Outstanding Investments In 2011

Over the next two years, you'll witness the greatest surge in gold prices in market history — at least 78% above where gold sits today as I write.

I'm so convinced, I'll even make you a guarantee.

More on that guarantee in just a second.

But even better, I've just discovered a way for you to sneak into the soaring gold market for next to nothing with what I call "penny-per-ounce" gold.

That is, doing this is a "backdoor" way to owning as much of a position in gold as you like... for the equivalent of paying a single cent per ounce.

There's no alchemy involved. And no trick.

It's just a gold market "loophole" most investors know nothing about.

I'll show you how it works here in this letter.

It's no skin off my nose if you opt not to do this. I'd just hate to see you miss out. And even if you decide it's not for you, you'll still want to know about the astounding silver stock I'll name for you. You can pick it up right now for a 40% discount to what it should be worth on Wall Street... plus, in this same letter, I'll show you the best way to play gold using the powerful new efficiency of gold-backed exchange-traded funds (ETFs)... not to mention the single best gold stock to own right now and possibly for the next several years, if you choose to own only one.

Here's the clincher...

I'm going to give you all four of these recommendations... and all the information you need to act on them... FREE.

The symbols, the buy and sell targets, and specific step-by-step instructions on what to do. No charge.

Why would I do that? You'll see.

But first, let's dig in and get started...

Epic Boom Opportunity #1: HOW TO SNAP UP RAW GOLD... AT JUST 1 PENNY PER OUNCE!

What if just before the biggest gold price surge in recent history, you could get your hands on a large stash of the yellow metal... for less than one penny per ounce?

There's no alchemy involved. No secret technology. And no smoke and mirrors. But a small upstart new mining company is doing exactly that.
Its technique is simple.

But it's just about the only company across the entire mining industry that's able to do this right now.

In 2005, it mined about 100,000 ounces this way. For 2006, it quadrupled that haul, using this same technique. In 2007, it became a million-ounce producer. Now it's on track to double that production... with at least 19 million ounces of gold still in the ground.

The math is simple...

Four Times Your Money Even if Gold Prices Don't Budge Another Inch

Think about it.

Anybody who can get gold out of the ground for a penny...

And sell it for even $1,000 per ounce or $1,100 per ounce stands to make a handsome return. And so do their shareholders.

What I'll show you here is gold hitting as high as $1,200... $1,500... or even $2,000 per ounce... over the next 12–24 months.

Owning shares of this company could mean at least a 400% gain in that time period, even if only half of what we're calling for comes through.

So here's how this works.

For most miners, getting gold out of the ground is done in pretty much the same way across the industry. But not for this wily little company I've been telling you about.

What it's done is invent a way to mine the gold — and rich veins of raw copper — at the same time.

The copper mining is so lucrative the profits more than cover the cost of pulling the gold out of the same hole. And that means close to 100% upside potential on the gold, no matter the current spot price on the market.

Any way you slice it, it's booking massive profits.

At Least 2 Years of Locked-in Value, No Matter How High Gold Actually Soars

Right now, this "little" undiscovered, new mining company already has ten mines up and running. Plus four more projects heading into development.

It also has enormous land holdings with lots of undisclosed mineral potential. Plus, it just swallowed whole another holding with as much as 2 million more ounces of gold in the ground.

Add that to proven and probable reserves of 19 million ounces... plus another 27 million ounces that are either "inferred" or "measured and indicated."

Sounds rich?

Don't forget, I haven't even said anything yet about the nearly 3.4 billion pounds of copper tucked under this company's territory. And copper is the key to this whole secret.

Because it's the steady flow of cash from the copper — remember, this company has innovated a way to get both the copper and gold out of the ground at the same time — that's making the gold production, in relative terms, possible for less than one penny per ounce.

Here's the best part...

This little company's savvy management had the foresight to hedge the entire copper reserve by making deals that locked in its copper sales at record levels for essentially the next two years.

So even though the global economy keeled over and copper prices fell, this company  keeps on raking it in on its copper discoveries... which means it keeps on getting the gold out of the ground for next to nothing at the same time.

Did I mention?

This company has no debt. It's also sitting on a massive pile of cash. And that pile just keeps getting bigger. This is partly why the stock not only has huge upward potential, but it also pays a dividend.

This is a powder keg waiting to pop. With gold prices creeping higher... and then accelerating... this isn't going to stay off mainstream radars for long. You'll need to make a move on this soon.

I want you to have everything you need to make the call, as educated about the pros and cons of this as possible.

So I've commissioned the best experts on my team of analysts to write it up in a FREE special report I want to send you. It's called Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!

I'd like to get this into your hands as soon as possible. At no charge. Inside, you'll find out everything you'd want to know about "penny-per-ounce" gold. You'll also discover even more brilliant and innovative new ways to get in on the sudden new surge in the yellow metal, inside this same free report.

But maybe you're already asking yourself...

Why Gold and Why Now?

Before I rush you that FREE report, let me ask you this...

Do you remember the last time gold sold for over $2,000 per ounce?

Of course you do. Maybe you didn't think of that way. But actually, gold has already sold for more than $2,000 per ounce. Let me show you.

First, you have to think for a moment as if it's 1971. Gold is selling for $35. This is the year Nixon breaks it from ties to the dollar. Gold prices start climbing. By 1975, it's hit $196. And by 1980, we're talking $850. Sure, you say, that I remember.

But maybe you also remember back then you could also make $27,700 per year and it was a pretty decent living. About as good as making $100,000 per year today.

You could also buy a house for $50,000 then and, just on an inflation basis, it would be worth $250,000 today. And back then, you could retire on $270,000 in savings... and it would be as good today as being a millionaire.

So you can see, trying to compare yesterday's gold price to today's — on an even basis — is like trying to compare apples and armadillos!

Take a look at this chart...

In today's dollars, 1975 gold at $196 is more like $775 in the current market. And 1980 gold, the peak year at the historical price of $850, would now clock in closer to $2,199. And remember, this is what you get using only the most conservative market calculation of gold's worth. There are other, even more telling ways to value gold. Try this on for size...

$38,349 per Ounce!

Remember, for a good part of America's history, every dollar in your pocket was a dollar backed by gold. So it's not so crazy to ask yourself... if America has 8,180 tons — nearly 261.7 million ounces — of gold in reserve... how many dollars does that buy?

The answer will shock you.

When dollars became unhinged from gold, the printing presses at the Fed cranked up. By 1980, for every ounce of gold in America, the financial system carried $6,966 in cash. That's $1.8 trillion total. But get this — by the end of 2005, the total real money supply shot to over $10 trillion.

That's $38,349 in circulation for every ounce of gold in reserve!

Of course, it's even higher now. The printing presses are cranking faster than ever in 2010. Only now, it's much harder for you to know how fat the actual money supply has gotten. See, by March 23, 2006... the number had gotten so embarrassing... the Fed actually "retired" a number, "M3," which was the most broad-reaching measure of how much cash floats around in the system.

Yep. Instead of fixing the problem, the politicians just stopped talking about it. Is that any surprise? Fortunately, you don't need Washington's help to get the real picture of what's happening today in the economy... or to find out what's next for the price of gold.

Because you can just read on and see for yourself...

Precious Metals Megatrend: 3 Charts and the Truth

I'm about to show you three charts.

Take a look at these first two side by side...  

A hundred different snapshots could show you the mess we're in. Soaring personal and government debt. A plunging savings rate. Record-high mortgages as a percentage of GDP. Plunging yields on 10-year Treasuries. Soaring but "hidden" unfunded government liabilities, to the tune of $53 trillion...

But none show it better — and more plainly — than these two charts I'm showing you right here, above. The first is our skyrocketing money supply. The second is our plummeting purchasing power. That's about as plain as you need to get.

How so?

Because this is the starkest vision you'll ever get of the absolute carnage that's piling up in a "secret war" Washington's fighting right now... and has fought, unsuccessfully, for the last 20-plus years. No, not the war in Iraq. Or Afghanistan. Or even some possible future conflict with Iran.

This is another kind of war... right here at home.

The enemy is a dark nemesis — a dead and stagnant economy. And the Fed secretly fights to hold it off desperately every single day. This is a worse enemy than recession. It's the enemy called deflation, an economy in which nothing moves and nobody buys a thing.

The weapon of choice in this ongoing secret war is flooding the market with cash and easy credit. Because regular cash and credit injections make everyone feel rich. The theory goes, when you've got cash and low-priced credit, companies borrow and expand. Consumers borrow and spend. Families borrow and buy homes.

This is why, since 1950, the total amount of money in circulation has soared well over 3,000%! And it's all good... or seems good... until it goes all wrong.

See, the trouble is even money can't escape the natural law of supply and demand. When there's too much of it floating around, each dollar is worth that much less relative to the whole. Suddenly, you've got price inflation.

Suddenly, every dollar you have in the bank is worth less.

Hemingway called it the "first panacea of a mismanaged nation."

