Fellow Investor,

It's already begun. We haven't seen anything like it since the late 70s, but inflation is suddenly rearing its ugly head. Surely you've noticed what's happened to the price of gasoline since crude oil bottomed out at $33.87 a barrel last winter. As of this writing, it's more than doubled and it's still climbing.

And “you ain't seen nothin' yet!” Crude may linger a bit in the $70 - $85 range, but it's headed before long to $100 a barrel…back to $147…and eventually to $200 a barrel or higher. More on that in a moment.

Some thought we'd dodged a bullet.

We have not!

In the pages that follow, you'll find what I hope is an easy-to-follow explanation of why double-digit inflation will soon be the inevitable—it's irreversible at this point—consequence of …

• Washington's $6 trillion bailout…
• The Federal Reserve's decision to cut interest rates to essentially zero, and…
• The cranking up of the printing presses by the U.S. Treasury that had to find a way to pay for it all.

In the 1970s, when the original oil crisis sent the cost of most everything through the roof, it was primarily higher energy prices that caused inflation to spike at 13.9%.

As you'll see as you read on, the picture is made more complicated today by China's and India's rapid increase in their consumption of basic commodities for things like cars, railroads and skyscrapers.

The bottom line is that…
 

Inflation is likely to hit 10% by the end of 2010 and perhaps as high as 15% or even 25% by 2012! Its effect on the stock market and upon your life will be profound.

Why are my figures so much higher than other well-known economists? Because they don't like to write about things that tie their stomachs in knots, and for which they have no solutions. I've got answers, so I'm not intimidated by the major inflationary factors that—even if they're only half as bad as my projections -- are about to wreck havoc with our economy.

Here's why imminent inflation will be every bit as painful, if not worse than that of the 1970s:

1. We're now playing on a much bigger world stage. The two billion, increasingly-affluent people of India, China, and other Eastern and Middle Eastern nations are now competing with us for the commodities needed to support their middle-class lifestyle.



2. We're squandering billions of our capital on a rapidly diminishing supply of increasingly-more-expensive fossil fuel … and the world is running out of cheap oil, as well as a dozen critical metals. And don't kid yourself, alternative energies are not going to replace fossil fuel soon enough to save us.



3. Our balance of trade is out of control and about to catch up with us. The Chinese especially are tired of using their trade surplus to buy ever-bigger stacks of U.S. T-bonds. That game cannot go on forever. When the dollar gets weak enough, the Arabs and others will stop using it as the world's reserve currency. The Russians are already lobbying for a switch. That would put us on the outside of the world's economic system, looking in.



4. Our very expensive standard of living makes it impossible for U.S. manufacturers to compete with many of our trading partners. I mean, who would ever have thought that General Motors, an American icon, would go belly up? It's not just the unions either. An overpaid bureaucracy, a legion of lawyers and millionaire CEOs have all been feasting at the consumer's expense.



5. Americans are now way over their heads in debt. The equity in their homes has suddenly vanished. Tens of millions of home owners are watching the American dream turn into a nightmare. We've been saving less than 1% of our income and we have $11 Trillion in personal debt. Meanwhile, Indian families save a government-aided 28% a year and Chinese families, 42%. They might wind up owning the joint.



6. Global warming—real or not—along with healthcare, will continue to consume every spare cent in the national budget.

So what's the solution to inflation of 15%-25%? It's simple: make sure you own the basic things that the real world will be competing for—commodities! The worse inflation gets, the more money you'll make.

But you need to prepare yourself now. Get caught sitting on the wrong equities and you'll see the real buying power of your nest egg go into free fall. Switching to anything but the right commodity stocks could be equally costly. As was the case in the 1970s, a few specific commodities will offer the best haven in the coming inflationary storm. You can also, quite literally, outpace the stock market in the next two or three years if you know where to put your money now.

But not all commodities will ascend in unison. Nor, as is always the case, will all companies within the best sectors reward their investors equally. You need a well-planned strategy to prosper from the return of 1970s-style inflation.

So, let's begin at the beginning.

 

The Wall Street chatter now is all about the so-called “V” shaped recovery and the expectations for a continued rebound in the U.S. economy. After all, the stock market made a herculean effort at recovery in the first half of 2009.

We're not going to speculate on where the DOW or NASDAQ will be six months or a year down the road. We're interested in hitching our wagon to the sort of real things that will go up in price even if the market declines, real things like crude oil and copper, iron, nickel, platinum, zinc,
uranium and yes, silver and gold.
 

