How can I profit from gold? How high is gold going to go? Is this the once in a lifetime great gold bull run? Which investment will provide the greatest upside with gold already at $970-$980 per ounce?

Gold is hot, but on the verge of becoming white hot and investors are asking the same questions.

Pinnacle Digest believes we are on the cusp of a modern day gold rush that will be fuelled by investors hedging themselves against the potential of hyper-inflation.

The global standard, which today is still the US currency, is moving to hard assets and unlike fiat (government issued) currencies, cannot be debased by government bodies such as the Federal Reserve. At the very least, gold could be used as a security and hedge to back up the capital of global banks as we move into increasingly uncertain times. A new world standard of currency is looming with gold.

This Friday, we will be announcing our new, and first gold based, Featured Company of 2009. More details later in this report.

Governments around the world have made their economic choice. Inflation has been chosen over deflation. After historical episodes such as the Great Depression, governments will do everything in their power to ward off such a dangerous threat (deflation). It is widely accepted and believed that inflation is a lesser evil than deflation. We have all witnessed our government's actions over the past 9 months. The key dramatic measures taken have included dropping interest rates to 0% (or close to) and the pumping of billions of unwarranted dollars into the free market, in the form of bailouts and economic stimulus. In time, there will be the potential for severe inflation or even hyperinflation.

For months we have been explaining the threats of inflation. For those of you who do not read our newsletter regularly, we encourage you to go back and read our warnings of increased inflation and the effect it can have on gold.

Trillions of dollars being spent by the governments around the globe cannot go unnoticed. The situation we find ourselves in is different than anything we have seen before, and there will be severe consequences.

The question we all need to be asking ourselves is this: As an investor, what is the best way to leverage and protect one's assets in today's volatile market?

Our team has reviewed hundreds of analysts' opinions, all with their own reasons for why and how gold will make its historic run. Of the thousands of educated analysts calling for $2000-$3000 an ounce gold, we believe to have found one of the most conservative and successful market forecasters. This man has proven his level of foresight above any other in the financial industry.

Wall Street financial forecaster and economist Peter Schiff, is credited with calling the recession and stock market crash of October before anyone.

In 2006, Mr. Schiff told anyone who would listen to him that the United States was heading into an extreme recession. He predicted the October 2008 stock market crash. Unfortunately, very few listened to him and he was even criticized for his prediction. You better believe that when Peter Schiff speaks now, people listen.

Watch this amazing video below (notice how high the market indices were at the time this broadcast was launched).

Click here to watch broadcast

In our research, we have located some of Mr. Schiff's most recent opinions on the gold market and how to profit from it. Mr. Schiff was interviewed recently on BNW (Business News Wire). The critical excerpts are below:

Mr. Schiff stated that, "If you really want to grow your wealth, you should own gold in the mining sector." He also noted that, gold equities offer the greatest leverage to rising gold prices.

He went on to state that, "With gold stocks, there's obviously a lot of leverage to higher gold prices. As millions or billions of people discover gold as a store of value and as a way to escape inflation, there's going to be tremendous demand and somebody's going to have to supply that demand. It's obviously going to have to be mined."

"So the companies that have gold and mine it are going to see profit margins explode."

This extraordinary scenario will be accentuated by two key developments. One of them concerns the fact that burgeoning demand for gold will continue to outstrip annual global output. In fact, world gold production has been steadily declining since it peaked in 2001 in spite of a nearly US $600 rise in gold's price since then.

Mr. Schiff commented that, "Mines are not as productive as they used to be. Supply is very constrained. So if we get a big increase in demand, there are really no significant new gold deposits that are going to come on-stream any time soon. So the companies that are already producing are simply going to be able to get a lot more money for the ounces that they pull out of the ground."

Mr. Schiff concluded his interview with some very bold comments.
"I think that gold is going to go to many thousands of dollars an ounce. I'm not exactly sure how high but I think it will be a spectacular run."

He also said that, the other key consideration is an inevitable return to the 'Gold Standard' as a way for the world's central banks to attach a meaningful valuation to each of their country's currencies.

He then stated, "I think a lot of the gold stock prices don't reflect how high gold prices are going to go and what that's going to mean to the profitability of these companies. I don't think that this is appreciated by the market."

In closing, Mr. Schiff stated that, "This is one sector that we can be very optimistic about because gold companies are going to be in the business of producing money. That's going to be the money that people want. Not what the central banks are printing, but what gold mines are producing. That's going to function as money."

Majors and mid-majors who are producing are going to have unbelievable amounts of cash on hand and will be searching the earth for low cost, high grade gold deposits nearing production. We could be entering a period of significant mergers and acquisitions. At Pinnacle, we are strong believers that global banks will be forced to back up their currencies with a higher standard of hard assets - gold being a likely candidate.

Where does this leave us?

Gold is closing in on $1000 per ounce. If you want to buy gold bullion you will have to pay between $1200 and $1300 per ounce, because it is selling at a premium and is hard to come by.

A large producing gold company worth $12 or $13 dollars per share, with a market cap already in the billions, might go to $24 or $30 dollars per share and provide a great return. But many of these large caps have already increased over 100% since the market first bottomed in November.

The junior gold sector has yet to realize the gains of its big brothers. A junior mining/exploration company is what we are investing in and will be focused on during this potential gold run. Keep in mind, we aren't bringing forward a grass roots gold play about to drill its first hole. Later this week we will be introducing you to a company who has proven its gold deposit, expanding it and pursuing its objective to become a gold producer through surface mining. The resources this company is focused on start at surface and could be appropriate for low cost open pit mining techniques; well serviced by existing infrastructure. The company is operating in a prolific gold region and has already generated six figure revenue from a bulk sample.

Our next Featured Company will be delivered to you, via email, in five days time. Please don't hesitate to contact us with any questions you may have.

All the best with your investments,