... plus, in this same letter, I'll show you the best way to play gold using the powerful new efficiency of gold-backed exchange-traded funds (ETFs)... not to mention the single best gold stock to own right now and possibly for the next several years, if you choose to own only one.

Here's the clincher...

I'm going to give you all four of these recommendations... and all the information you need to act on them... FREE.

The symbols, the buy and sell targets, and specific step-by-step instructions on what to do. No charge.

Why would I do that? You'll see.

But first, let's dig in and get started...

Epic Boom Opportunity #1:
HOW TO SNAP UP RAW GOLD...
AT JUST 1 PENNY PER OUNCE!

What if just before the biggest gold price surge in recent history, you could get your hands on a large stash of the yellow metal... for less than one penny per ounce?

There's no alchemy involved. No secret technology. And no smoke and mirrors. But a small upstart new mining company is doing exactly that.
Its technique is simple.

But it’s just about the only company across the entire mining industry that's able to do this right now.

In 2005, it mined about 100,000 ounces this way. For 2006, it quadrupled that haul, using this same technique. Now it’s on track to be a million-ounce producer... with at least 12 million ounces of gold still in the ground.

The math is simple...

Four Times Your Money Even if
Gold Prices Don't Budge Another Inch

Think about it.

Anybody who can get gold out of the ground for a penny...

And sell it for even $500 per ounce or $400 per ounce stands to make a handsome return. And so do their shareholders.

What I'll show you here is gold hitting as high as $700... $1,000... or even $2,000 per ounce... over the next 12—24 months.

Owning shares of this company could mean at least a 400% gain in that time period, even if only half of what we're calling for comes through.

So here's how this works.

For most miners, getting gold out of the ground is done in pretty much the same way across the industry. But not for this wily little company I've been telling you about.

What it’s done is invent a way to mine the gold — and rich veins of raw copper — at the same time.

The copper mining is so lucrative the profits more than cover the cost of pulling the gold out of the same hole. And that means close to 100% upside potential on the gold, no matter the current spot price on the market.

Any way you slice it, it’s booking massive profits.

At Least 2 Years of Locked-in Value,
No Matter How High Gold Actually Soars

Right now, this "little" undiscovered, new mining company already has five mines up and running. Plus, one more under construction. And three more projects after that heading into development.

It also has enormous land holdings with lots of undisclosed mineral potential. Plus, it just swallowed whole another holding with as much as 2 million more ounces of gold in the ground.

Add that to measured and recorded reserves of 12 million ounces... plus another 14 million ounces that are either "inferred" or "proven and probable."

Sounds rich?

Don't forget, I haven't even said anything yet about the nearly 2 billion pounds of copper tucked under this company's territory. And copper is the key to this whole secret.

Because it's the steady flow of cash from the copper — remember, this company has innovated a way to get both the copper and gold out of the ground at the same time — that's making the gold production, in relative terms, possible for less than one penny per ounce.

Here's the best part...

This little company's savvy management had the foresight to hedge the entire copper reserve by making deals that locked in its copper sales at record levels for essentially the next two years.

So even if the global economy keels over and copper prices, in general, fall, this company will keep on raking it in on its copper discoveries... which means it keeps on getting the gold out of the ground for next —to nothing at the same time.

Did I mention?

This company has no debt. It’s also sitting on a massive pile of cash. And that pile just keeps getting bigger. This is partly why the stock not only has huge upward potential, but it also pays a dividend.

This is a powder keg waiting to pop. With gold prices creeping higher... and then accelerating... this isn't going to stay off mainstream radars for long. You'll need to make a move on this soon.

I want you to have everything you need to make the call, as educated about the pros and cons of this as possible.

So I've commissioned the best experts on my team of analysts to write it up in a FREE special report I want to send you. It's called Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!

I'd like to get this into your hands as soon as possible. At no charge. Inside, you'll find out everything you'd want to know about "penny-per-ounce” gold. You'll also discover even more brilliant and innovative new ways to get in on the sudden new surge in the yellow metal, inside this same free report.

But maybe you're already asking yourself...

Why Gold and Why Now?

Before I rush you that FREE report, let me ask you this...

Do you remember the last time gold sold for over $2,000 per ounce?

Of course you do. Maybe you didn't think of that way. But actually, gold has already sold for more than $2,000 per ounce. Let me show you.

First, you have to think for a moment as if it's 1971. Gold is selling for $35. This is the year Nixon breaks it from ties to the dollar. Gold prices start climbing. By 1975, it's hit $196. And by 1980, we're talking $850. Sure, you say, that I remember.

But maybe you also remember back then you could you could also make $27,700 per year and it was a pretty decent living. About as good as making $100,000 per year today.

You could also buy a house for $50,000 then and, just on an inflation basis, it would be worth $250,000 today. (In real estate terms, it might sell now for $500,000 or more.) And back then, you could retire on $270,000 in savings... and it would be as good today as being a millionaire.

So you can see, trying to compare yesterday's gold price to today's — on an even basis — is like trying to compare apples and armadillos!

Take a look at this chart...

