The Abundance Engineer March 2011 - Gold, Silver & Oil

Dear Investors, 

Silver & Gold  

Silver reached a record 30 year high last week amid rising tension in the Middle East. Gold reached an all time high of $1433 as the paper price caught up with physical demand in Asia. Both metals have fallen off slightly in the last few days and it may be a good time to accumulate.  

The month of February saw record insider selling in the U.S. stock markets. Insiders sold a total of $5.4 billion and bought $128 million of stock in the month, a 41.6x ratio. Full Story...  

   

"If the world gets better you're gonna make a lot of money in commodities. If the world economy doesn't get better you should own commodities because then Governments are going to print more money." - Jim Rogers  

  

One of the most important criteria I use for stock selection is Insider Trading.

Tony Hayward CEO of BP cashed in about a third of his holding in BP one month before a well on the Deepwater Horizon rig burst, causing an environmental disaster. Goldman Sachs liquidated their shares in BP at the same time. Coincidence. Yeah right. 

The money that Bernake is printing is going straight into the stock market and the Insiders are selling. We are midway through a commodity bull cycle why would anyone invest in stocks.   

The Chinese appetite is voracious. Overnight, UBS confirmed in a Bloomberg article that China alone imported a massive 200 metric tonnes of gold in just the first two months of 2011. This gold is being bought by China's 1.3 billion people in order to protect against surging inflation.   

  

The FT last week quoted a senior executive of the world's largest bank by market capitalisation Industrial and Commercial Bank of China Ltd. (ICBC) about the "voracious" appetite for gold in China. ICBC bank has in some two months opened gold savings accounts for more than 1 million savers with more than 12 tons of gold stored on their behalf.

Shopping malls in China are experiencing massive buying of gold jewellery and ingots as shoppers buy gold as a store of wealth in order to protect against surging food and energy inflation. Statistics from Beijing Caibai, Beijing's largest jewellry store, show sales of gold bars and jewellry have totaled an incredible 4 billion yuan or about $600 million US dollars so far this year, a 70-percent increase year-on-year.

Bernake states inflation is under control. I love the way Bernake makes up these figures. Hilarious it's like watching a comedy show. Bernake should come out next time in a clown suit so we can all laugh along with his jokes.    

Meanwhile the Chinese are advising that inflation is real and that people should buy Gold & Silver. They been advising their people to buy Gold & Silver for 12 months now.

Ways to Invest in Silver & Gold

You can buy Physical Metals and store them at home or in our secure storage facility.

You can open up an online investment account. ETrade would be my number one choice and trade your own account. 

You can spread bet Silver & Gold using marketspreads.ie. John McGlade has offered to run a free introductory class on Spread betting. If anyone is interested email me and I'll set it up. I spread bet some short term commodities. The returns I achieve are comparable to options trading and are tax free.   

Energy 

The Saudi stock market fell another 6% on Tuesday and 2 Saudi tanks were sent to quell protests in Bahrain. If unrest does spread to other Oil producing nations such as Iran, Saudi Arabia, Nigeria, Angola & Venezuela. We will see a big spike in oil prices and big movement of money into Gold & Silver.  

"Iran's security forces have been deployed to the streets on Tuesday ahead of a planed opposition rally calling for lifting house arrests imposed on opposition leaders, an opposition website reported. "A large number of security forces have been stationed at main streets and some squares of Tehran since noon to prevent gathering of opposition supporters," said the Sahamnews website.

Green power now becomes a tangible investment. There are some excellent companies which will thrive in the high oil price environment. Our Energy fund which includes oil, natural gas, solar, wind & geothermal will be an excellent way to capitalize on this. Contact me for more info.    

Our oil investments are up over 100% in the last few weeks I know some of you who capitalized on this move too. Well done.   

Agriculture

DBA- Powershares DB Agriculture Fund is up 15% already this year and 50% since last July when I recommended buying agriculture.

Pensions 

I spoke to a number of people about their pensions in the last few weeks. 

If you do not know what your pension is invested in I suggest you have a good look, or we can take a look for you and outline the range of options available.   

There are some great commodity funds that you could have your pension in. There are also some great guaranteed return income yielding investments and bonds. 

Email or call for more info on:  

Happy investing,

Robert McManus
The Abundance Engineer

Email: rob@theabundanceengineer.com
Web: www.theabundanceengineer.com