Editor’s note from Michael Checkan: There is an opportunity today in the precious metals market that should not be overlooked. We have spoken about this anomaly which has taken place very few times in history. Some of you have taken advantage of it and already benefited. But, if you have not done so, I urge you not to be left out.
I am so convinced that your bottom line requires this infusion of growth that I have asked Steve Sjuggerud, Editor of True Wealth, to reveal the story about this precious metal that could double your money by 2013. I am sure you know of his incredible track record.
I called on Steve, one of the most respected editors of any financial newsletter, because his calls are proven. I want you to consider his input as a testimonial to the accuracy of our past BUY suggestions on this metal. Read the below and contact us at 1-877-340-0790. Do you agree that it's just too painful to look back on a great opportunity and wonder what stopped you? If you do, contact us, now and avoid the regret.
By Steve Sjuggerud
As some of you know, I’m bullish on a precious metal very few folks are talking about these days… but which you’ll probably recognize when I say its name. Some people call it “Rich Man’s Gold,” because it typically costs more than gold on an ounce per dollar basis.
Over the next year or so, I expect this metal to double or more… And over the long run, I expect it could climb even higher.
Millions of years ago, meteorites filled with this metal crashed into what are now the alluvial sands of rivers in Africa and the Ural Mountains.
Because this metal is much rarer than other metals – and hard to extract – it wasn’t found until about 500 years ago.
In 1557, an Italian humanist writer by the name of Julius Caesar Scaliger gave one of the first descriptions of it when he called it a noble metal “which no fire nor any Spanish artifice has yet been able to liquefy.”
Its rarity prompted King Louis XV of France to declare it the only metal fit for a king.
In the 19th century, it was used as a currency by the Royal Mint of Russia in the 1820s and in Spain, where it was even used to counterfeit gold coins at one point in the 1860s…
The Royal Canadian Mint used this metal as legal tender in the 1980s…
But because supplies are so hard to come by, widespread use as a standard for currency is simply not feasible. But as a store of economic value, it’s more valuable than gold.
To give you some idea of how challenging it is to get your hands on this stuff:
- Throughout history, the total amount of this metal ever mined on this planet would fit into a basement of less than 25 cubic feet.
- The world only produces about 130 tons of it ever year. That’s less than 5% of gold production and less than 1% of silver production.
- It takes 6 months and ten tons of ore to extract just one ounce of Rich Man’s Gold.
- According to a retired international banker and U.S. Treasury advisor, it occurs at, “only 0.003 parts per billion (ppb) in the Earth's crust. This makes it the most precious of all precious metals - about 30 times rarer than gold.”
It’s the “rarest of the precious metals…” said the head of the Bullion Management Group.
Since there’s so little “Rich Man’s Gold” in the earth’s crust… and it requires a lot of time and money to extract from ore… it’s already difficult to get this stuff above ground.
What makes matters worse – or better, really, for owners of it – is supplies of this metal exist in volatile places like Russia and Africa – where strikes and politics often get in the way of production.
In other words, supply is extremely limited.
To top it off… several powerful forces are converging right now to create huge demand for this metal…
"Many people do not know how valuable it is."
For starters, China – the world’s future richest country – loves Rich Man’s Gold. They like to hoard it, wear it, and use it in their many rising industries. The name for this metal in Chinese even has the word “gold” in it.
"I like it because it is worth more than gold and because it is still exclusive," said one Chinese businessman. "Many people do not know how valuable it is."
As the Financial Times pointed out recently, it’s “more valuable than gold.”
And China is, by far, the largest consumer.
At the Shanghai Gold Exchange – China’s main precious metals bourse – sales of Rich Man’s Gold have been astounding. This past fall, trading hit an all-time high.
According to traders there, the imports of this metal doubled in a year to 251.8-kilo ounces. In just a 3-day period that August, sales spiked 703%. What’s happening is whenever the price drops a little, traders in China are loading up.
They’re loading up because they know this metal will soar over the next year or so… and likely continue that trajectory over the next 10-15 years as well.
The Chinese Government is investing too. As I mentioned, supplies of this metal are limited to a couple hotspots in the world. China invested $877 million in one of them, including a mine that’s expected to begin production in 2015.
Bottom line, this is not a passing fad for the Chinese. They want this precious metal – they want it bad. And they’re spending a lot of money to secure it into the future.
And they’re not the only ones…
JP Morgan, America’s largest bank, is loading up its vaults with 50 ounce bars—roughly $76 million worth. There’s no way of knowing who this is for – a hedge fund, clients, or the bank itself. But the point is someone is buying.
Several other “primary dealers” of the Federal Reserve – banks in charge of facilitating Fed monetary policy – have been quietly loading up on this precious metal in their house accounts.
Jefferies-Bache (formerly Prudential) bought $5 million worth for the house account. Deutsche Bank bought three times as much for their house account. The Merrill Lynch division of Bank of America recently took delivery of over $6 million in its house account.
Again, we don’t know who exactly these shipments are ultimately for – we simply see the data through the New York Mercantile Exchange – just who has been receiving these quantities.
Why do these folks want it so bad? Why the demand?
