The 3 Best Ways to Invest in GOLD

A Special Report from Casey Research

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GOLD

A special report by Jeff Clark, Editor of

BIG GOLD

? 2011 Casey Research

Casey Research

BIG GOLD - Special Report

Welcome to Casey Research!

We're glad you've joined us in what we believe is the bull market of a lifetime.

It might surprise you to hear that we're not recommending investing in gold because we're gold bugs. We do it because gold is the safest way to protect yourself from failing economies and out-of-control governments... and because it's the best way to profit from fundamental factors working in your favor.

Why Should You Invest in Gold?

Let's call the global crisis what it is: the worst financial collapse since 1929. Housing prices are down 25% from their bubble peak in 2006, and we believe the end of the decline is still not in sight. While worldwide stock markets have recovered some of their 2008 losses, few investors are confident that a lasting recovery is here to stay. Unemployment continues to rise in most developed countries.

Governments the world over are debasing their currencies by lowering interest rates, and many have resorted to "quantitative easing," a fancy term that means nothing more than printing money. In the U.S., the number of dollars in circulation has tripled since 2008, while worldwide, the M2 ? one measure of money supply ? is up in all G7 countries. Tomorrow's inflation is already baked in the cake.

And while the cry to cut government spending gets louder, the deficit and debt continue to grow. The official deficit for 2011 is estimated at $1.6 trillion, although in reality it's almost $2 trillion. Total U.S. debt at the end of 2011 is estimated at $18 trillion.

How has gold responded to all of this? Between January 2007 and January 2011, gold rose 121%, while the S&P 500 fell 11% in the same period.

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Casey Research

BIG GOLD - Special Report

Returns: Gold and Silver Lead All Comers

And for 2010, you can easily see how gold has outperformed other major investment categories in the chart above. Gold's long-term picture is even more dramatic. Between January of 2000, when the price of gold bottomed at $282.05 an ounce, and January 2011, gold rose 402% in value. Over the same period the S&P, adjusted for inflation, lost 26.7%.

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Casey Research

BIG GOLD - Special Report

Gold and Silver vs. Other Securities in the Past Decade

Is It Too Late to Invest in Gold?

No! While gold has had a good run, our research shows that what's ahead will be, quite frankly, spectacular. By positioning yourself now, you'll be in ahead of the crowd ? and will profit tremendously as the greater masses rush in.

A Think about this: the fourfold increase we've seen in the gold price has happened during a period of no price inflation to speak of ? no effects of the atrocious increase in the money supply. Imagine what will happen to the price of gold when serious inflation kicks in, as it certainly will. Investors will stampede to gold as never before.

Here, specifically, is why we think it's not too late:

1. Gold is an inflation hedge. As the Fed continues cranking up the printing presses, flooding the economy with paper money, and as national debt skyrockets at unprecedented rates, there is no question that sooner or later (we think sooner), inflation will come roaring back with a vengeance.

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Casey Research

BIG GOLD - Special Report

There's no doubt that the current administration and Federal Reserve are committed to printing enough money that the dollar will continue to be devalued. After all, it's the only legitimate way for them to ever be able to repay their debts. And gold is the #1 way to protect yourself from the inflationary results of their actions.

2. Gold is a dollar hedge. Mounting pressure on the dollar from negative real interest rates and debasing from all the government bailouts, debts, and money printing are all conspiring to push the dollar to historic lows. The chart below shows the sorry fall of the dollar in just the 12 months between May 2010 and May 2011.

Dollar Index

May 2010 to May 2011

Gold has moved higher against the U.S. dollar every year since 2000, and it's done even better against euros, Swiss francs, Canadian dollars, or British pounds. That's a solid, unbroken, global bull market.

A Think about this: Unlike paper money, which has lost 96% of its purchasing power since the inception of the Federal Reserve in 1913, gold's purchasing power has essentially stayed the same.

Imagine that in 1930, when the average monthly wage was $165 and gold sold for $21 an ounce, you had hidden a one-ounce coin under your mattress. Back then, that coin would have bought you a good-quality suit. And let's say your neighbor stashed the same amount of money away ? $21 in one-dollar bills. Fast forward to today: that one ounce of gold will still buy you a nice suit. Your neighbor, on the other hand, would have a hard time buying even a pair of socks for his money.

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