Members,
As you are
all aware – for the last year, and especially since January, I have been
telling members to increase your gold/silver holdings to at least 10% of your
total net worth.
I then
encouraged members (based on the ‘fundamentals’ as well as what is happening
globally) to increase that position to 20% of your net worth. This
guidance is documented in many club meetings and writings that have been sent
to members. Historic articles and videos can be found at mikelathigee.com and
the club website.
So the
question now is – What do I do right now to make money?
Well I have stated on numerous occasions that silver moves very violently up
and down. Since March, it has skyrocketed from $14 to today over
$24 an ounce. Many of the silver and gold mining stocks
have doubled or tripled during this same time. For those who
still do not have exposure to gold or silver I would suggest to take a
position. The main reason is – I see continued weak US economic performance,
which is very bullish for gold and silver – due to a weakening US
dollar. I also believe a position in an ETF that focuses on
gold and silver mining companies has much more upside potential than an ETF
that simply focuses on the spot price of silver.
Platinum is
the next precious metal that I see having an opportunity to move (it is
‘lagging’ for now). At some point, I believe platinum will catch up
to gold. I will keep you posted.
One of the
main reasons I remain so focused on gold and silver is because of the non stop
printing of money by the Feds while corporations have leveraged their balance
sheets from 3 trillion in 2005 to $71 trillion today. In that same period
US companies have spent over $6 trillion on share buy backs instead of
investing in the business and share buy backs create no economic benefit except
inflate share prices and make executives rich.
Precious
metals will continue to move up due to the the following factors – ongoing
financial crisis, negative US Treasury yields, a flood of ‘quantitative easing’
by central banks, fiat currency debasement, zero to negative official interest
rates, out of control government spending, huge global debt, a weakening US
dollar & the risks of hyperinflation. Not in the last several decades have
all these factors happened all at the same time making gold and silver so
attractive.
I know my
message has been the same for a long time and those who listened are seeing
massive gains through taking past action but it is not too
late.
I believe
silver will continue to move up much faster than gold – with wild consolidation
periods. Industrial demand for silver remains strong. More than 100
silver mines around the world are closed due this ‘covid’ phenomenon and now
there is unprecedented strong demand for silver coins. In addition, when
I was looking at historical data, silver peaks before gold and it does ‘moves’
that are significantly more dramatic both upward and then downward.
As I watch CNBC today, (July 28) the main story all day has been the bullish
run on gold and silver – as the masses take some profits along the way and
enjoy the ride. We were a year ahead of the masses in our conversations
about gold and silver.
For those of
you holding now – a large position in gold and silver – I believe we will
continue to see the move upward but expect consolidation periods along the way
which will open up for new buying opportunities. Silver is
always of particular concern when investors hold it because it moves up and
down faster than any other commodity I have seen. It is for that reason
that – for those holding a silver position – it is good to take profits along
the way. I believe silver has much more room to run however. Taking some
profit in your silver mining companies, silver ETFs etc. makes sense at above
$23.5 an ounce. I suggest take about 10% profits on your silver holdings
now and stay long the rest of the position. For more conservative
investors you might take more profits at this time.
Despite the
uncertainty in the markets, the ‘LVIC Fund’ continues to perform and 350k of 2
million was allocated into the stock market. In less than 60 days that
350k has increased to over 450k. In addition, a few of the private
placements that manager / member Praveen has overseen are now engaged in
additional financings at higher prices than those when we became
involved.
In the oil
project – Mark and Paul are in an incredibly strong cash position and that
bodes well for all involved. Their prudent management style of
sound negotiation and buying at a massive discount will pay off in volumes to
all those involved. At the moment the team is deep into negotiation on an
acquisition target.
Our largest
project led by Jeff Clark is being masterfully managed. You all received
an update that he is now leading the industry by moving his gyms
outside. We are already seeing a influx of new gym
members who were unable to work out anywhere else; however, he
is juggling regulations and with only one outdoor gym opened so far he is
working on the others to try to get results and generate income. I have
said it many times in the past and will say it again – Jeff will ensure we
see our way through this difficult time and I am confident we will prosper
and have several new opportunities because of the many other gyms going out of
business. This is a testament to Jeff’s capability as many other entities
are either gone or will not make it.
I took some
“heat’ after our last club meeting from “Big Brother” for having an event that
was in excess of 50 people and no face masks. Big brother is
watching and I am doing my best to keep up communications and balance it with
regulations.
What I see
in the coming months is tremendous opportunities in the stock market and the
beaten up commodities sector as a result of a weak US dollar because
commodities are priced in US dollars. I am looking at specific
sectors that I believe will be beneficiaries. In the early 2000s, I
oversaw a $1 million investment in uranium stocks at under $8 a pound that
skyrocketed to over $120 a pound and many investors made huge sums of money by
investing in the portfolio and investing on their own following my
teachings. I believe there is potential again and I will
update members as I see opportunities.
In addition,
many parts of the commercial real estate industry are in a
shambles. In about a year I believe we, as club members, will be
looking at “bottom feeding” at cap rates that will be better than we saw in the
residential real estate in 2010. These are just my quick thoughts on this week and as we prepare for the
upcoming opportunities. With a solid track record of success – please share
this narrative with friends and associates and post on your social
media. By growing our membership base, it will allow us to look at
larger deals with less competition. It will be several months – but it is
prudent we start to grow our membership base and all members will benefit with
extra buying power.