Six-Month Review: Gold Up 45%; Silver Up 63%

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The last six months have wiped out 12% of the value of the S&P 500, and shaved a full 18% off the NASDAQ...

The last six months have wiped out 12% of the value of the S&P 500, and shaved a full 18% off the NASDAQ. During this same time period, gold increased by 45% and silver by 63% (as of 2/27 at 2:00 am PST). Yes, those are 6-month returns, not annualized figures. At the risk of being painted as an “alarmist,” I would like to point out that if the next six months don’t get any better, the S&P will post a 23% annual decline, and the NASDAQ will drop 33%. If you include a 10% inflation factor, the average investor could stand to lose 30-40% of their net worth in just 12 months. If real estate makes up any part of their portfolio, they could lose over half of their net worth by August of 2008. Ouch!

These numbers are nothing to scoff at. The economy is extremely unfit, and in many ways, the conditions are worse than those that precluded the Great Depression. The coming economic collapse will likely bring a great deal of suffering to millions of Americans who have grown up spoiled by the benefits that come with a strong manufacturing base, easy credit and a printing press for the world’s reserve currency. Times are changing...

If you are to weather this storm, protect your wealth and even profit during the next few years, you should consider going short the stock market, and long precious metals and energy. Jason Hamlin, www.GoldStockBull.com

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