47 YEARS EXPERIENCE IN GOLD INVESTMENTS!

If you’d like to deal with someone who has been personally invested in gold holdings for 47 years, this is the site! The owner of Golden Eagle Enterprises, Inc., Mr. Jack Weber, bought his first St. Gaudens Double Eagle gold coin in 1960. He began helping others invest into gold in 1966, after he came to the realization that God made gold, not Federal Reserve Notes.

When Harry Browne (Libertarian Party presidential candidate and author of the N.Y. Times bestsellers: “How to Profit From the Coming Devaluation – 1970 and “You Can Profit From A Monetary Crisis” – 1974) noted Mr. Weber’s expertise in gold, he encouraged his readers to contact him. Thousands did and benefited immensely when Mr. Weber sold them out of their gold investments in January 1980, when gold was over $700/oz.

Mr. Weber has participated in the daily trading of gold for over 37 years. He works alone, so you will pay no salesmen’s commissions if you chose to deal with him and his markup on coins is about half what other national firms charge. If you have a question that no one else has been able to answer, feel free to email him (button) and he will reply to you as quickly as possible. Otherwise, Mr. Weber assumes you have the necessary background to make the important decision to invest into gold coins. If not, read “WHY GOLD?”

THE CURRENT GOLD BULL MARKET The bottom of a 20-year decline in gold occurred in July 1999 at $250, and a new gold bull market was confirmed in March 2001 at $255. (Click here for long-term chart) If you’d like to benefit from the coming multi-year rise in the price of gold, contact Golden Eagle Enterprises, Inc. at their email address: jack@goldeneagleenterprises.net

June 2010 Newsletter

2001 – Gold = $250/oz
2007 – Gold = $750/oz
2008 – Gold = $1,033/oz
2009 – Gold = $884/oz
2010 – Gold = $1,123/oz (Jan.)
2010 – Gold = $1,250/oz (May)
2011 – Gold = $3,000/oz ?????

Dear Clients and Other Friends:

The Cassandra principle: “Gifted to see what is bound to happen, but cursed in that few will listen.”

While I don’t claim to be “gifted” (and those who really know me know that I’m not), I am “cursed” because so few have listened to what I’ve been “preaching” for the past 44 years.  During these many years since 1966 when I began encouraging clients to buy gold, I’ve been immensely blessed by the literally hundreds of fine folks who have benefitted from my advice.  However, those folks are a very small minority of people with whom I’ve been in contact, and many of you who are reading this newsletter are among that group.  For the love of God, I BEG you to heed the advice of this letter and get some gold and silver.  Whether you get them from me or not is immaterial, but PLEASE – get your savings out of worthless paper assets!!!

NO GOLDEN FLEECE AND NO SILVER BULLETS
Peter Souleles B. Com. LLB. - 4 March 2010

“The U.S. is no doubt still a very powerful nation. At the same time however it is facing a challenging set of economic headwinds which threaten to lead to a chaotic unwinding of the financial system not only within the nation but also worldwide. There are many angles from which to examine this erosion. In this brief essay it is my intention to briefly focus on the demise of the U.S.'s financial position by comparing the gold and silver holdings of the USA between 1940 and 2010. The comparisons are as startling as they are devastating.

“In 1940 the United States Treasury held 19,543 tonnes of gold in its Treasury, 183,514 tonnes of silver (1942) in its strategic stockpile and had a population of 132,164,569 people. It had therefore 4.753oz of gold and 44.641oz of silver per person.

“In 2010 the United States Treasury now has only 8135 tonnes of gold, virtually no silver and a population of approximately 307,212,123 people. This equates to only 0.8513 oz of gold per US inhabitant.”

THE GOLD BULL MARKET HAS NOT YET BEGUN
Peter Souleles B. Com. LLB. - 16 April 2010

“Every single thinking investor knows that all the stimulus and support packages given to banks, consumers, motor vehicles, home owners, student loans, etc. will in the end turn out to be support packages for gold when collapse imposes itself.  So while these government sponsored relief packages delay the inevitable, they nevertheless silently build up the price of gold. The explosion is coming and it will blow up anybody holding paper currency for anything more than daily exchange purposes.

Matterhorn Asset Management AG - 18 May 2010 by Egon von Greyerz

“Yes this is it! We have crossed the Rubicon and events in the world economy are now likely to unfold in a totally uncontrollable fashion. Clueless governments still don't understand that it is their ruinous actions that have created a credit infested and bankrupt world. They will continue to prescribe the same remedy that caused the problem in the first place, namely more credit and more printed money. The consequences are clear; we will have hyperinflation, economic and human misery, as well as social unrest.

“The latest EU and IMF package of $ 1 TRILLION (Euro 750 billion) is yet another futile attempt by governments to abolish poverty by printing paper. Let's be absolutely clear, this money does not exist and the EU governments are hoping that by declaring such a large amount that they can con the Wolfpack speculators. At this point the EU has just picked a large round figure of out the air. But when their bluff is called by the Wolfpack and the next attack happens, EU governments will, after initial huffing and puffing, start printing unlimited amounts of paper.

