DailyWealth Print Edition Print Edition | Also Visit S&A Investment Research & Growth Stock Wire

These Gold and Silver Investments are Going to Soar...
By Tom Dyson
April 22, 2008

The buying power of the dollar is collapsing. I received these statistics from David Hall and Van Simmons this weekend...

Item
Date
Price
Price Today
Inflation Rate
Gallon of Gas
1963
29 cents
$3.49
5.7%
Three-bedroom house in Santa Ana, CA
1960
$14,000
$580,000
8%
New Cadillac
early 1960s
$2,400
$42,000 (mid-range STS)
6.4%
New Volkswagen
early 1960s;
$950
$18,500 (Beetle)
6.7%
New Chevrolet
early 1960s
$1,500
$22,000 (Chevy Equinox)
6%
Pack of Baseball Cards
1960
5 cents
99 cents

6.4%

Movie Ticket and popcorn
1960
35 cents
$15.50
5.7%
Oil
1961-1970
$1.80
$115

6.4%

McDonald's hamburger
1963
15 cents
89 cents
4%
Loaf of Wonder Bread
1964
29 cents
$2.89
5.3%
Taco at Taco Bell
1965
19 cents
99 cents
3.9%
Beatles Album
1965
$2.99
$14
3.6%
Hot Dog
1965
15 cents
$1.51
5.5%
Box of Cheerios
1965
39 cents
$4.39
5.5%
CPI
1960
$1
$7.21
4.2%
Average
5.5%

The average inflation rate of these basic items over the last four decades or so has been 5.5%. Let's look at some more recent examples...

---------- Advertisement ----------
"America's New Currency" Could Make 425% gains in 2008

4 U.S. depository banks are now issuing a "New Currency" to a select group of Americans.

Backed by real assets around the globe, this unique investment has generated gains as high as 750% over the last 18 months, while stocks have plummeted.

Click here for the full report.
-------------------------------------

"Three years ago, a 20-ounce Diet Coke from the vending machine in our company's lunchroom was 90 cents," writes David Hall. "Today, after three price increases from the vendor in three years, it's $1.25, a 45% increase in just three years."

"I have a friend who lives in Las Vegas. He's a mathematical. He likes to keep track of prices at the grocery store. A year ago, a gallon of milk at his grocery store was $2.99. Today, same store and same brand of milk, that gallon costs $4.17. He likes McCormick Black Ground Pepper. A year ago, a container of the pepper was $2.99. He ran out of pepper a week ago and bought a replacement, same size container, same brand, and same store. The price... $6.99!"

These stories are compelling. They point to an acceleration of inflation. I can't prove this acceleration, but with all the money the government is printing to pay for Iraq, to refund taxes, and to bail out Wall Street, it makes sense inflation would accelerate. 

These statistics remind me why I love investing in rare American coins. I wrote about the Morgan Dollar last week in DailyWealth. Today a Morgan Dollar costs $170. In 1985, these coins were selling for $1,000 each. It's the same way with all rare coins. Take a mint condition Saint Gaudens $20 gold coin from the 1920s. In the mid 1980s, it sold for $5,000 each. Today you can get these coins for $2,000.

While all other goods inflate, rare coins have deflated. It doesn't make sense. Unlike a loaf of bread or a pack of baseball cards, there's no way to increase supply of these coins... at any price. They haven't been produced since 1933. When you buy these coins, you buy a piece of American history. And they are beautiful, too... like little pieces of art. You'd think they would have kept pace with inflation better than gasoline. 

I think there's a huge opportunity to profit here. As gold and silver keep rising, people are going to realize the advantages of owning physical gold and silver. Beauty and history aside, they are portable, liquid, and you can buy and sell them with cash.

Related Articles

How to Get an 83% Discount on a Rare Silver Coin

You Would Make 250% Gains... So Why Won't You Do It?

Sooner or later, the rare coin market is going to attract the attention of investors. They're going to find supplies are incredibly tight and the prices of these coins are going to shoot back up to their historical records.

If I'm wrong... and there isn't any inflation... well how can you lose money buying a rare Morgan Dollar for $170?