And in our case, it's helped plummet the purchasing power of our dollars by a mind-blowing 96%. The dollar's worth today is just pennies compared with what it bought a century ago. In fact, its worth is just a fraction now — as we just demonstrated — compared with the last time gold prices boomed, in the 1970s and early 1980s.

Only now, unlike then, the "wiggle room" we have left now between us and a complete dollar implosion is so thin it's practically transparent. Could total implosion actually happen? Absolutely.

Take what Fed Chairman Ben Bernanke famously said in a speech at the National Economists Club in Washington, in November 2002:

Like gold, U.S. dollars have value only to the extent that they are strictly limited in supply. But the U.S. government has a technology called a printing press (or, today, its electronic equivalent) that allows it to produce as many U.S. dollars as it wishes at essentially no cost... We conclude that under a paper money system, a determined government can always generate higher spending and, hence, positive inflation.

In other words, if you want to juice an economy... turn on the printing presses and make it as easy as all get-out to borrow money at a low, low rate of interest. Bernanke and others in the Fed think that's no problem. They think they can handle it.

But a brilliant and famous colleague of mine — someone I'll introduce you to in just a second — completely disagrees. Flooding the market with easy money, he recently told me in private, is more like burning your furniture to keep warm. It cannot last as a stopgap measure. It's courting disaster.

He and I both like to think an even smarter economist, Ludwig von Mises, got it right instead, when he said:

There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of the voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.

See, thanks to all that Fed-driven loose credit, consumer debt has soared. It's never been higher. In 1987, when Alan Greenspan first took his job in Washington, consumers were in the hole by about $10 trillion. Where are they now? An unbelievable $37.3 trillion in the red — or nearly 350% of GDP!

Think about that.

As a whole, Americans owe 3½ times more than the entire U.S. economy — the largest in history — produces in a year. If you or I owed that much on a personal level, we'd be suicidal.

Meanwhile, the government doesn't seem to worry. It spends money even faster. It borrows even deeper. Even the Bush administration, with full knowledge of the implications of a credit disaster, borrowed more money from 2000–2008 than every White House since the time of Washington!

The Obama administration stepped on the gas even harder — smashing all previous records and bringing us a $1.4 trillion deficit. Plus another $1.5 trillion in 2010. And $9 trillion total over the next decade.

Doesn't that sound to you like we're at a turning point?

If There's a Crossroads on the Way to Catastrophe... This Is It!

Here's the third chart I promised you.

And though you might not know it at first glance, this one is a doozy...

This is what's called a "yield-curve inversion."

The one you're looking at above first happened on Dec. 28, 2005... And stayed that way for several months.

It inverted again on July 31, 2006... and stayed that way until May 2007. That's a 41-week yield-curve inversion — the third longest out of nine inversions since 1962.

Maybe that sounds like econo-gibberish to you.

But this is bad. How bad?

Think dynamite and a tripwire.

See, normally, a yield-curve inversion should be an extremely rare event. But here's the thing. Over the last 46 years, six out of seven recessions happened an average of 10.3 months after a yield curve inversion. Only once, in 1966, did the yield curve indicator "get it wrong." Even then, only massive government spending cuts helped prevent disaster. And there was still a massive slowdown.

This is so precise an indicator of recession, in fact, one study published by the New York Federal Reserve pegged it as a better measure of what will happen to the U.S. economy than the U.S. stock market or any other general index of other leading indicators.

Translation: When the curve flips, we'd better listen.

Sure enough, the U.S. economy went into recession in December 2007. 

And Bernanke is trying desperately to prevent another inversion by slashing interest rates to the bare-bones minimum.

But he's trapped between a rock and a hard place.

See, slashing the rates further means an even bigger dollar collapse than what we've already suffered. And even higher credit debt at a time when most Americans can least afford it. It also means losing the last shred of overseas confidence in the U.S. economy. And that alone could spark a whole new wave of disaster.

When all those overseas bondholders out there see the United States disintegrating its economic base, that's all she wrote! They'll start dumping the dollar and our debt investments with abandon. I'm sure you're smart enough to see where this is headed...

That kind of unraveling is the perfect recipe for $2,000 gold. Which is why I want to make sure you're in a good strong position before this next radical power move in gold unfolds...

Epic Boom Opportunity #2: "MORE GOLD THAN FORT KNOX..." AND THE WORLD'S EASIEST 94% GAIN

This next move is easily one of the best ways anybody can double their money in 2010. You rarely see something this close to a pure play.

At the center is a town so tiny it may as well be at the end of the world. And what, just seven years ago, used to be one of the tiniest junior mining companies in the industry.

Today, both are suddenly sitting on what could be $27 billion worth of unprocessed gold — "That's like finding more gold than the government stores in Fort Knox all in one location," says one of my smartest investment research colleagues.

Nobody imagined it was down there.

At best, they all thought, they've got just 7 million ounces.

Not only were they wrong, but suddenly this junior miner doesn't look so "junior" anymore. Because it now owns one of the largest single gold deposits in the world, with as much as 33 million ounces underground.

Thanks to a partnership with one of the world's largest senior mining companies, this once-undiscovered firm can get that gold out of the ground for about $233 per ounce.

At today's gold prices, that's pure profit of as much as $890 or more.

Here's what's truly incredible...

The $40 Billion Treasure Wall Street Forgot

This same firm has another 13 billion pounds of copper tucked underground, just south of the border of the Yukon, deep in the north of British Columbia.

Until recently, it cost too much in water and electricity to get that copper out of the ground. And that knocked the wind out of this firm's share price when investors figured costs would spiral out of control.

One of the massive gold miners — I can't say which one, because it would give away too much — offered $16 per share just to buy this company and its options on these two mineral-rich properties outright.

If it just made that offer again, without any other changes in the company's outlook, you'd be talking an instant 94% gain in the shares just since the start of this year.

That alone is enough to nearly double every dollar invested.

Before the end of 2010.

But feel free to expect a much bigger move, especially as those 33 million ounces of gold and 13 billion pounds of copper come online.

While you can't wait too long on this second move, you can still read the full story for yourself before you decide. It's all in the FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! that I want to send.

All I need is your permission to put it in the mail... or you can download it yourself, five minutes from now, from a link I'll give you at the end of this letter.

But before I show you how...

Allow Me to Come Clean: Why I'm in Love... With Gold

My name is Addison Wiggin.

I'm sure you've guessed gold is more than a "fad" investing idea for me.

I've followed these market forces behind the yellow metal for years. I've even written about it, in a New York Times best-seller that maybe you've read, Financial Reckoning Day.

I wrote about these forces again in a second New York Times best-seller, Empire of Debt. And again in a quick little book, also a best-seller, The Demise of the Dollar.

This is not, in short, new territory for me.

I've hit the radio circuit to talk about this, too, appearing on over 350 local and national interview shows. Maybe you've also seen me talking it up on television, from ABC News and Forbes on Fox to Bloomberg Television.

I'm also the co-writer and executive producer of the financial documentary, I.O.U.S.A., nominated for Sundance's Grand Jury Prize.

And at least part of that documentary shares even deeper proof of all the reasons I'm giving you here about why a major move into gold will be essential for growing and safeguarding your wealth over the years ahead.

I don't say this to brag. I just want you to be clear that this isn't coming from out of the blue. In fact, I also head a multimillion-dollar international research organization that's very much focused right now on exactly the same opportunities we've just talked about.

And really, that's why I'm writing to you today.

See, finding and assembling the world's best experts in this field is what I do. It's my life's calling. I've been at this for the last 15 years. And in that time, nothing has made me more proud than what we've managed to do with one of those ventures, a powerful, major force in the resource advisory industry, called Outstanding Investments.

Maybe you've heard of it...

As I said, I couldn't be more proud...

Mark Hulbert, the no-nonsense industry watchdog, ranked Outstanding Investments as the No. 1 performing investment advisory letter over a five-year period in 2005. In 2006, he put us among his top-ranked performers yet again. And one more time in 2007.

And it's no wonder. Especially with the winners you could have found in Outstanding Investments over these last several years...

Like the 332% we logged on Glamis/Francisco Gold... 668% gains on Metallica Resources... 249% gains on Coeur d'Alene Mines... 83% gains on Placer Dome... 191% already on Newmont... and 480% gains already on American Century Global Gold...

Plus plenty of nongold gains, too.

Like 137% on KeyWest Energy... 174% on PetroChina... 270% gains on the July 2005 silver call options... 160% gains on Western Oil Sands... and 179% gains on Talisman Energy...

One of the biggest reasons for our success is the string of brilliant analysts we've been able to entice on board to lead Outstanding Investments readers to that top-performance position.

Maybe you've already heard of our current top analyst, Byron King.

When it comes to gold and other metals, oil, gas, energy — even the politics and trends that move resource markets — there's a good chance nobody is as qualified as Byron.

See, unlike most market analysts, Byron actually has in-the-field experience.

He's even what you might call a "rockhound."

Byron's a geologist with a degree from Harvard.