“So the world is now on its road to ruin and there is no action, no leader and no new amount of printed money that can save the world or prevent a hyperinflationary depression.

“Never in history has the world been in a situation when virtually all industrialized countries are bankrupt. Therefore there is no precedent for what will happen in the next few years. What we can be quite certain about is that events will happen in a seemingly random pattern and that it will be impossible to forecast where the next crises will start.

“Greece is bankrupt but is still taking on additional EU loans of € 140 billion. In addition, their austerity measures are supposed to bring the deficit down from 12% of GDP today to 3% in a few years time. But who can be so stupid as to lend to a bankrupt nation which will sink into the Ionian and Aegean Seas in the next few years. With massive cuts in government expenditure, with major falls in output, with unemployment rising fast, with tax revenues collapsing, how can Greece possibly be expected to improve the economy and pay a high interest rate on their exploding debt? In addition, as long as they have the Euro they will be totally uncompetitive. So if they couldn't manage their economy in the so called good times, it is absolutely guaranteed that they have no chance of surviving in bad times. So Greece will default and so will Portugal, Spain, Italy, France, the UK, the US and many more. But before that there will be the most colossal worldwide money printing exercise which would have used up most of the trees in the world but for electronic fiat money.

The world must permanently readjust --

“Most governments still believe that deficit spending and money printing is the solution to all their problems. Because the world economy's expansion in the last 100 years and particularly in the last 40 years has been primarily based on credit and not real growth, governments live under the false impression that money printing will work this time too. But we have reached the point when investors will no longer buy worthless government debt that will never be repaid with real money. We will first go through a period when governments issue and buy their own debt thus monetizing the debt or print money (it’s already happening in the US). This will be the hyperinflationary phase. Thereafter the world will realize that none of the government debt and very little of the bank debt will ever be repaid. Credit will then implode and so will also the assets financed by credit. Eventually there will be a new monetary and financial system and the world will start afresh. The adjustment period will be very long and will involve economic and human misery, leading to social unrest and major political change. It will be a horrible experience for the world during this extended period of adjustment. But it will be like a forest fire that clears out the deadwood and creates the conditions for strong new growth. Once the new era starts it will therefore be from a very much lower level and individuals will be rewarded for hard work with little or no social security. Credit will only be granted for sound capital investment projects, not for consumption or speculation. Ethical and moral values will return and the golden calf will not be worshipped. But before that, the period of readjustment will be very long and extremely difficult for the whole world.

Hyperinflation Ahead!!!!!!!!!!

“For several years we have predicted that hyperinflation is the most likely outcome of the economic predicament that the world is in. But it is unlikely to be a straightforward hyperinflationary period. Precious metals will be the primary beneficiaries of hyperinflation.

“Hyperinflation will destroy many currencies so paper money will definitely reach its intrinsic value which is

Zero!

“Gold and silver will virtually be the only assets that will protect investors fully against the destruction of money.”

(emphasis added)

The Next Leg of the Debt Crisis is Here

“In our February newsletter "Sovereign Alchemy will Fail" we discussed the Sovereign Time Bomb and we are now experiencing the initial small explosions with Greece as the first victim. The $1 trillion EU/IMF rescue package was never intended to be more than a headline figure. EU governments were hoping that this would frighten the Wolfpack away. But so far this has failed. The Euro went up 4 cents when the package was announced but is now down to new lows again. How can anyone take a massive rescue package seriously when most of the countries making the commitments are bankrupt themselves? Spain and Italy have committed tens of billions each. And they are the ones that will be attacked by the Wolfpack next. This is the bankrupt saving the bankrupt. The IMF has no money but is dependent on its members of which the US is the biggest contributor. And the US is bankrupt too. The UK, which is not in the Euro Zone and which has a worse budget deficit than Greece, contributed £15 billion. The new UK government is planning to cut a massive £ 6 billion of costs out of its next year's budget which will bring major hardship. But as a last act, the outgoing labour government committed £15 billion, which if paid out will never be repaid. The whole thing is a total farce. Governments commit trillions to rescue banks and sovereign states but cannot even make budget cuts of a few billion in their own countries. This shows that the world economy and the world financial system is being run by morons who only have their own self interest in mind and do not understand the consequences of their ruinous actions. (That they may be “morons” may be the best case scenario.  I suspect it is much worse.)
“When the $1 trillion EU rescue package was announced, the US simultaneously offered European banks dollar Swap facilities (dollar loans) of a minimum $500 billion but probably much more. In addition the US Fed also injected at least $500 billion into the US banking system. These actions make it clear the banking system is under tremendous strain similar to 2008. But this is just the beginning. Things will get a lot worse.

Gold !!!!!!!!!!!!!!!!!!!!!!!!!!!!