In today's dollars, 1975 gold at $196 is more like $750 in the current market. And 1980 gold, the peak year at the historical price of $850, would now clock in closer to $2,176. And remember, this is what you get using only the most conservative market calculation of gold's worth. There are other, even more telling ways to value gold.

Try this on for size...

$38,349 per Ounce!

Remember, for a good part of America's history, every dollar in your pocket was a dollar backed by gold. So it's not so crazy to ask yourself... if America has 8,180 tons — nearly 261.7 million ounces — of gold in reserve... how many dollars does that buy?

The answer will shock you.

When dollars became unhinged from gold, the printing presses at the Fed cranked up. By 1980, for every ounce of gold in America, the financial system carried $6,966 in cash. That's $1.8 trillion total. But get this — by the end of 2005, the total real money supply shot to over $10 trillion.

That's $38,349 in circulation for every ounce of gold in reserve!

Of course, it's even higher now. The printing presses are still cranking, well into 2008. Only now, it's much harder for you to know how fat the actual money supply has gotten. See, by March 23, 2006... the number had gotten so embarrassing... the Fed actually "retired" a number, "M3," which was the most broad-reaching measure of how much cash floats around in the system.

Yep. Instead of fixing the problem, the politicians just stopped talking about it. Is that any surprise? Fortunately, you don't need Washington's help to get the real picture of what's happening today in the economy... or to find out what's next for the price of gold.

Because you can just read on and see for yourself...

Precious Metals Megatrend:
3 Charts and the Truth

I'm about to show you three charts.

Take a look at these first two side by side...

A hundred different snapshots could show you the mess we're in. Soaring personal and government debt. A plunging savings rate. Record-high mortgages as a percentage of GDP. Plunging yields on 10-year Treasuries. Soaring but "hidden" unfunded government liabilities, to the tune of $53 trillion...

But none show it better — and more plainly — than these two charts I'm showing you right here, above. The first is our skyrocketing money supply. The second is our plummeting purchasing power. That's about as plain as you need to get.

How so?

Because this is the starkest vision you'll ever get of the absolute carnage that's piling up in a "secret war" Washington's fighting right now... and has fought, unsuccessfully, for the last 20-plus years. No, not the war in Iraq. Or Afghanistan. Or even some possible future conflict with Iran.

This is another kind of war... right here at home.

The enemy is a dark nemesis — a dead and stagnant economy. And the Fed secretly fights to hold it off desperately every single day. This is a worse enemy than recession. It's the enemy called deflation, an economy in which nothing moves and nobody buys a thing.

The weapon of choice in this ongoing secret war is flooding the market with cash and easy credit. Because regular cash and credit injections make everyone feel rich. The theory goes, when you've got cash and low-priced credit, companies borrow and expand. Consumers borrow and spend. Families borrow and buy homes.

This is why, since 1950, the total amount of money in circulation has soared well over 3,000%! And it's all good... or seems good... until it goes all wrong.

See, the trouble is even money can't escape the natural law of supply and demand. When there's too much of it floating around, each dollar is worth that much less relative to the whole. Suddenly, you've got price inflation.

Suddenly, every dollar you have in the bank is worth less.

Hemingway called it the "first panacea of a mismanaged nation."

And in our case, it's helped plummet the purchasing power of our dollars by a mind-blowing 96%. The dollar's worth today is just pennies compared with what it bought a century ago. In fact, its worth is just a fraction now — as we just demonstrated — compared with the last time gold prices boomed, in the 1970s and early 1980s.

Only now, unlike then, the "wiggle room" we have left now between us and a complete dollar implosion is so thin it's practically transparent. Could total implosion actually happen? Absolutely.

Take what relatively new Fed Chairman professor Ben Bernanke famously said in a speech at the National Economists Club in Washington, in November 2002:

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology called a printing press (or, today, its electronic equivalent) that allows it to produce as many U.S. dollars as it wishes at essentially no cost... We conclude that under a paper money system, a determined government can always generate higher spending and, hence, positive inflation.

In other words, if you want to juice an economy... turn on the printing presses and make it as easy as all get-out to borrow money at a low, low rate of interest. Bernanke and others in the Fed think that's no problem. They think they can handle it, just so long as short-term interest rates don't go to zero.

But a brilliant and famous colleague of mine — someone I'll introduce you to in just a second — completely disagrees. Flooding the market with easy money, he recently told me in private, is more like burning your furniture to keep warm. It cannot last as a stopgap measure. It's courting disaster.

He and I both like to think an even smarter economist, Ludwig von Mises, got it right instead, when he said:

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

See, thanks to all that Fed-driven loose credit, consumer debt has soared. It's never been higher. In 1987, when Alan Greenspan first took his job in Washington, consumers were in the hole by about $10 trillion. Where are they now? An unbelievable $37.3 trillion in the red — or nearly 350% of GDP!

Think about that.

As a whole, Americans owe 3½ times more than the entire U.S. economy — the largest in history — produces in a year. If you or I owed that much on a personal level, we'd be suicidal.

Meanwhile, the government doesn't seem to worry. It spends money even faster. It borrows even deeper. Even this administration now, with full knowledge of the implications of a credit disaster, has already borrowed more money since 2000 than every White House since the time of Washington!