After graduating with honors in the 1970s, he broke into the oil industry. Byron worked as a geologist in the exploration and production division of a major oil company — one of the Fortune Top 20.

When he got tired of that, he did what no other analyst would do — and joined the U.S. Navy, logging over 1,000 hours flying Navy bombers as a tailhook aviator... including more than 127 death-defying carrier landings.

(Ask your broker if he has that on his resume!)

Not one to sit still, after leaving the Navy, Byron worked as a practicing attorney in Pennsylvania for 17 years, during which time he became one of the most sought-after resource experts in the country.

He's been invited to give speeches across the U.S. and Canada, he's written countless articles for major publications, and he's been interviewed by even more, from small-town journals to national newspapers like The Globe and Mail and the Los Angeles Times.

Byron once even met with M. King Hubbert himself, the genius who discovered the Peak Oil crisis that would plague world petroleum... 20 years before it actually happened. Again, that's not a claim your average energy market analyst can make.

You couldn't ask for a better pedigree.

What's Byron Saying Right Now?

Byron and I are both pretty excited about the future of most commodities. But we're very excited, right now, by the future of gold.

In your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!, you can see what Byron and his Outstanding Investments team are recommending right now to readers.

Just give me permission to send you a copy.

And then I'll ask you to do something for me. With your permission, I'll ask you to let me also start sending you — at no risk to you — up to a full year of FREE issues of Outstanding Investments, too.

Inside those issues, you'll read about all kinds of ways to make money — not just on gold, but on surging new alternative energy investments, oil and gas, corn, sugar, soybeans and the China-driven resource boom... plus plenty more.

All FREE for up to a full year. You can find all the details at the end of this letter. The thing is, however, Byron and his readers are already moving on these opportunities I'm telling you about. So time is of the essence.

Let me at least rush you a FREE copy of this groundbreaking report, Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!... so you can look over these simple recommendations and see for yourself.

All five picks are geared for 2010 and beyond. And you'll find all the information you need on each of them packed into the report. Which is, as I've said, yours free just as soon as you tell me you're ready. Just follow the steps at the end of this letter.

But don't wait too long.

If only because the pressure behind gold prices just keeps increasing by the hour. For instance, take a look at this...

Precious Metals Megatrend: China's Secret Endgame

Fan Gang, director of China's National Economic Research Institute, stood in front of a standing-room-only crowd at the World Economic Forum in Davos, Switzerland.

In halting English, he said:

The U.S. dollar is no longer, in our opinion, a stable currency. It is devaluating all the time, and that's [making] troubles all the time. So the real issue is how to change the regime from a U.S. dollar pegging to a more manageable reference, say, euros, yen... those kinds of more diversified systems...

And it's not just China. Malaysia is also shifting from the dollar. So is Indonesia. And Thailand. And possibly Japan. But who could blame them?

China and Japan alone own about $906 billion of the $1.1 trillion of U.S. Treasuries held overseas.

But a weak dollar is a wasting asset. To the Chinese, it's starting to look like a giant pile of liabilities. Yu Yongding, who sits on the Chinese central bank's monetary policy committee, told the China Securities Journal he was worried America would drop interest rates in 2006, putting pressure on the dollar and the yuan.

"More seriously," he said, "China's economy would take a big hit if the U.S. dollar weakened sharply due to such factors as a bursting of the U.S. property bubble. The loss for China's foreign exchange reserves would be extremely serious."

They won't hang on for long.

Publicly, the talk is of China moving more of its currency reserves away from the dollar and to the euro. And that might happen. But the euro is only paper too, backed by its own debt problems at home.

The real story is China quietly converting those dollars into... you guessed it... GOLD.

China recently cashed in about 2.4% of its dollar reserves to buy gold. It has a better track record than the dollar. In fact, gold has a better track record — historically — than any paper currency.

And even more recently —  on April 24, 2009 —  China announced it had steadily grown its gold reserves by 76% since 2003.  

On Dec. 28, 2005 — the same day as the first in a series of recent U.S. yield curve inversions that we just talked about, an economist at China's biggest brokerage firm, China Galaxy Securities, quietly hinted China's central bank should quadruple its gold reserves in the very near future.

Japan's central bank has also talked about cranking up its gold reserves. So have the central banks of South Africa, Argentina and Russia. In November 2005, Russia said it would hike up its gold reserves from 5% of total financial reserves to 10%.

That's double what it's already holding now.

To get it, Russia would have to absorb its own entire gold output for the next three years. That's a long time for the rest of the world to go without Russian gold production.

Any more whispers on the news about this and the China gold reserve hike could send gold prices skyrocketing overnight. You'll want to be ready to profit on this surge as soon as you can.

Here's another way most investors will miss...

Epic Boom Opportunity #3: THE "BLUE CHIP" GOLD MINING SHARE NOBODY'S TALKING ABOUT

When gold takes off, major "blue chip" gold producers like Newmont, Barrick and AngloGold grab lots of headlines. But there's another of the top 10 producers that's not getting nearly as much attention — yet.

Now is your chance to grab it before soaring gold prices push it higher.

This company owns one of the five largest inventories of gold deposits. Plus, it owns nine operating mines in five different countries, including the U.S., Canada, Brazil, Chile and even Russia.

But here's where it has its biggest "undiscovered" edge.

This major miner has three very promising projects in development that could easily up its output to levels 60% above where they are right now. That's a lot of new gold. And coming online over the next two years.

What's more, this company does it all with an extremely tight rein on costs, with profit margins running an impressive 18%.

And by the way, this company is also one of a few beneficiaries of a 131-year-old federal law that literally gives it the U.S. land it mines and all the deposits underneath for only $10 per acre.

That's given this company more mineral-rich land holdings than 99.5% of its competitors. At the same time, this company trades for $174 of market capitalization per ounce of gold reserves, which is one of the lowest premiums among major mining companies.

Call it "cheap gold."

Especially considering what you would have to pay for those other major gold stocks I mentioned.

It's no wonder this one company recently attracted some of the top talent from every corner of the industry. It's also no wonder that more than 57% of this company's shares are in the clutches of institutional investors.

And that trend is only going to speed up, given the top-quality deals and acquisitions this company has already cooked up, which should send its total gold production soaring even faster over the next three years.

You can read all about this "undiscovered" mining major, along with all the other opportunities we've already talked about, in your free copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!

Here's something else you'll find inside...

Epic Boom Opportunity #4: THE SAFEST WAY TO OWN GOLD

What's the safest way to own gold today?

It has to be the new gold-backed exchange-traded funds (ETFs).

These did not exist two decades ago, the first time legal gold investing in the United States set the markets on fire. And now they've completely revolutionized the market for gold, in more ways than one.

The way they work? You buy shares, just like you would in a mutual fund. Each share is as good as holding a title to real gold. When you put money in, the gold ETF buys physical metal and stores it to back your shares.

As if you had the gold itself in your own safety deposit box. Only the ETF saves you the trouble of ever storing, transporting or insuring the metal.

I recommended my Outstanding Investments readers get in the more liquid of the two main gold ETFs on the market. And I've got some recommendations to share with you on how to get started on this yourself, in your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!

But here's something you might not know about ETFs.

By cracking open the gold market to more marginal metal investors, all the fundamentals of gold investing have changed forever.

Suddenly, pension funds, young investors and retirees who want to dabble in metals can do so. More easily than they ever could before. But all these millions of dollars in new electronic gold transactions have to be backed — by law — with real gold.

So the success of the gold ETF is a self-fulfilling prophecy.

The more investors it attracts, the more gold it buys. That cranks up pressure on the rest of the gold market. And gold prices tick higher, making the ETF look even more attractive all over again.

Take the ETF we have recommended in our Outstanding Investments portfolio.

It first came out in October 2004 with a float of about $200 million worth of gold holdings in its portfolio. In the first year, the total float ballooned to $1 billion worth of bullion.

Now it's over $45 billion!

That's $45 billion worth of physical gold that has to come off the market, just to back the fund's investors. The bigger that fund gets, the higher the gold price rises. And around we go.

If you don't own a chunk of this ETF, now would be a good time to get in.

Meanwhile, we're tracking another gold fund right now — not an ETF — that you should also own. Since it was first added to our Outstanding Investments portfolio, it's already up 165%. But you can still get in now and watch it go still higher. In one recent year, this select fund soared 81.2% in less than 12 months.

Buying it now may be the simplest and safest way for you to take up positions in all the biggest gold shares — like Newmont, Barrick and Agnico-Eagle — without paying commissions on all those separate trades.

Plus, this particular fund also takes a stake in physical gold. So this is a way for you to safely take a position in bullion too.

Read all about it in upcoming issues of Outstanding Investments. But be sure first to send for your FREE copy of the report Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead!

I can drop this report into the mail for you immediately. Or you can download it for yourself right now, just by following the steps at the end of this letter. No charge.

But first, here's something else most investors don't know about...

Precious Metals Megatrend: The Hidden Cost of Terror

The Milken Institute did a study that estimated the short- and long-term costs of Sept. 11.

