Jonathan Lebed Newsletter
QUICK URGENT NOTE: Massive accumulation is beginning in Agria (GRO) and HUGE gains are coming in the upcoming days, I`m positive! (scroll down quick to bottom of this alert for more info) Countless Lebed.biz Members are about to become set for life in 2014… and will be able to retire this year regardless of age, due to the gains they are about to make in gold mining stocks. The HUI/Gold ratio illustrates the performance of large-cap gold mining stocks vs. gold itself. Currently, we have a HUI/Gold ratio of 0.182. Exactly 13 years ago on February 12, 2001, we had a HUI/Gold ratio of 0.181… almost exactly the same as today. Why is this so important Well, I personally discovered something shocking… and a couple of weeks ago the organization I helped create the National Inflation Association (NIA) published an article about my finding. I created a chart for them that they published last month, and I just updated the chart this morning… and will show it to you below. Not only is the current HUI/Gold ratio almost exactly the same as it was 13 years ago… but this has been the case for about 14 months now, where the HUI/Gold ratio from January 2013 through today has basically retraced its exact movements from January 2000 through February 2001 – just about to a T, and I`m not kidding! Exactly two months ago on December 12, 2013, the HUI/Gold ratio bottomed a new 13-year low of 0.156, and since then it has bounced by an impressive 16..67%. However, the HUI/Gold ratio is still at its lowest level in 13 years! In fact, the HUI/Gold ratio has a 17-year average of 0.368, which is more than DOUBLE where it is today. When the HUI/Gold ratio was last this cheap 13 years ago… gold`s bull market was at its very infancy! After a dozen straight up years, gold was overdue for one down year! It is absolutely insane that just one down year for gold… caused the HUI/Gold ratio to fall back to its 13-year lows from early-2001… as if the gold bull run was over (and a massive bear market for gold was ready to begin). How was literally EVERYBODY on Wall Street except us dumb enough to believe this It`s rather simple, if you are naive enough to believe that the U.S. government`s economic statistics are accurate and we currently have annual U.S. price inflation of only 1.5%, then you probably also believe the economy is rapidly recovering and the Fed will soon end its QE programs and raise interest rates. The truth is, the government is lying to everybody – and price inflation is already close to 5%. Using a more believable GDP deflator, the U.S. currently has NO economic growth whatsoever.
I created the documentary Meltup with NIA a few years ago for a reason… I knew we would eventually see a massive Meltup in the Dow Jones, and everybody would temporarily look at it as a sign that the economy is beginning to prosper with real economic growth. I wanted to help as many people as possible become educated to the truth so that when the Meltup did occur, people would see it for what it really represents… and it represents the beginning of hyperinflation. The higher the Dow goes… the greater the warning it is providing us that hyperinflation is getting very close.
Late in 2013 when I perfectly called gold`s bottom and predicted that MASSIVE gains for gold mining stocks would begin at the very start of 2014, I was the ONLY person on earth predicting these things. Literally 100% of the articles published in recent months about gold and gold miners, were extremely negative. For example, The Globe and Mail published an article on December 31st entitled “More pain may be in store for battered gold prices” (http://www.theglobeandmail.com/globe-investor/investment-ideas/more-pain-may-be-in-store-for-battered-gold-prices/article16156947/) Back on November 22nd, CNBC`s featured story front and center on their homepage was “Goldman predicts steep losses for gold in 2014” (http://www.cnbc.com/id/101220299) Here is the chart of the HUI/Gold ratio so far this year vs. the same exact time period 13 years ago:
What this chart represents to me is that we have a crystal ball into the future by looking at what occurred in the market after February 12, 2001. It`s scary the similarities between now and then. Back then was a technology bubble in dot-com stocks. Today we have an equally sized bubble in the stocks of mobile, cloud, and social stocks. What happened over the following 30 days… 13 years ago On February 25, 2001, I was featured on the cover of NY Times Magazine in a 25 page article written by Michael Lewis, who most recently wrote the critically acclaimed best seller `The Big Short`. My story exposed all of Wall Street as a giant pump and dump scam, with analysts being paid millions to pump stocks on CNBC that the investment banking side of their firms were dumping. This caused investors to rapidly sell their etoys.com, pets.com, and other dot-com stocks that were trading for multi-billion dollar market caps of 30X to 50X sales.
The NASDAQ fell from 2,489.66 on February 12, 2001, down to only 1,923.38 on March 12, 2001, for a one month decline of 23%. Meanwhile, gold rose from $260.30 per oz on February 12, 2001, up to $271.90 on March 12, 2001, for a one month gain of 4.5%. The HUI gold stock index rose from 46.99 on February 12, 2001, up to 57.66 on March 12, 2001, for a one month gain of 23%! The NASDAQ crashed 23% while Gold stocks gained 23% during the same exact time period of February 12th, 2001 through March 12, 2001! The HUI/Gold ratio rose from 0.181 on February 12th, 2001 to 0.212 on March 12, 2001 – and it was just getting warmed up! Two months later it hit 0.277 and a year later it was 0.45, before eventually reaching a peak of 0.65 another year later! Check out he HUI/Gold ratio`s long-term chart below and look at the gains it made between 2001 and 2004. These gains are about to occur once again and this is our opportunity to become set for life:
NIA suggested GDX call options on December 28th that have already gained 97%! My favorite gold stock is currently Midway Gold (MDW), which I expect to explode to $2+ as soon as they announce that they secured the remaining necessary funding to bring their Pan gold project into production in 3Q 2014, which could be announced at any time now between now and the end of March! The biggest gainer in the upcoming days will likely be Agria (GRO). Massive accumulation is beginning to take place. GRO`s PGG Wrightson (PGW.NZ) was up big last night while the NZD skyrocketed, causing the value of GRO`s PGW stake to rise to $1.94 per share. GRO is overdue to make a MASSIVE short-term gain of 45% from yesterday`s close of $1.34 to a new 52-week high of $1..94! PGW reports earnings Feb 25th and I expect them to blow away everybody`s highest expectations! —– I am part owner of a firm that owns 460,000 shares of GRO. This firm intends to sell its GRO shares and can do so at anytime. It also reserves the right to add to its GRO position at any time. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: http://lebed.biz/disclaimer.htm Jonathan Lebed Lebed.biz Staff This message was sent to from:
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