To understand why real things -- commodities -- are inevitably going to go up in value, we need to start with why the value of the U.S. dollar is already going down.

Here in the U.S., an upside down “V” is shaping up in the greenback. The dollar had been in a well-defined downtrend that dated back to February 2002 or July 2001, depending on how you want to read the data. That downtrend ended abruptly in July of last year as the sub-prime credit crisis gained momentum when IndyMac Bancorp became the second-largest federally insured financial company to be seized by U.S. regulators (following an old-fashioned run by depositors that left the California mortgage lender with no cash).
 

The failure of Bear Stearns, Lehman Brothers, Washington Mutual and a host of others soon followed. While these events would normally be considered bearish for a currency, the U.S. dollar acts as the world's reserve currency. Fear of a total, worldwide collapse of the financial system drove investors into dollar-denominated paper.

The Federal Reserve was forced to cut interest rates to essentially zero and flood the system with paper dollars, and the dollar continued to rally though early March, reaching its highest level in three years. Since then, it has become increasingly clear that the government and the Federal Reserve will do whatever it takes—regardless of the cost—to save the banking sector.

To finance the government's $6 trillion bailout, the U.S. Treasury has been forced to print money like there's no tomorrow! The Fed is doing its part by turning around and buying up not just Treasury bonds, but mortgage-backed (“toxic”) securities as well—by the hundreds of billions.

And it's likely to expand what it's willing to buy if the economy stays weak. The nation's monetary base has soared and the Fed's balance sheet has ballooned to more than $2 trillion and we believe that figure will probably top $3 trillion, and possibly even $4 trillion, before all is said and done.

 

That money is going to remain in the system for a lot longer than the Fed might want because the central bankers can't risk another downturn in the economy. Inflation is not out of control yet, but double digit, 1970s-style inflation is inevitable, and soon. We're not headed for Zimbabwe status mind you, but we are headed toward market-disrupting increases in the prices of key commodities.

You can see it already in the bond market which is signaling big trouble ahead. Despite the Fed buying back government bonds hand over fist to keep the lid on key lending rates, yields on 10-year T-bonds climbed at their fastest pace on record.

Bottom line:
 

On top of a weakening dollar, increased demand by China and India for finite reserves of key commodities is also fueling inflation. The most glaring example is crude oil, which has climbed back to $70+ a barrel, even as demand for oil has remained weak among the OECD nations.

Massive spending by the Chinese government is beginning to stimulate their economy and invigorate consumer spending. In June, China announced that its auto sales rose 34% in May, with 1.12 million units flying off dealer lots. Here in the U.S., by contrast, vehicle sales slumped 34 percent to just 925,824 units in the month.

Sales of new, 30-mpg cars might mean Americans will ultimately consume less gas. But in China the cars are largely being purchased by first-time car buyers who are adding to the country's rapidly growing fleet. China's surge in car ownership is a glimpse into the future. Just 3% of Chinese own cars now, compared to 60% of Americans. Imagine what will happen to the international battle for crude oil as China's fast-growing consumer class catches up with us. In fast-growing India, only 1% of population own cars, but that's going to change dramatically as well.

That means incrementally more gasoline (oil) will be consumed, leaving less available for our consumption. On top of China and India, throw in Brazil and other emerging economies where more people are driving each day, and you're talking real numbers. We're not being selfish with that statement, just pointing out that gasoline prices are headed higher for everyone.
 

Here's something you don't hear Wall Street talking about. We're nearly a year past the peak in energy prices, so the year-over-year changes in commonly watched inflation indexes are going to continue to look good for a couple of more months. But assuming oil prices merely hold steady from here, by January 2010, the numbers could look decidedly different, with the CPI once again pushing toward 5 or 6 percent compliments of energy.
 

Take a look at the graph below. What should grab your attention is the lower portion of the graph, which shows the 30- and 60-day rates of change for the index. The graph encompasses much of this decade, a period in which commodities have been in a major bull market. You'll notice, however, that throughout that time, prices were never rising as quickly as they are at present.



We are beyond the point where we're in charge of our own destiny.

Set your watch back 200 years because the last time things were this out of control was in the War of 1812, when the British were burning the White House. The self-sufficient U.S.A. is long gone, and we're now dependent on other nations for our basic survival needs.

