Although NIA was praying that the debt ceiling bill would be voted down, we told you that it would definitely pass and today it was approved by the Senate and President.
Even with the debt ceiling bill passed, the world is waking up to the fact that the U.S. economic recovery is phony, which sent the Dow Jones Index down 265.87 today to 11,866.62. With the Dow Jones in decline we can pretty much guarantee that Bernanke is preparing QE3 in disguise, which could set the stage for hyperinflation to arrive sooner than we originally expected.
As we did expect, gold today rose $37.50 to a new all time high of $1,659.20 per ounce and silver was up $1.476 to $40.785 per ounce.
On January 4th with the Dow Jones/Gold ratio at 8.1, NIA predicted that it would make a major decline in 2011 down to 6.5. We are only into the eighth month of the year and already after today's trading the Dow Jones/Gold ratio is now down to 7.15. NIA remains very confident that its forecast for the ratio to reach 6.5 this year will indeed come true.
Also on January 4th with the Gold/Silver ratio at 46, NIA predicted that it would make a major decline in 2011 down to 38. The Gold/Silver ratio is now down to 40.68 and at one point earlier this year NIA's prediction did come true and the Gold/Silver ratio not only declined to 38 but it fell as low as 30.50. When the Gold/Silver ratio reached 30.50 we said that silver got ahead of itself and would dip, which it did. For the rest of the year we expect silver to slightly outperform gold and for the ratio to once again decline to 38.
NIA's latest gold stock suggestion from 11 weeks ago Mega Precious Metals (TSX Venture: MGP) is looking very strong and closed today at $0.59 up 59% from our May 18th suggestion price of $0.37. The Dow Jones is down 5.5% from May 18th until now and not many stocks are up 59% during this time period. We continue to believe that MGP is undervalued with huge long-term upside potential.
Please remember that NIA is not an investment advisor and you should never make investment decisions based on anything we say.
It is important to spread the word about NIA to as many people as possible, as quickly as possible, if you want America to survive hyperinflation. Please tell everybody you know to become members of NIA for free immediately at: http://inflation.us
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