Outside of the loss of human life, the immediate hit was about $53 billion. In the weeks that followed, another $47 billion disappeared thanks to lost economic output in the U.S. economy. Plus another $1.7 trillion that disappeared from the U.S. stock market.

Then the costs REALLY started to add up...

Airlines and aerospace, tourism and travel, hotels and motels, restaurants, the Postal Service and the insurance industry all suffered. Just in the first month, at least 125,000 people lost their jobs. Another 1.6 million jobs evaporated over the next year. And businesses retooling for the new "terror economy" had to spend an extra $151 billion.

This is when what's called the cost of distortion comes into play — the ripple effect from a shock event like this can cause people to behave in strange ways for a long time to come.

Think about it.

Governments wasting billions they otherwise couldn't have, because every new security bill gets passed. Nations fighting battles they otherwise wouldn't have, because every conflict suddenly looks connected to the war on terror. Individuals and businesses not spending money in ways they otherwise would have, because they're afraid to take the risk.

Air travel falls. Tourism falls. Trade suffers and foreign investment dries up. In 2002, 29 ports on the U.S. West Coast shut down for two weeks. Two hundred ships, carrying over 300,000 shipment containers, just sat in the water.

Waiting.

Rail cars and warehouses all over the country waited too. Along with freezers and grain elevators and companies that had to shut down their production lines. More jobs disappeared. And the added insurance costs against security shutdowns tacked on another $30 billion to the cost of doing business in America.

You might remember pundits having plenty to say about how we recovered so quickly from the attacks. Yet new estimates put the uncovered costs, so far... at close to $2 trillion!

And remember, this is only one event we're talking about.

You and your family pay roughly $450 extra every year in taxes to cover the cost of a bloated Homeland Security agency. The same agency, by the way, whose air marshals have been caught sleeping on planes... and that holds up flights with huge security lines... and whose airport inspectors still let weapons and even dummy explosives slip through security.

You can never know how much a "war on terror" will cost.

Because fighting terrorism is like fighting a hurricane. You can see it forming on the radar screen. You know when it's headed your way. But you don't know what to expect when it lands. Or how much it will cost you over time.

Every enhanced cockpit door on a plane costs $30,000—50,000. Screening every bag carried by airline passengers will cost taxpayers an extra $4.7 billion just for this year.

Ten million dollars to teach bus drivers how to deal with terrorist passengers. Twenty-two million dollars to teach terrorism safety techniques to truck drivers...

Two and a half billion dollars for highway security. Seventy million dollars for a student Homeland Security fellowship program. Twenty million dollars to renovate Homeland Security headquarters.

As I said, it all starts to add up. Along with the undetermined future costs of Iraq... Afghanistan... and now maybe Iran... over the next decade, it could set us back as much as $5.7 trillion!

Nobody knows for sure.

But the true hidden cost is the risk premium this creates for the foreign investors who lend us money for all this extra spending. This is how instability destroys faith in the dollar.

It's also why, in unstable times, the value of hard assets like gold, oil and other real resources are even more likely to take off. Here's one more way for you to get rich on that reality...

Epic Boom Opportunity #5: THE SINGLE BEST GOLD STOCK TO OWN IF YOU'RE ONLY BUYING ONE

Which gold stock would you buy if you wanted to own only one? Well, so far our Outstanding Investments readers have already seen 191% gains on Newmont Mining.

They've seen another 249% gain on Coeur d'Alene Mines... 332% gains on Glamis Gold... and 668% gains on Metallica Resources. Just to name a few. But these opportunities have already sailed by.

Your best bet is the gold company I'll tell you about right now. It's not small. In fact, it's one of the mega-producers I'm sure you already know by name.

What you might not know is this one gold producer will land leagues beyond competitors in 2010 and beyond...

Turn Every $1,000 Into $30,000

See, just a few years ago, this company was on its back. Mines were dying. Gold production had collapsed.

Then this company did something.

With just a little under $600,000 invested in a whole new wave of gold exploration technology... it took the entire mining industry into the innovation age.

Applying new discoveries in applied math, advanced physics and computer graphics... to the age-old business of digging holes in the earth and calling them mines... it got its payoff.

Within months, this company discovered 110 new pockets of undiscovered gold on property its own geologists had once given up for dead.

A shocking 80% of those new deposits turned out to be jammed with gold. Enough to crank out over $3 billion in new discoveries over the years that followed.

Once again, you can do the math. Any way you slice it, turning half a million dollars in R&D costs into over $3 billion is stunning. But that wasn't all of it.

The shares in the company also took off.

Every $1,000 invested in this company's stock soared, over that same period, to a stunning $30,000. That's impressive. But here's why this one innovative little mining company is just beginning to hit its stride...

Ten Steps Ahead of Every Other Gold Producer

There's already the usual stuff going for this company that you'd imagine for any world-class mining share. For instance, it has no company debt. Zilch. It also has $300 million in cash sitting in its bank accounts.

But it's this company's surprising move to "new tech" mining innovation that's really given it the edge. And quietly put it ahead of just about all of its mining competitors.

Take what it costs this company to get the gold out of the ground — just half what major mining companies like Newmont, AngloGold, Barrick and Harmony pay for the same product.

Meanwhile, this company is also producing gold faster than its competitors, too. More than 10 times faster than Newmont...triple the production rate of Newcrest... and better than five times the rate of AngloGold or Gold Fields.

In short, this one company crushes the nearest competitor.

Which makes it a perfect share for you to own as gold soars over the 12–24 months ahead. Political risk for this company is minimal. And all its gold is what you call "unhedged" — which basically means it'll start reaping even greater rewards as gold values go up.

And did I mention this stock also pays a dividend. Annually, 18 cents per share. And the company promises to hike up that rate even higher as the gold price goes up. It's like getting paid to own one of the best and safest gold stocks in the entire industry.

Just send for your FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! to find out more.

So now let's get to brass tacks...

Here's How to Get a FREE Copy of This Report

• Inside the FREE copy of Bullion and Beyond: Five Stunning Ways to Get Richer on the Epic Metals Boom Ahead! you'll get... a nearly undiscovered and unique way to snap up a position in gold for less than a single penny per ounce. And this advantage is pretty much locked in for the next 2 years, no matter how high gold prices fly
  
  
• An early chance to lock in 94% or better on the junior miner that just found 33 million ounces of gold — catapulting it to become one of the most important gold finds in history
  
  
• The blue chip mining company that no one is talking about — a huge producer that found a way to unearth "cheap gold"!
  
  
• An easy way to buy a stake in virtually all of the most stable and well-known gold companies... with a savvy move that's already given my readers hefty gains of 480%
  
  
• The one best gold stock to own right now and for the long term if you're set on buying only a single gold share. It'll churn out more gold at a lower cost faster than just about any producer in the world — plus, this one stock pays a handsome dividend.

Getting a copy of this FREE report sent to you is easy.

I can rush it to you in the mail. You can even download it right now. For either option, just click on the special order button below.

But there's still more...

• Every week, I'd also like to send you a FREE personal commodities investment update, straight to your e-mail account. You'll read about the top stocks in Byron's Outstanding Investments portfolio. Plus, other hot opportunities I have percolating on the stove. No charge whatsoever
  
  
• I also want to give you FREE access to our 24-hour Outstanding Investments Web site. This site is strictly "members only" and password protected. I'm inviting you to use it whenever you'd like to look up Byron's newest picks, the latest news and more. Also yours at no charge
  
  
• If you're not a subscriber already, I'll give you a FREE subscription to The Daily Reckoning — a contrarian market e-letter by New York Times best-selling author, Bill Bonner.
  
  
• On top of that, you'll get elite access to the Agora Financial Executive Series. The Executive Series is a members-only dispatch of two profit-laden e-letters, the Agora Financial's Executive Reports and the 5 Min. Forecast.These dailies will alert you to specific investment research and recommendations from across the entire world of investment opportunities that Agora Financial covers.

Why just give all this away?

Because, naturally, there's something I want you to do for me in return...

I Also Want You to Try Byron's Best Picks FREE for up to a Full Year

I believe you are like me.

I believe you know, as I do, that while $1 million worth of dot-com stock certificates isn't worth much more than kindling these days...

Raw real resources like copper... cotton... platinum... silver... natural gas... steel... oil... coal... and especially gold hold real and tangible value for civilization.

And that's what Outstanding Investments is all about.

While some stock investments can crash and fall to zero... we cannot exist or do business more than a few weeks, a few days or even, in some cases, a few hours... without the commodities that matter...

Oil to burn... land to stand on... copper pipes and wires in our walls... circuitry in our computers... electricity to power our lights, our appliances and the Internet... lumber, steel and grain... and precious metals like gold and silver to help us protect our wealth.

We've always stood for making a fortune in rich resource plays, even when it wasn't popular. But over time, the strategy has consistently paid off...

With a 151% gain on Wheaton River Minerals... 162% gains on Intrepid Minerals... a solid 332% gain on Glamis/Francisco Gold... and 668% gains on Metallica Resources, all in 2002...