There are several reasons…
A Temporary Anomaly in the Precious Metals Market
By now, you may have guessed I’m talking about platinum.
Some folks think it’s just for wedding bands and jewelry… but that couldn’t be more wrong.
China, big banks, smart investors… they all want platinum right now – and for good reason.
First off, let’s consider one of the biggest reasons people buy precious metals – as a hedge against inflation.
When the Fed inflates our currency, they dilute the value of what you hold in dollars. Prices ultimately rise, and you don’t have the same buying power. That’s why people buy gold, silver and platinum. They rise in reaction to the inflation taking place. These metals don’t suddenly become more intrinsically valuable. They simply preserve the value of the dollars you hold that would otherwise be watered down in value.
Platinum is perhaps the best of the three metals as a hedge. According to a study by Boston-based Wainwright Economics, platinum is more sensitive to inflation – and is a better leading indicator than either gold or silver. We saw this at the beginning of the century. Platinum began rising in 1999, while gold and silver began their climb in 2001.
Here’s another reason some folks may want platinum right now…
By now, everyone has probably heard about the Government’s confiscation of gold in 1933. The banks were having real liquidity problems back then (much like today)… so FDR ordered citizens to turn in their gold for dollars. That way there would be more cash in the banks, rather than stored in gold sitting on the sidelines.
But most people don’t realize one year later, the Government – through Executive Order 6814 (the Silver Purchase Act of 1934) – outlawed the ownership of silver bullion too. Our coinage at the time contained silver… and it was still allowed for some industrial uses. But FDR demanded that all persons owning silver turn it in and exchange it for dollars within a 90-day period.
What happened to gold and silver has never happened to platinum. That’s not to say it couldn’t… or that the Government would never intervene again… but recent history provides a powerful precedent.
There’s another reason these big players may like platinum so much (and it’s the best reason if you ask me)…
How to Double Your Money by 2013
One of the best reasons to own platinum is it could make you a lot of money over the next year…
You see, platinum is typically more expensive than gold. They’re both stunning to look at, useful… and great stores of value. But platinum is 30-times more rare. And almost always trades at a significant premium to gold.
For instance, in January 2001, gold traded around $260. Platinum cost over $600—more than two times as expensive.
Four years later – in January 2005 – gold traded around $420 an ounce. Platinum traded around $845. I’m not cherry picking dates either. For most of the 21st century, platinum has traded at a 100% premium to gold.
What’s happening is a temporary anomaly. Platinum should catch up and rocket even higher than gold in the months ahead.
In fact… when I first wrote about this opportunity in January, platinum was about two hundred bucks cheaper. In late March, as our dealer continued to track down the rest of the coins, platinum was only $20-$30 cheaper. It’s catching up, fast. By the time you’re reading this, who knows… maybe platinum will already be more expensive.
The last time this type of anomaly occurred was in 2008. If you’d been smart enough to buy when platinum fell below gold, you could have doubled your money in 18 months. I believe this is going to happen again.
And let me quickly tell you another reason why…
Unlike gold, platinum is as much an industrial metal as it is a precious metal. While gold has some industrial uses, most carmakers use platinum. Every car in the world needs a catalytic converter to breakdown hydrocarbons… and platinum is by far the best auto-oxidizing agent, because of its high melting point and interactions with sulfur compounds. That’s why most catalytic converters in the world have 1-2 grams of platinum.
Last year, the car markets in China and the U.S. both grew. China sold 18 million cars. The U.S. sold 12 million… despite recessions on both continents.
That’s a whole lot of platinum… especially considering its scarcity. And some people expect car sales to grow even more this year… like car market analyst Klaus Paur, who expects the global car market to grow 10 to 12 per cent this year.
It’s a shame there’s so little platinum in the world because it may be the most valuable metal on the planet.
It’s used to make high quality optical glass, liquid crystal displays for TV’s and computers, data storage…
Without platinum, gasoline refineries would not be able to create the higher-octane components of gasoline…
And here’s another truly amazing application of platinum, in my mind:
Platinum – in certain chemical forms – has the ability to inhibit the division of living cells. In fact, platinum-based drugs have had an effect on testicular, head, neck and ovarian cancers. There’s one drug on the market today and one currently in trials.
I could go on and on about this super-metal, but you get the point…
It’s beautiful, highly useful, one of the scarcest metals on the planet, and in HUGE demand…
This year, according to a report by the bank HSBC, there could be a 163,000-ounce deficit.
Bottom line, we’re looking at an opportunity to pick up the rarest of all precious metals at a great price…
You now know the full story of platinum, the noble metal. To make a purchase, simply call an ASI Preferred Customer Representative at (877) 339-9377. The ASI Representative will outline the ways for you to buy and store platinum inside and outside the U.S.A. Don't let this opportunity pass you by again.
P.S. Aside from the obvious opportunity in platinum, something else should be very clear after reading the comments of Dr. Steve Sjuggerud. Steve does his homework. In fact, I know how much Steve Sjuggerud spends annually on research to find these opportunities for you.
To get Steve’s research and insights working for you, simply click here to subscribe… but only after you call us and pick up some cheap platinum.