Gold

I began publishing my monthly newsletter The Bob Livingston Letter™ (subscription required) in 1969. The following appeared in the January 2003 issue. I recognized that gold was coming off a bear market that had lasted more than 20 years and I was advising readers to buy gold and gold stocks and prepare for a dollar collapse. In December 2002, as I was writing this, gold stood at $320/oz. and the dollar index was at 109. The gold bull market run that had just started finally topped at $1,869.90 in September 2011. The dollar index collapsed to 80 in July 2011. Even though the collapse didn’t lead us back to a gold standard, readers who followed my advice still made out like bandits. This is the type of timely advice available only to readers of the BLL.

We have discussed gold over the years.

In the last three years, we have advised you to begin accumulating gold coins (in your possession) and gold stocks. Now, many of you have substantial profits.

Any new bull market begins in total doubt. The more negative sentiment becomes, the closer the time for a new bull to blast off.

Gold has been in a 22-year bear market. A whole generation has grown up without a gold bull market.

Now is the time for gold. The world credit/debt system is collapsing. The monetary authorities are creating massive amounts of new money trying to avoid economic collapse and deflation. In their madness they are destroying the currency and the savings and assets of the American people.

If indeed the Federal Reserve at some future time is able to reinflate the economy, gold ownership will be the only way to preserve assets. Right now, gold is for security in a monetary crisis. But the time is near when it will be for survival.

On December 19, 2002 Alan Greenspan mentioned gold for the first time as chairman of the Federal Reserve. It is interesting that Greenspan conceded that under the gold standard, the US dollar retained its purchasing power for over 200 years.

My prediction: The US dollar will collapse as a direct result of an avalanche of printing press money. The dollar could go down to 70 cents on the currency exchange and then to restore confidence there will be some form of a gold-backed dollar. It will have to happen somewhere in the future.

When a national currency is destroyed and the economy collapses, the only recourse is gold.

The point is, gold will have to be at a much higher price to back the US dollar.

Those who hold gold will greatly benefit.

If you have gold buy more while it’s cheap. If you don’t have any gold, start buying now. You can buy American Eagles from 1/10 oz. size up to one oz. Buy a

mixture. Gold is forever! Paper money is always destroyed by its greedy creators.

The major trend now is switching from financial assets to tangible assets.

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