Plus, another plus 105% gain on Gentry Resources... 151% gains on Tocqueville Gold... 235% gains on Niko Resources... and 249% gains on Coeur d'Alene Mines, all in 2003...

116% gains on Cameco... 174% gains on PetroChina... and 270% gains on the July silver calls, all in 2004...

In 2005, 107% gains on Norsk Hydro... 108% gains on Anglo American PLC... 160% gains on b.... and an impressive 179% gain on Talisman Energy...

In 2006 and 2007, we locked in 83% on Placer Dome... 147% on BG Group PLC... 78% gains on b... 87% gains on Walter Industries... and a solid 177% gain on Coeur d'Alene Mines...

In 2008 and 2009, 82% on Valero… 43% on CONSOL Energy… 40% on Allegheny Technologies… and 43% on ABB.

And so far in 2010, 169% on Goldcorp... 191% on Newmont Mining... 172% on EnCana Corp.... 480% on American Century Global Gold... 476% on Suncor Energy... just to name a few.

What I'd like to ask you to do — in return for my giving you all five FREE picks in the Outstanding Investments "Bullion and Beyond" Library... plus all the other gifts we've talked about... is simply agree to give the award-winning Outstanding Investments monthly advisory letter a try.

As I said, right now you can have this trial subscription FREE for up to a full year. FREE. I'll show you month to month what Byron's watching, what he's recommending and what to do next with the holdings we'll track in each issue in our highly ranked, resource-focused Outstanding Investments portfolio.

FREE, you'll find out how to shore up your wealth safely with bullion investments. And FREE, Byron will also walk you through even better and easier ways to get in on the same mega-trends.

You'll get to keep all this at no charge. Along with everything else I'll send. No questions asked. But in order to make this possible, there's only one small thing more I'll need you to do for me.

(Yes, there's a catch. But it's one I'm confident you'll like very much.)

See, it's not free — on my end — to send out these newsletters. Or to put together, print and mail out the library of five special investing picks I'll be giving you at no cost to you.

So just to be sure you're as committed to these ideas as I am... here's what we're going to do. I'm making this possible by simply slashing the subscription rate I'll offer you by half.

So let's say you sign on for a year's worth of Outstanding Investments. It's like getting six full months of issues FREE. Gratis.

What you pay to sign on need cover only the second half — by which time you'll have had six FREE issues, all the FREE picks and the rest of my gifts to you — to make money and decide if this is for you.

Doesn't that sound fair?

And then, if you decide right away to sign on for two full years of issues, the same kind of deal applies — you get the whole first half of your subscription, or 12 full issues, FREE. You're getting a two-year membership, but at only the one-year price.

What's that price?

Normally, others would pay $99 to get 12 months of issues. You'll pay only $49 — half price — which means you're getting six of your 12 issues absolutely FREE.

To get 24 months of issues — two years of Outstanding Investments — others would normally pay $198. You'll pay only $89 — actually LESS than half price — which means you'll get 12 of your 24 issues absolutely FREE.

I can't think of a better deal. Or a better way for you to get plugged in quickly to all the opportunities both Byron and I see playing out as we move into 2009.

But there's still more...

My Revolutionary "'Double —the —Value' Guarantee"

At the very start of this letter, I told you I would make you a guarantee that gold would soar at least 78% above today's price levels, or you pay nothing. Let me be more precise.

Gold prices, obviously, change every day.

When I first made Outstanding Investments' "gold at $2,000" prediction public, it would have had to soar 257% to hit that mark.

Now that margin is narrowing.

As of this writing, it's now only a 78% move. That would mean nearly double the value of an ounce of gold today. And that, you might say, is still a big jump. But I'm so sure the Outstanding Investments call is right on the money I'm willing to back it myself, with my own reputation on the line.

That is, if gold doesn't close that 78% gap by the time your Outstanding Investments subscription — both the trial and paid parts — is finished, I'll eat my words. Your entire sign-up costs are on me. I'll refund every penny, if you feel that's what's due.

All I ask is that you read the issues... study the picks... visit the Web site and dig into the archives and extra materials... and then decide for yourself what Outstanding Investments can do.

In fact, if you decide to cancel for any reason, even up to the very last day of your very last issue... you just let me know and I'll still give you a full refund. Even if gold has crossed the milestone mark Byron and I say it will.

Why?

Because I know already it's no accident Outstanding Investments wins awards. And it's no accident Hulbert ranked it the No. 1 performing advisory letter of the last five years in 2005 and again in 2006 and 2007, either. We're onto something. And I'm confident that after you give Outstanding Investments an honest try, you'll think so too.

You won't want to cancel at the end of the subscription period. In fact, I'm confident you'll beg to renew. Because you'll have the chance to make too much money on these opportunities not to.

Sign up, read and profit, share what you find with your family.

Then wait. Watch the gold cycle. Watch the other rich resource opportunities we'll talk about in upcoming issues. And then you decide what you'd like to do.

You risk nothing by giving this a try. Your only risk is sitting on the sidelines. Even if you don't decide to stay on, everything we send is yours to keep. This is entirely up to you.

I hope that sounds fair.

More importantly, I hope this sounds like something you're ready to do. Byron's other readers are already locking into these soaring trends for the long term. I hope you'll decide to act on them sooner, rather than later, too.

The "Hows" of Moneymaking

On G+2 (Goldman plus 2), the best stock market managed to inch ahead once again. For the second day in a row, most of the non-Goldman part of the stock market produced modest gains...even though Goldman, itself, slipped more than 2%.

It was a very strange day for the immensely successful and widely despised financial firm. Before the market opened for trading, Goldman reported a dazzling earnings result for the first quarter - the second best quarterly result in the firm's 141-year history. And Goldman generated this result in classic Goldman fashion - a smattering of profits from traditional business lines like investment banking, along with a mountain of profits from proprietary trading.

But investors did not cheer the earnings result; they were still too busy booing Goldman's fraudulent conduct...and the grim consequences that might ensue. The various investigations and lawsuits that Goldman will soon endure is bad news. The possibility that disgruntled clients might jump ship is worse. How, for example, could Goldman possibly produce its proprietary trading profits if there were no stooges around to take the other side of its trades?

Goldman needs those stooges...er, clients...to grease the wheels of its profit machine.

Goldman's top brass insists the firm has done no wrong. But many are the critics who insist the firm has done little right...for its clients, that is. This firm knows all about making money. No one doubts that. But the "hows" of that moneymaking are becoming a topic of national interest...and disgust.

One faithful Daily Reckoning reader, who also happens to be a former attorney, provided the following insight:

Goldman Sachs is in a lot of trouble.

It is in far more trouble than most financial commentators seem to realize, for reasons that are deeply embedded in the American system of justice. Since Colonial times, American courts have required witnesses to take a specific oath. This oath has become a part of American folklore. From Perry Mason to Boston Legal, every witness who takes the stand must swear, "to tell the truth, the whole truth and nothing but the truth."

It is the "whole truth" portion of this oath that puts Goldman in such trouble. The law recognizes that you can deceive people without ever saying anything false, just by omitting critical truths.

A real estate ad that said, "This home is in a beautiful neighborhood, is immaculately designed and was at one time owned by a famous celebrity," might be 100% truthful. But it would also be 100% deceptive if the sales agent failed to mention the additional truth that "the walls are insulated with asbestos."

Omitting important truths is a crime...especially in the financial industry. This concept is literally written into the definition of securities fraud. The most important expression of that definition is SEC Rule 10b-5 : Employment of Manipulative and Deceptive Practices.

This rule states that in connection with the selling of securities, it is unaawful for anyone to "make any untrue statement of material fact, or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading."

In other words, you can't just tell someone the truth about the portfolio of collateralized mortgage obligations you are trying to sell, you have to tell them the whole truth.

And this is why Goldman Sachs is in such deep trouble. When Goldman was attempting to sell the portfolio of mortgage obligations to various parties, it never told them:

"We want you to know that we built this portfolio for a hedge fund manager who wants to short the collateralized mortgage market because he believes it is overpriced and may collapse. He could be wrong, of course, but he can't take a short position unless someone else buys the actual securities we have created. Would you like to buy those securities?"

Call me naïve, but I expect that most ordinary Americans, which is to say, people who sit on juries, when they hear that testimony will be thinking to themselves, "Wow! I'm not sure I would have bought those securities if I had known the whole story."

Goldman is in deep trouble if it has to tell its story in a courtroom, where every single employee-witness will have to tell the whole truth - perhaps for the first time.

Here's our question: If Goldman Sachs is truly in trouble, isn't the best stock market in even deeper trouble?

Goldman is the largest player in the US stock market, and one of the most influential players in every other major financial market. Therefore, a discredited and enfeebled Goldman Sachs is probably not a bullish event for share prices.

The Goldman Sachs Fraud Charge Is Just the Beginning

Goldman Sachs reported monster earnings on Tuesday. First-quarter profit was up 91% year-on-year, to a whopping $3.46 billion.

