The Federal Reserve along with the European Central Bank, Bank of Canada, Bank of Japan, Bank of England, and the Swiss National Bank are all lowering their U.S. dollar swap rates by 50 basis points! This is going to create massive worldwide monetary inflation and flood the world with U.S. dollars!
The Fed claims that these coordinated actions will enhance their capacity to provide liquidity support to the global financial system in order to “ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.”
It was also announced this morning that arrangements have been made to establish temporary bilateral liquidity swap arrangements so that liquidity can be provided in each jurisdiction in any of their currencies should market conditions so warrant. Although the Fed said, “there is no need to offer liquidity in non-domestic currencies other than the U.S. dollar” at this time, the stage is now set to create massive worldwide monetary inflation in other fiat currencies as well. The whole entire global fiat currency system could soon come to an end. The only solution to the upcoming hyperinflationary crisis will be a global digital gold backed currency.
NIA believes China will soon announce that they have dramatically increased their gold holdings to backup their rapidly growing foreign currency reserves, which have now reached $3.2 trillion. China’s central bank just announced this morning that they are lowering their reserve requirement ratio by 50 basis points to 21% from 21.5%!
NIA considers precious metal stocks to be extremely undervalued at this time and we believe they are set to outperform gains in gold and silver in the months ahead. We believe silver stocks have the most upside potential and that silver exploration stocks, although the most risky, could be the biggest silver gainers. NIA’s latest stock suggestion Mines Management Inc. (MGN), at its current price of $2.10, has the lowest valuation out of all silver exploration stocks we are aware of with an enterprise value of only $39.89 million, which equals a valuation of only $0.173 per ounce of their estimated 230 million ounce silver resource base.
NIA also sees huge upside potential in alternative energy stocks and sees the biggest potential in ocean energy, because the ocean makes up 71% of the earth’s surface and the ocean energy industry is still in its infancy compared to solar and wind. NIA’s second to latest stock suggestion Ocean Power Technologies Inc. (OPTT) has established itself as the leader in ocean energy with 41 issued U.S. patents and major partners around the world including the U.S. Navy, the U.S. Department of Energy, Lockheed Martin, Mitsui Engineering in Japan, Iberdrola in Spain, and Leighton Contractors in Australia! OPTT is currently trading for well below its net cash position of $4.10 per share.
Disclaimer: NIA owns 108,200 shares of OPTT that it purchased at an average price of $3.1079 per share. NIA intends to sell its shares of OPTT in the future and can sell them at any time. NIA also reserves the right to accumulate additional shares of OPTT at any time.
NIA is not an investment advisor. This email is not a solicitation or recommendation to buy, sell, or hold securities. Never make investment decisions based on anything NIA says. This email is meant for informational and educational purposes only and does not provide investment advice. NIA’s co-founders have previously disseminated information about OPTT in other media outlets.
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