By 2017 — says the Heritage Foundation — our federal deficits should be soaring by at least $1 trillion per year. After that, it will jump to $2 trillion. That's not how much we'll owe. It's how much we'll add to what we owe... every 12 months, for as far as the eye can see.

Doesn't that sound to you like we're at a turning point?

"This Isn't 1979."

Then, they had Paul Volker, who crushed inflation. Today, we've got Ben Bernanke, who embraces it. Then, they had a national debt of just $845 billion. Today, it's between $8.2 trillion and $53 trillion, depending on whom you believe.

Then, we had a hostage crisis in Iran. It ended. Today, we've got Iraq, Iran, North Korea, Nigeria, Afghanistan... and an unending "war on terror." Plus bin Laden still hiding in caves and Chavez mouthing off in oil-rich Venezuela. Then, you paid 78 cents for gas. Last summer, it hit as high as $3.20. Oil cost $38 per barrel. Today, it's closer to $70. Then, the oil shortage was political. Today, it's physical — supply just can't meet higher demand.

Then, the weak dollar still bought more than the dollar today. And our only real economic competitor was Japan. Now we’ve got China, India, the euro... and a resurgence in Japan.

Brace yourself. Because while this might spell doom for most Wall Street stocks, it virtually guarantees a global resurgence for resource investments, silver and especially gold. Protect your wealth and grow your riches with the cutting-edge resource recommendations in Outstanding Investments.

Read on for more details...

If There's a Crossroads on
the Way to Catastrophe... This Is It!

Here's the third chart I promised you.

And though you might not know it at first glance, this one is a doozy...

This is what's called a "yield-curve inversion."

The one you're looking at above first happened on Dec. 28, 2005... And stayed that way for several months.

It inverted again on July 31, 2006... and stayed that way until May 2007. That's a 41-week yield-curve inversion — the third longest out of nine inversions since 1962.

Maybe that sounds like econo-gibberish to you.

But this is bad. How bad?

Think dynamite and a tripwire.

See, normally, a yield-curve inversion should be an extremely rare event. But here's the thing. Over the last 46 years, six out of seven recessions happened an average of 10.3 months after a yield curve inversion. Only once, in 1966, did the yield curve indicator "get it wrong." Even then, only massive government spending cuts helped prevent disaster. And there was still a massive slowdown.

This is so precise an indicator of recession, in fact, one study published by the New York Federal Reserve pegged it as a better measure of what will happen to the U.S. economy than the U.S. stock market or any other general index of other leading indicators.

Translation: When the curve flips, we'd better listen.

Right now, as I write, we're 20 months out from the beginning of the last inversion. And Bernanke is trying desperately to prevent another inversion by slashing interest rates to the bare-bones minimum.

But he's trapped between a rock and a hard place.

See, slashing the rates further means an even bigger dollar collapse than what we've already suffered. And even higher credit debt at a time when most Americans can least afford it. It also means losing the last shred of overseas confidence in the U.S. economy. And that alone could spark a whole new wave of disaster.

When all those overseas bondholders out there see the United States disintegrating its economic base, that's all she wrote! They'll start dumping the dollar and our debt investments with abandon. I'm sure you're smart enough to see where this is headed...

That kind of unraveling is the perfect recipe for $2,000 gold. Which is why I want to make sure you're in a good strong position before this next radical power move in gold unfolds...

Epic Boom Opportunity #2:
"MORE GOLD THAN FORT KNOX..."
AND THE WORLD'S EASIEST 94% GAIN

This next move is easily one of the best ways anybody can double their money in 2008. You rarely see something this close to a pure play.

At the center is a town so tiny it may as well be at the end of the world. And what, just seven years ago, used to be one of the tiniest junior mining companies in the industry.

Today, both are suddenly sitting on what could be $27 billion worth of unprocessed gold — "That's like finding more gold than the government stores in Fort Knox all in one location," says one of my smartest investment research colleagues.

Nobody imagined it was down there.

At best, they all thought, they've got just 7 million ounces.

Not only were they wrong, but suddenly this junior miner doesn't look so "junior" anymore. Because it now owns one of the largest single gold deposits in the world, with as much as 33 million ounces underground.

Thanks to a partnership with one of the world's largest senior mining companies, this once-undiscovered firm can get that gold out of the ground for about $233 per ounce.

At today's gold prices, that's pure profit of as much as $700 or more.

Here's what's truly incredible...

The $40 Billion Treasure Wall Street Forgot

This same firm has another 13 billion pounds of copper tucked underground, just south of the border of the Yukon, deep in the north of British Columbia.

Until recently, it cost too much in water and electricity to get that copper out of the ground. And that knocked the wind out of this firm's share price when investors figured costs would spiral out of control.

I don't know if you've paid attention, but copper demand — and prices — have exploded in recent months. That's completely changed the equation.

One of the massive gold miners — I can't say which one, because it would give away too much — offered $16 per share just to buy this company and its options on these two mineral-rich properties outright.

If it just made that offer again, without any other changes in the company's outlook, you'd be talking an instant 94% gain in the shares just since the start of this year.

That alone is enough to nearly double every dollar invested.

Before the end of 2008.