The growing consensus seems to be that the SEC fraud charge is not that big a deal… that Goldman will likely pay some kind of fine, probably less than $100 million, and then it will be back to "business as usual."

The investment bank has its defenders too – some of whom are Taipan Daily readers. Goldman apologist Robert W. weighs in:

It's too bad that JL doesn't mention that GS lost 90 million in the deal and that ACA picked its own on what to put in the CDO. Goldman more than held up their part in showing both sides what was going on. That's why it took 3 years and is a civil case not criminal. Notice the 2 democratic members (puppets) of the SEC and OBAMA went right after GS. Politics should keep their nose where it belongs and let the SEC do their job.

Okay, Robert, where to start. How about that supposed $90 million loss.

"Subject to Losses" – Yeah Right for top stocks

"We were subject to losses and we did not structure a portfolio that was designed to lose money," Goldman said on Friday. That reported loss was in the ballpark of $90 million – the between-the-lines statement being, Hey, we lost money too, how can we be the bad guys here?

Except "loss" is a very slippery term in this case.

Imagine that you and I go into business together, and decide to buy a warehouse full of widgets. You put up 90% of the capital for the deal; I put up 10%. Then I go out and buy fire insurance on the side without you knowing about it.

When the warehouse burns down, I make a killing on the insurance policy I bought. The sliver of capital I "lost" due to the fire – the 10% I put up – is dwarfed by my gigantic gains made on the insurance side.

And if you decide to question my motives, I can claim innocence because I was, ahem, "subject to losses" just like you.

The above describes exactly what Goldman Sachs did. How do we know? Because the top brass had bought into the bearish subprime case BEFORE the Abacus deal was finalized. As The New York Times reports, "Goldman's top ranks changed its stance on housing in December 2006"...

The Abacus deal lost more than a billion dollars. The $90 million or so that Goldman "lost" was a tiny sliver of that total, dwarfed by the money they raked in shorting the daylights out of the entire subprime complex. (They actually BRAGGED about that shorting campaign too – remember all that guff about how GS was such a great risk manager, having protected itself from the fallout created by its own products, while all the other banks were too dumb to do this?)

Plausible Deniability

As for the idea that ACA "picked on its own what to go into the CDO," that's just fantasy, pure and simple. This is the kind of bait and switch that can be handled with a simple phone call.

Why is it, do you think, that mafia bosses never give orders over the telephone? Two words: "Plausible deniability."

And we know the Abacus deal was hand-crafted by Goldman's client – Paulson & Co. – because not one but TWO other sources were rejected first.

Paulson & Co. tried to set up a similar deal through Wells Fargo, but decided not to because Wells Fargo wouldn't play ball. They wouldn't go trashy enough, insisting on higher quality offerings in the mix. That would have made the shorting profile less attractive.

And then there was Bear Stearns (the bank that got swallowed up by JPMorgan).

Paulson & Co. originally approached Goldman Sachs, Bear Stearns and Deutsche Bank with the idea of creating CDOs that they could bet against. Bear Stearns said no on the grounds of ethics.

According to Bear Stearns trader Scott Eichel (as told to WSJ reporter Greg Zuckerman): "It didn't pass our ethics standards; it was a reputation issue, and it didn't pass our moral compass."

Ironic, that. Before going under, Bear was known for being one of the toughest, most brass-knuckled, take-no-prisoners players on the Street. And yet even they said no.

After walking away from Wells and Bear, and coming to Goldman with a keenly focused objective in mind, the idea that Paulson didn't have full control over the Abacus deal is ludicrous. They wanted toxic garbage, and they got it.

Hurdles and Political Witch Hunts

As for why the case is "civil and not criminal," that's because the government learned its lesson with the criminal prosecution of two Bear Stearns fund managers, Ralph Cioffi and Matthew Tannin.

The burden of proof is much higher in a criminal case. After Cioffi and Tannin were judged not guilty on all criminal charges, the government changed its strategy. Pursuing a civil action against Goldman, rather than criminal, means there is higher likelihood of making something stick.

The political witch hunt aspect is definitely real. Once again, Democrats and Republicans showed their true colors in this mess – the Dems by using the charge to try and score points just before banking reform legislation hits, and the Republicans in blindly defending the investment banking complex.

As for letting "the SEC do their job"… the SEC has NEVER done its job. Two words: Bernie Madoff. Two more words: Allen Stanford. If the SEC were to actually start doing its job now, that would be a first.

The Thin End of a Wedge

At the end of the day, Washington is still run by clowns and the SEC is still a bunch of keystone cops. They may well screw up the case, especially when matched up against Goldman's superlawyers.

Especially because, as reader Robert W. shows, there are all kinds of "plausible" means of arguing Goldman's innocence – defenses that will sound very powerful in the capable hands of a highly paid legal team. Those arguments may well be garbage from a commonsense standpoint, but they could easily be enough to beat back the SEC in court. It's always hard to pin down a savvy defendant, especially one with very deep pockets.

Here's the thing though.

Even if Goldman Sachs beats the SEC, the troubles are just beginning to mount. The fraud charge is the thin end of a very big wedge. To understand why, consider the following:

• Goldman has more than a legal problem. It has a public relations problem.
• That public relations problem is now Godzilla-sized.
• Even if the SEC case goes away, countless NEW lawsuits are coming.
•  In the eyes of the public, a strong pattern of deceit has been established.
• All the clients who got burned by subprime are now pondering just how badly Wall Street made fools of them… and what they should do about it.

In your editor's point of view, David Kotok of Cumberland Advisors has it right:

In Cumberland's view, the GS news is big and is not a one-off event. Since the announcement of the SEC suit, we have been polling everyone we talk to about GS. They are universally despised. The alleged wrongdoings have intensified an already large anger. GS arrogance has created a perception problem, and now GS has a reality problem. It could quickly become a criminal action. One lawyer said "just wait until we hear from Andrew Cuomo."

We expect that there are a lot more charges coming and they will impact GS and many other firms. And we will soon see state attorneys general piling on. The plaintiff law firms are already preparing class-action suits. Germany and the U.K. are launching their own investigations. These types of allegations are not going to be confined to SEC vs. GOLDMAN SACHS & CO. and FABRICE TOURRE. The allegations will not be limited to a single security series known as Abacus 2007.

Hitting Them in the Wallet

The real problem here is that Wall Street has lost control of the narrative. "Fraud" is a very, very ugly word. And now the public has a blueprint for seeing and understanding, in a relatively simple and not-hard-to-understand way, how Wall Street managed to rip off a bunch of gullible clients, in service to the interests of a handful of sophisticated ones.

Nor is this trouble limited to Goldman Sachs. What Goldman did was merely a template. As the WSJ reports, the SEC is already investigating other instances of the same maneuver, in which sharp clients benefited and gullible clients got burned.

Consider, too, the perspective of the typical investment banking client. For every atypical client that made a killing on subprime, like Paulson & Co., there were dozens, if not hundreds, of those who got killed on the other side.

All those burned clients now have to be asking themselves, "Does Goldman Sachs (or whoever, fill in the blank) really have my best interests at heart... or am I just a sacrificial lamb? Am I really an 'important client' to these guys – or just cannon fodder?"

Con men have an old saying: "You can shear a sheep many times, but you can only skin him once."

Whether or not the sheep who got skinned rise up in anger against Goldman Sachs now (and other i-banks of the same ilk), they won't be as easy to shear from here on out. And that means a coming drop in revenues.

Meanwhile, as a backdrop to all this, we are headed straight into the teeth of a rising interest rate cycle, an increasingly hostile regulatory environment, and a stalling out of the unsustainable "mad money" consumer spending binge… all with a stock market that is by some measures more than 25% overvalued.

The bulls can try to ignore the weight of the Goldman fraud charges in the short term. But from a bigger-picture perspective, this could prove to be a perception-altering sea change event that will not be denied.

The Single Uranium Play for Right Now

Publisher's Note: Before I bring you today's Wealth Daily, I want to focus your attention to a developing investment opportunity. As you know, I love biotechnology. I consider it one of the best growth sectors for the 21st century. And as you probably know, my favorite microcap biotech stock is a company called Anavex Life Sciences (OTCBB: AVXL).

Yesterday, tiny Anavex traded more than 129,000 shares. For tightly-held, thinly-traded Anavex, this constituted a massive volume spike:

To give you an idea how big the volume was yesterday, the last time Anavex traded that many shares was in April of last year. So what's going on?

There are rumors on the Street that 1) some big industry players are looking at Anavex as a potential partner or takeover target; and 2) Anavex's big animal toxic data has come in very clean. Now these are only rumors... But if the trading action is indicative of anything, I would say to get ready for some positive news flow from the company.

Anavex is an up-and-coming player in the Alzheimer's drug market. With nearly 80 million baby boomers set to retire over the next 20 years, Alzheimer's is going to be a prevalent disease among this huge demographic cohort.

Bigger pharmaceutical and biotechnology companies want to be positioned for this... and they're looking at innovative, smaller companies to add to their drug platform.

