I began publishing my monthly newsletter The Bob Livingston Letter™ (subscription required) in 1969. When I wrote this article in April 2006 for the May 2006 issue, I had been preparing my readers for months for a gold breakout. It happened in March of 2006. The following appeared in the May 2006 issue. From its $583 price point when I wrote this, gold did just as I expected. It corrected in until September, providing an outstanding buying opportunity, then zoomed to $1,869.90 by September 2011, meaning readers who took my advice more than tripled their money. Meanwhile, the dollar index lost 15 points and the Dow rode a roller coaster up and then down, ending the period about where it started. Oh, and we still have not reached the point where the crowd is getting gold fever even 10 years later. Gold is still a buy for me. Recent dips only provide more buying opportunities. And the advice in the last half of this column is as valid today as it was 10 years ago.
Well, on March 30 (2006) we had a new gold breakout! I didn’t really expect that until August or September, but this demonstrates how strong this bull market is. Apparently I have not been gold bullish enough.
My friends, there is no precedent for the current supply/demand imbalance in precious metals and industrial metals. This is an investor’s dream where supply inelasticity meets rising demand. I hope that all of you can profit from this historic gold bull market.
Where are we now? After an explosive rise, I expect a correction and consolidation until August or September, and then a Fall 2006 rally. Remember that I told you to expect corrections and some scary corrections. Bull markets climb a wall of worry and many of you worry that gold and silver are already too high.
Tell you what, get a couple of gold coins and go down the street. Show them to anybody. Ask them if they own any gold or if they have ever seen any gold.
Not more than one in a hundred will say yes to either question. This should tell you that we are still early in this gold bull market.
When you see the crowd getting gold fever, it’s time to exit. But that’s way down the road. This is a more dangerous world than I have seen in 60 years because there is more deception.
Street people are deceived… the “educated” are deceived… and the professional class is just as deceived. Perhaps the fascist moguls of industry and some politicians and government bureaucrats know what’s happening. Most of them don’t.
The seeds of inflation have been sewn. The Fed has been creating money at a sustained annual rate of ONE TRILLION DOLLARS, EVEN AS IT HAS TRIED TO COVER THIS FACT UP WITH A SERIES OF TRIVIAL RATE HIKES and cutting the public off from its M3 indicator.
If we are alert, this can mean only one thing. Our assets and savings denominated in U.S. dollars are evaporating. What’s worse is we cannot rely on government and its politicians to tell the truth. Rather we can rely on them to lie and withhold the truth. I cannot find anybody but you readers of this Letter who understand this. And I know exactly why!
They are not reading the right material or enough of it. The people who don’t read trust the system the most and will lose the most.
If one does not read, nothing outside his parameters of thought will be credible. This
Letter is meaningless to people who do not have at least some background to understand it.
If you are ready to receive the information in this Letter, you should be rewarded 10,000 fold plus the health benefits to enjoy it. If you are too busy to read, you are too busy and the price is extremely high. You just wouldn’t believe how high.
The next time you read The Bob Livingston Letter™, I will have read four to six books and hundreds of pages of reports and research.
Come join me and I promise you a whole new world of prosperity and health.