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posted on Feb 05, 2010 04:22PM

All:

We all need to understand and not forget what this investment in Kimber is really all about. It is a wager essentially on the gold bull market continuing, i.e. that the economic policies of the United States’ financial leaders will continue to erode the value of the dollar in relation to more tangible assets and therefore facilitate gold’s continued rise to much higher levels.

Nothing that this government is doing involving its economic policies that has aroused criticism from various hard money circles has changed, nor, most likely, will it. In fact, this government is doing more damaging things for the dollar today that it was doing yesterday. The menu hasn’t changed. Dinner is still being served in the same manner even though the restaurant’s patrons are starting to puke all over the floor.

Any patient dying of a dreaded disease will have good days or even good weeks en route to his eventual and necessary demise. For a trained physician, this does not create a cause for hope. It makes one smile and perhaps feel good for the loved ones of the diseased for a short period of time. But the educated man understands that the end point is inescapable and determined.

I have brought you here, because, very plainly, this is the only place that is certain to prosper in the midst of the present harsh economic realities that surround all of us.

I would advise each of you to simply continue on with your lives as you must. Go about your business and leave the worrying to the great majority who have not correctly apprehended what is happening around them, a situation common throughout all periods of history involving the majority, not just this one.

Keep this in mind: Any non-precious-metals-related assets are going to lose just about all their value in the next few years. Apple, Cisco, Intel, Bank of America, everything. We are heading into a period of massive deflationary pressure. The prices of all things in terms of real money are going to fall. Hyperinflation will intervene between now and then in which, all assets that are dollar denominated will essentially disappear. IRA’s 401K’s, U.S. Treasury Bonds, promises of social security, medicare...pensions. It is all going to be gone, and nothing like it will be left. The system is about to be rebooted, and you are going to lose everything that is not nailed down to an anchor of hard money. Kimber and even junior miners of lower quality will provide that anchor. Be assured of this.

Bull

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