Next week, I hope to deliver a full update on Anavex Life Sciences.

Stay tuned...

Over the past few weeks, I've been talking to some of my contacts in the uranium space. After some digging — and a lot of phone time — I came across a trading opportunity so good that I had to get it out now, before it got away from us...

You'll remember that uranium was in a mania between the years of 2005 and 2007. On the Venture Exchange in Vancouver, nearly 600 "uranium" companies started trading literally overnight.

But like all manias, this one ended in a tsunami wave of misery, heartbreak, and bankruptcy.

Junk uranium companies went belly-up almost as soon as they started trading.

However, the demand for uranium never diminished. And we can now pick at the carcass... and buy quality uranium top stocks investment for a fifth of the price they were valued at just two years ago.

Given the push worldwide for cleaner energy, we think it's a given that nuclear energy will be a growing component of the mix for years to come.

What I'm trying to get at is that nuclear energy is at once a clean, reliable, and growing energy source. One that should be embraced even by the greeniacs. And to some degree, it has...

Patrick Moore, a founder of Greenpeace, has wholeheartedly embraced nuclear energy as one of the best ways to reduce emissions. Even President Obama believes that nuclear must be a part of the path toward sustainable clean energy.

Obama, in his State of the Union Address in January:

To create more of these clean-energy jobs, we need more production, more efficiency, more incentives. That means building a new generation of safe, clean nuclear-power plants in this country.

Obama has pledged $54 billion to build more nuclear power plants.

Like it or not, the nuclear power industry is ramping up.

And while the industry is heavily regulated — and reactors incredibly expensive to build — technology and engineering advances are solving many issues facing the industry, such as disposal.

Nuclear power capacity worldwide is increasing steadily, with over 50 reactors under construction in 13 countries.

Most reactors on order or planned are in the Asian region, though there are major plans for new units in Europe, the United States, and Russia.

But for the type of gains we're interested in, we look beyond the obvious. And that means looking beyond reactors to the raw ore needed to produce the fuel that powers them.

That means uranium.

Now pay close attention, because this is the part where you make money...

This particular play should give us gains on the order of 50%-100% in a matter of months.

Buy Uranerz Energy (AMEX: URZ, $1.50)

Now, let me get something out of the way right upfront. While I expect nuclear power to supply power demand for decades into the future, longer-term, we'll see a switch to another technology and another fuel — most likely thorium.

But that's years away. For now, uranium is the name of the game.

And this company offers a unique opportunity in the uranium space.

Uranerz owns proven high-grade uranium properties in mining-friendly Wyoming. The company is due to receive its permitting by July of this year. When that happens — actually, before it happens — we should see gains of up to 100% or more.

Once the company has permits in hand come July, the stage will be set for production next year. They're 90% of the way there. But in terms of the top stock, I expect we'll see a premium of another 75% to 150% from current levels when they announce the permit.

If you've paid attention to Uranium Energy Corp (UEC), you can appreciate how the market values the certitude of having the final permits in hand.

They were trading at .20 last April when they started to get their permits. The stock now trades for $3.68 — a 1,700% gain.

As I mentioned before, URZ is in Wyoming, the most mining-friendly state in the nation. In fact, of the seven ISR (in-situ recovery) permits issued in Wyoming since 1981, URZ management members were directly responsible for the acquisition of three of these permits.

URZ already has two long-term contracts (one with Excelon) comprising almost 50% of its production.

Now, based on when these contracts were inked, I calculate that they're priced between $65 and $70/lb. for about half of our production. Excelon operates the largest nuclear fleet in the U.S.; the third largest in the world. They clearly understand the value of URZ's uranium deposits.

More highlights:

• We expect the company to increase the resource base from between 30% to 60% in the next 6 months;
• Cash in bank: $28 million; capital cost to get to production: $35 million;
• Producing company by 2011;
• Next door neighbors are Cameco, Arriva, and Uranium One - all among the biggest players in the world;
• Once the permits transfer over, URZ will be the next takeover target for Uranium One;
• Very large institutional following: near-term price range of $3;
• Included in the Russell Index;
• There's very little chance that this property won't go into production, since Wyoming has never denied a permit; 
• Denison Mines, another uranium powerhouse, owns 8.5% of the company.

This all takes a big part of the risk off the table.

Now in terms of the industry, China has 20 or more reactors within two years of coming online. India and Russia are also driving this. There are 53 new nuclear facilities in various stages of construction right now. So I think the demand side of the equation is solidly in our favor.

Also worth noting is that Uranium One sold their fully-licensed Texas property to UEC and bought the Christiansen Ranch, which lies adjacent to the URZ properties in Wyoming, paying $35 million — and that's not counting liabilities...

You see, Uranium One understands the high-grade nature of the ground that URZ owns, as well as that which surrounds the properties. Could this be their first step in positioning themselves for a takeover bid?

You bet.

Long term, URZ plans to exploit their fully-owned Wyoming properties with advance permitting, continued exploration, and development drilling, with a medium-term goal of producing 1.5 million pounds u3o8 per year.

Given what happened in the case of Uranium One from just before they announced permitting, I expect interest in URZ to pick up steadily in the coming months.

Simply put, we need to be out in front of this. I'll have a more detailed recommendation for you in the coming weeks. But the reason I'm sending this incomplete report out now is simple: timing is everything.

Buy URZ at current levels for triple digit gains in the coming months.

Profit from these 6 Land-Heavy REITs

It's a commodity more important than gold or oil... A resource that provides our most basic needs... An asset in very limited supply: land.

Over the years, I've allocated a portion of my portfolios to land-rich companies. Typically, these are not pure land plays; they have other operating businesses that may or may not be connected to their land holdings.

These include public companies in the timber, coal, mineral, and agricultural industry. With such businesses, investors are not dependent on the companies converting their land into cash for success, but still get the benefit of owning the land asset.

Investing in these land-rich top stocks for 2010 have some benefits over acquiring physical land itself. Shares of stock are much more liquid and brokerage commissions are a hell of a lot lower than insurance premiums and lawyer fees.

Here are a few ideas to help get you started...

Investing in Land Stocks

Tejon Ranch Company NYSE: TRC Stock: $31 Market Cap: $523 Million Land Asset: 270,000 acres Location: California Market Cap / Acres: $1,937 Website: www.tejonranch.com

Tejon Ranch was founded in 1843 as a Mexican land grant. In the decades that followed, the ranch grew in size as additional land grants were purchased by Tejon's founder, General Edward Fitzgerald Beale, a historic figure in early California.

Today, Tejon is a diversified real estate development and agricultural company whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 25 miles south of Bakersfield.

The company generates operating revenue from land entitlement and development, commercial leases, marketing of real estate projects, oil and mineral production, utility easements, recreational activities, and filming locations. Tejon also generates revenue from farming almonds, pistachios, walnuts, and wine grapes.

Cresud, Inc. NASDAQ: CRESY Stock: $13 Market Cap: $651 Million Land Asset: 1.2 million acres total, 800,000 acres undeveloped Location: Argentina Market Cap / Acres: $543 total, $814 undeveloped Website: www.cresud.com.ar

Cresud is one of Argentina's largest agricultural companies. They raise beef and dairy cattle and grow corn, soybeans, sunflowers, and wheat.

The company is also one of the largest landowners in Argentina. Cresud has about 1.2 million acres of land, of which 400,000 acres are in productive use.

The company leases its land out to other agricultural companies including Tyson Foods. Cresud also owns stakes in a couple of other publicly traded companies, including a 60% stake in the Argentine land company IRSA and a 20% stake in Brasilagro.

PICO Holdings, Inc. NASDAQ: PICO Stock: $33 Market Cap: $740 Million Land Asset: 440,000 acres Location: Nevada Market Cap / Acres: $1,681 Website: www.picoholdings.com

PICO Holdings is primarily engaged in the ownership and development of water resources and water storage operations in the southwestern United States.

The company currently owns about 440,000 acres of land in Nevada that were originally part of 1.2 million acres of former railroad land that PICO purchased in 1997. The company has strategically sold off nearly two-thirds of its original 1.2 million acres over the years, but it still owns water (and other rights) on more than 1 million acres.

The company also develops and sells real estate and related mineral and water rights, as well as leases properties for grazing and agricultural uses. PICO is additionally focused on the acquisition, ownership, and development of residential lots, primarily in California. The company owns or controls more than 500 finished lots and 3,100 in various stages of entitlement — plus 1,400 residential lots on 244 acres in Monterey. PICO also owns two insurance companies that are currently in run-off.

Plum Creek Timber Co, Inc. NYSE: PCL Stock: $37 Market Cap: $5.99 Billion Land Asset: 7 million acres Location: Diversified U.S. Market Cap / Acres: $855 Website: www.plumcreek.com

Plum Creek Timber owns and manages timberlands in the United States. The company's products include lumber, plywood, medium density fiberboard, and related by-products like wood chips.