“In 2002 we advised investors to put up to 50% of their liquid assets into gold when the price was $300. To us it was crystal clear that the mountain of debts and derivatives would never be repaid with normal money but would be inflated away by money printing and this is what is now happening. The media are now talking about a bubble in gold and comparing to the 1980 top at $850. Let us be very clear, although gold has gone up  5 times since the 1999 bottom at $250, it is nowhere near its peak. Adjusted for real inflation (as per shadowstats.com) the 1980 gold peak in today's prices corresponds to around $7,200 today. So gold could easily go up 6 times from the current price of $1,220 and still be within normal parameters.

“There are many factors that will contribute to gold's rise from here (in addition to money printing):

• Gold production is going down.
• Neither Comex (the futures exchange), nor the bullion banks would be able to deliver more than a fraction of the physical gold for which they have outstanding commitments.
• Central banks and the IMF probably don't hold even half of the 30,000 tons that they claim they have. Most likely, at least 15,000 tons (6 years gold production) have been sold to suppress the gold price.
• The precarious financial system will lead to a total distrust of paper gold including most of the ETFs which have no physical gold.

“The four factors above will lead to the most massive surge in the gold price. There will be nowhere near sufficient gold to satisfy demand at current prices. We had been expecting gold to start its acceleration in March 2010 and this is exactly what is happening. We expect the move to be relentless during most of this year with very few major corrections but with high volatility. Moves of $100 in one day could easily happen.
“So gold is likely to make a top in the next few years between $5,000 and $10,000. But if we get hyperinflation the price could go exponentially higher like in the Weimar Republic when gold reached DM 100 trillion per ounce in 1923. Will gold experience the same type of correction when is has peaked as happened after the 1980 peak? Probably not, because gold is likely to be a part of a new monetary system that will be created when the current one has collapsed.

“The table below illustrates the total destruction of paper money against gold in the last 100 years and shows how many ounces of gold that $1,000 bought at various times. In 1910, $1,000 bought 40 oz of gold at $25 per oz. Today in 2010, $1,000 buys 0.80 oz of gold at $1,230 per oz. This is a massive decline of 98% in the value of the dollar measured in real terms in the last 100 years. The next significant year is 1971 when Nixon abolished the convertibility of dollars to gold. It was this disastrous decision that opened the floodgates for the credit and money creation that we are experiencing currently. The dollar is down 97% since then. But even if we take more recent years, the purchasing power of the dollar measured in gold has declined catastrophically. Since the 1999 gold low, the dollar has declined by 80% against gold and since 2002 (when Matterhorn Asset Management recommended major gold investments) by 76%. 

“Virtually all currencies show similar declines in value against gold in the last 100 years. This is the clearest evidence of governments and central banks defrauding their people of their hard earned money. Where will it end?  It will end when the dollar and many other currencies reach their intrinsic (real) value of ZERO. That time is not far away.”

And friend, if you think these terminal events have come about by accident, I encourage you to reconsider.  It is my firm conviction that there are world forces (and IMO, they are satanic) who are engaged in a diabolical plan to destroy your financial and physical welfare.  If you do nothing (by keeping your hard earned savings in their “money” system, i.e. unbacked paper currencies, you are going to lose it all!  As you can see from the articles I’ve presented above, there are several (and these are just the most important of many more) highly respected market analysts who agree with me.  My strongest advice to you is GET THE VAST MAJORITY OF YOUR SAVINGS (bank savings, T-bills, CD’s. etc.) OUT OF PAPER AND INTO TANGIBLE GOODS LIKE -- FOOD, GOLD,  SILVER,  LEAD & $2,000 in $10 bills!!!!!!!!!!!!!!!!!!!!!!

Cordially,
Jack Weber

PS This newsletter is not copyrighted so feel free to make copies and give them to anyone about whom you have a financial concern.  Also, if your pantry isn’t full, I’d suggest you fill it. Trucking is becoming a problem.

In 1928 George Bernard Shaw said: “If you have to choose between trusting the natural stability of gold and the natural stability and intelligence of the members of the government, with all due respect to those gentlemen, I advise you, vote for gold.”

Reggie Middleton is an investor and analyst who owns BoomBustBlog.com.  He was one of the earliest to warn of the impending downfall of Lehman Brothers and Bear Stearns.  Middleton told me, “If the FDIC had more money and manpower, it would be closing a lot more banks.”  Middleton also said, “Many of America’s 8,000 banks are insolvent or close to it because of mark to market accounting.”  Because of accounting rule changes, banks are allowed to value toxic assets for whatever they think they are worth, not what they actually are worth.  Some call this “mark to fantasy accounting.”   Middleton warns, “There is more risk now (in the banking system) than during the Lehman crisis because the pool of banks is smaller.”  

If you haven’t read Titus 2: 13 lately, now might be a good time.  Life without God is like an unsharpened pencil – it has no point.

What is better than:
Money in the bank? Stocks? Bonds? Mutual Funds? A 401k? An IRA?
Even gold mining stocks? Gold ETFs? Gold Futures? Gold Options?