Good investing,

Tom

Email a Friend

Delicious
Reddit

Digg

RSS

THE STUNNING COLLAPSE OF CHINA'S STOCK MARKET

We didn't expect it to get this bad this quickly...

In our November 13 edition, we sounded the alarm on the Chinese stock market. Around this time, newspapers were filled with stories of novice Chinese investors opening brokerage accounts by the hundreds of thousands. China stocks had tripled in a year's time and carried enormous valuations.

We singled out China's largest air carrier, China Southern as a stock likely to take a beating as air seeped out of the bubble. The stock is down 43% since that column. What's truly incredible, however, is that China's version of the Dow has been cut in half in just six months. This is where it starts to get interesting...

Just as our bearish interest in China was piqued in November, our bullish interest in China has been piqued here in April. Below is a two-year chart of China's stock market. This is a chart that shows mass pessimism and devastating losses. This chart makes a contrarian stand up and take notice.

Chinese stocks could fall another 50% from here. But let's not forget... the current rise of China is one of the greatest growth stories in the world. A big uptrend after this washout is inevitable. China is back on our watch list.

Brazil iShares

China, India, Russia and the Middle East for the first time will consume more crude oil than the U.S., burning 20.67 million barrels a day this year, an increase of 4.4 percent, according to the International Energy Agency in Paris. U.S. demand will contract 2 percent to 20.38 million barrels daily, the IEA says.

Economic growth of more than 8 percent in China and India, coupled with increasing car ownership among the countries' combined populations of 2.45 billion people, will more than compensate for falling U.S. demand.

Oil use worldwide will increase 2 percent this year because of growth in emerging markets, the Paris-based IEA says.

Bloomberg

Automakers issued ambitious forecasts Sunday of up to 65 percent sales growth in China's booming market this year – a striking contrast to the gloom in the United States and elsewhere.

Sales of some individual models to newly prosperous Chinese drivers soared by up to 100 percent in the first quarter over the same period of 2007, said executives speaking at the Beijing auto show.

Toyota Motor Corp. expects to sell 700,000 vehicles in China this year, up 40 percent from 2007, executive Yuzo Ushiyama said.

Daimler AG said Mercedes-Benz sales in China rose 42 percent in the first quarter. That included a 110 percent jump in sales of the R-class minivan.

– AP

BANNED ON WALL ST.

Dr. George Huang - a PhD trader and former VC - has uncovered a small subsection of the financial markets offering tremendous returns - and which Wall Street CANNOT touch.

According to Dr. Huang's 8-year back-testing study, this small group of 69 companies outperformed the NASDAQ 6-to-1 over an 18 month period.

For more information, click here.

DailyWealth is Dr. Steve Sjuggerud's FREE daily e-Letter

To receive Steve's best investment ideas each month, try a no-risk trial subscription to his monthly advisory, True Wealth.

Get started now.

Why Ethanol Policies Are a Scam
By Jeff Clark


The Gift of Capital Efficiency
By Porter Stansberry


Just Hit The Ground in Tokyo
By Dr. Steve Sjuggerud


China's Automobile Craze
By Tom Dyson


Turn $4,000 into $750,000
By Dr. Steve Sjuggerud

Does the Stock Market Owe You $4,900?

If you own stocks, there's a chance the market owes you as much as $4,900.

The thing is, if you're like most folks, you'll probably never collect it. For the simple reason that you don't know how.

But at S&A Research, we just learned about a little-known strategy that allows you to draw every last penny – in cash – in 24 hours or less.

Click here for the full details.

How to Get an 83% Discount on a Rare Silver Coin
April 21, 2008


How You Turn $100,000 into $5 Million
April 19, 2008

Get Ready for 566% Gains or More
April 18, 2008


The Key to Making Money in Oil Stocks This Year...
April 17, 2008


How to Make 14% Dividends from Small Businesses
April 16, 2008

Home | About DailyWealth | Premium Content | DailyWealth Archive | Contributors
DailyWealth Resources | Research Reports | Privacy Policy

Customer Service: 1-888-261-2693 – Copyright 2008 Stansberry & Associates Investment Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry & Associates Investment Research, LLC. 1217 Saint Paul Street, Baltimore MD 21202