Plum Creek Timber is also the largest private landowner in the United States. The company controls over 7 million acres of timberland in 19 states with large land holdings in Florida, Maine, Montana, and Wisconsin.

The company also operates a wholly-owned residential development business that builds homesites.

TimberWest Forest Corp. TSX: TWF.UN Stock: $5 Market Cap: $397 Million Land Asset: 796,000 acres Location: Vancouver Island Market Cap / Acres: $498 Website: www.timberwest.com

TimberWest is Canada's largest private timber and land management firm. The company manages its assets for long-term sustainability to assure a steady and continuing flow of high quality timber and cooperation with its neighboring communities. About 85% of TimberWest's production of Douglas-fir and hemlock is second growth. The company also harvests a mixed inventory of wood including western red cedar and balsam.

TimberWest is also Western Canada's largest private land management company. The company owns 796,000 acres of timberland on Vancouver Island. TimberWest also has a residential real estate development subsidiary.

Texas Pacific Land Trust NYSE: TPL Stock: $28 Market Cap: $275 Million Land Asset: 965,000 acres Location: Texas Market Cap / Acres: $285 Website: www.tpltrust.com

The Texas Pacific Land Trust was created in 1888 after the bankruptcy of the Texas and Pacific Railway Company. Holders of Texas and Pacific Railway Company bonds received 3.5 million acres of land in Texas which had been earned by the railroad and pledged as security against bonds. The bondholders created the Texas Pacific Land Trust and converted bonds to shares of proprietary interest in the Trust, which was created to manage and sell the land.

After 122 years, the job is still only 70% complete. The Trust is one of the largest landowners in Texas with around 965,000 acres located in twenty different counties. Texas Pacific Land Trust generates revenue from land sales, grazing leases, easements, as well as a perpetual oil and gas royalty interest in some 387,000 acres.

Earn Venture Capital Profits for Your Stock Portfolio

Nanotechnologies are not some future development. The Project on Emerging Nanotechnologies estimates that nearly 1,000 products that rely on nanotech are on the market now.

Currently, most applications simply integrate superior nanotech materials into existing products. Carbon allotropes are used to produce gecko tape. Antibacterial nano-silver is used in clothing, food packaging, disinfectants and household appliances. Nano-sized cerium oxide is employed as a fuel catalyst. Increasingly sophisticated products are appearing at the rate of two-four per week.

This month, we're going to invest in 33 nanotech companies. Almost all are pre-IPO privately held startups. And we'll do it in one step while retaining complete liquidity.

In the process, I'll describe how one company is altering the DNA of viruses to attack cancers. I'll also talk about a company that gets oils from algae. Another company that we'll be adding to our portfolio is the leading contender in the race to make your current computer as obsolete as an abacus.

It's Time to Get Into the VC Business

One of the greatest frustrations about this job is coming across fantastic startups that I can't add to the portfolio. I've written at length about a few of these pre-IPO companies with enormous, nearly inevitable returns. There are many more, in fact, that I haven't mentioned. As a result, I truly envy venture capitalists. For some time, I've been fantasizing about a breakthrough technology venture capital fund. This isn't quite that, but it's close.

The attractions of the VC (venture capital) business are obvious. One is simply the ability to go where equity investors cannot. It irks me that VCs get to buy into obviously transformational companies when we can't. The other reason is the rate of return enjoyed by VCs is typically so much higher than the stock market's. I really want you to get in on the high yields earned by angel and venture capitalists.

This is why I'm so pleased to have come across our newest addition to the Breakthrough Technology Alert portfolio. Buying best stocks for 2011 in this company allows you to participate in some of the most exciting and promising nanotech startups in existence — on better than VC terms.

This company acts as a kind of VC mutual fund, investing only in privately held early-stage breakthrough technologies. Moreover, your participation in the VC market remains liquid because you can sell the fund at any time. That's a privilege that normal venture capitalists don't have.

Not only does the VC fund take positions in important startups, it is actively engaged, bringing its expertise to and working side by side with the management of its portfolio companies. With its broad knowledge of the nanotech industry, the fund can help portfolio companies with general strategic and operational problems, as well as business and intellectual property strategy. It helps with executive recruiting, fundraising and compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
Perhaps most importantly, it is in the position to build collaborations with strategic partners.

In the process of vetting this company, I spoke at length with the company's CEO. I was pleased, by the way, to hear he had enjoyed reading some of our past issues of Breakthrough Technology Alert.

He took the time to explain the VC fund's investment philosophy to my associate Ray Blanco and me. According to this CEO, the current team has grown from four to 11 members since 2002. Five have extensive VC experiences. Additionally, team members have expertise in solid-state physicists, biochemistry and other technologies that intersect and converge with nanotechnology.

This team constantly monitors the world of nanotech. Additionally, it maintains contact with nanotech scientists in academia, where much cutting-edge research is taking place. While academic research is typically too early a stage for investors, these relationships allow the fund to identify important spinoffs as they occur.

We know that the long-term promise of nanotech is world changing. The immediate challenge for nanotech investors is finding companies in the commercialization stage. As I've explained, we at Breakthrough Technology Alert don't mind getting in a little early, because the eventual returns will be so high. Investors do, however, want to know that their portfolios will maintain and increase in value while waiting for those eventual huge returns. Everyone at this unique venture capital fund clearly understands this need for liquidity.

The Only Publicly Traded Liquid Nanotech VC Firm

To my knowledge, this investment is the only truly liquid nanotech venture capital company available to best stock buyers. Diversification is at the heart of its investment philosophy. It generally doesn't put more than 5% of its gross assets in any single holding.

It also maintains large cash reserves as a means of counterbalancing the inherent risk of investing in young nanotech businesses that are not yet profitable. As its CEO says, the fund offers a "diversified way to play the emergence of nanotechnology — when most of the companies are still private — in a public vehicle."

Several of its holdings are, however, already earning significant revenues. Companies in the portfolio generated $242 million in revenue for 2008, a 22% increase over 2007. Other companies are on track to becoming revenue producers or to significantly increase revenues.

Since I recommended this unique venture capital fund to my readers last week, we're already closing in on double-digit gains. If you want access to my full report on this best stock for 2011  — as well as new transformational technology stocks to buy every month.

How to Profit from Moly Stocks

Goro Nyudo Masamune had no way of knowing that a minor slip-up in his shop would kick off a global revolution in metals technology.

In fact, when the legendary Japanese sword smith accidentally knocked a small amount of grayish powder he'd been using as a holistic asthma medication into a mixture that would eventually end up as one of his prized blades, he considered scrapping the project and starting over.

It was sheer luck that he decided to take a chance and finish the weapon... 

Because when he got done making this particular sword, the result was the world's first modern Katana — a Samurai's most important and most iconic tool.

Its blade was unusually hard yet unbelievably flexible, never needed sharpening, and could slice through a human body from collar bone to hip in a single stroke.

This happy accident put Japan at the forefront of the global weapons industry — a status they'd retain until the introduction of flintlock muskets nearly three centuries later.

But what Masanume could have never imagined was how his innovation would transform the science of metals in the centuries that followed.

This grayish powder that Masanume unintentionally added to his blade over seven centuries ago is a metal called molybdenum (muh-lib-duh-num), or moly, for short.

It's a tongue-twisting word meaning 'lead-like' in Greek... Ironic, because this element not only possesses the 6th-highest melting point of all known metals, but is also a key ingredient in almost all of today's super-alloys.

Without molybdenum, the world wouldn't just be without Samurai swords.

Today, without moly's presence in modern alloys, you'd never be able to:

• Drive a car – because your engine block relies on it for its strength and heat-resistance.

• Fly in a plane – because jet engine components, especially fan blades, depend on it for durability.

• Fire a gun – because no alloy could handle high pressures without it.

• Build a skyscraper – because without it, construction steel would crumble under the tension.

For these same reasons, you'd also never be able to:

• Store pressurized gas like hydrogen or oxygen.

• Pump oil in massive quantities from the wells to the refineries.

• Receive life-saving medical implants, such as artificial heart valves and stents.

Put simply, without this metal, no alloy designed to resist extreme heat, pressure, tension or corrosion could exist.

And right now, as it works overtime for modern industry, it could also be working for your portfolio.

Molybdenum prices took a serious hit in the face of the global recession. But they're just starting to recover...

And while it's difficult to profit from physical molybdenum, there are plenty of moly stocks on the market with high leverage.

One in particular is a small mining company with a market capitalization of just around $70 million, which has recently acquired a property in Idaho containing over $60 billion of moly.

It's the biggest unmined reserve of the metal in the world — big enough to supply global demand, at its current rate, for the next decade.

The reserve is so huge, actually, that every time this metal's price goes up 5 cents... the value of the property jumps by $200 million.

And in my latest report, I tell you everything you need to know about the company that could be netting you 50% gains per month — every month — for the next two years!

When you subscribe to Hard Money Millionaire, you'll get this report with the full lowdown on all the details of this company — including, of course, the name and stock symbol.

I invite you to join Hard Money Millionaire today... before the word on moly gets out and the stock skyrockets.