These common metals are vital to civilization. Here is a table showing the probable runout date for a few:
 

The first two columns are saying that the U.S. must now import at least half of its supplies from elsewhere, and the situation is getting worse. The last column shows how long it will be before the world runs out. Of course, when runouts occur, desperate exploration will uncover a few more lodes here and there, but basically, each runout will force us to drastically change the way we make things.
 

Between 1999 and 2007, commodity prices nearly doubled. Oil prices quintupled. Copper quadrupled. But trust me…the inflation is just getting started. The reason is simple: demand is outstripping supply. Welcome to the future.
 

Have you noticed that the countries with the greatest reserves of valuable minerals are, by and large, what are politely called “developing nations”? And conversely, the countries that have more money and bigger economies but fewer mineral reserves are the “developed nations” of the West?

Well, all that's about to change. The apple cart is going to be upset, hitting a tipping point where the world's wealth will begin to pour into the needy pockets of the countries that have the increasingly pricey minerals.

Supplies of the substances on the above table are so limited that experts conclude it will be impossible for the developing world to ever reach a standard of living like ours.
 

Those countries with most of the reserves of some particular mineral are due for their day in the sun. Their heyday, actually. Before their stores get depleted totally, they will be able to command any price the market will bear. Actually, in many cases, it will more resemble holding something for ransom.

In addition, as these nations develop, they will start using so much of their own natural resources that their exports will slow to a trickle … or to zero … and they will even begin bidding against us. It won't be a pretty scene. The planet's wealth will begin to shift—in relative terms—to the less developed nations. And to eagle-eyed investors like you.

The Safest, Most-Profitable Place For Your Money in the Coming Years of Hyper-Inflation.

If double-digit inflation is inevitable and the buying power of your dollars is about to evaporate, what should you do now?

The obvious answer (not so easily executed) is to put your money in the things that are certain to go up in value—stocks of companies tied to the limited commodities that are vital to the rest of the world's expansion.

Copper, iron, chromium, nickel, platinum, tin, uranium and all the commodities we've talked about that are necessary for industry and growth but limited in supply—these are the real world things you need to buy and hold on to. As demand increases and supply dwindles and inflation muscle in on the equation, you're going to see the prices of many commodities double, triple and then double again.

Look what happened to commodity prices in general during the last period of runaway inflation:
 

It's about to happen again. Your key to big profits this time around is knowing which companies stand to gain the most.

You may be thinking that, because $70+-a-barrel crude is down from last year's high, that inflation is not a threat. You may be tempted to think that because gold is down a bit from its recent high that the trend is down. But I'm sorry to say that you need to brace yourself for a patch of 1970s-style heavy duty, across-the-board inflation! It's going to happen again, in spades! Only this time, it could be even worse because we are now in a time of convergence of multiple exponential curves: energy, food, water, population growth, mineral and energy depletion are ganging up to create the perfect storm.

Look…when the price of sulphur, (a critical component of fertilizer) goes from $50 to $650 a ton in 13 months (that's an inflationary gain of 1,200%) you know something is up.

The good news is—it's not too late to jump on the commodities band wagon and not only protect the buying power of your nest egg, but grow it by five fold as well! Yes, crude oil is up 100% from its recent low, but if you accept that crude will be trading back at its 2008 high before very long, that represents a potential double on your money!
 

If inflation is going to be as bad as we say, it should be a snap to make a ton of money simply by investing in commodities, right?

Wrong! If you care about risk and asset protection, as well as maximizing your gains, you almost certainly don't have the necessary time nor the resources for the research needed to identify the best of the best. Hitch your wagon to stocks that will benefit from inflation and you will undoubtedly make some money, but Global Commodity Investing can help you make more money!

Our team of seasoned experts and world-class analysts will tell you what to buy and exactly when to buy and sell. Our Model Portfolio and emailed Action Alerts make it simple, and we stay on top of our recommendations so you don't have to watch them minute by minute.

Our team ferrets out the opportunities that will benefit the most from inflation, often the ones that most people don't know about yet, the ones that the hedge funds are just starting to notice, the equities the serious players with the never-lose track records are just starting to buy.

Take gold for example. We believe that given the imminent inflation, everyone should own some gold. But, as a subscriber to Global Commodity Investing, you'd know about an additional, even better way to cash in on gold, a mining stock that should go up, even in the unlikely event the price of gold goes temporarily down.
 

We're firm believers in owning a portfolio mix of established gold mining companies along with promising, smaller outfits that offer the potential for outsized gains though organic reserve additions. We've found a Vancouver, BC-based company that's going to the far ends of the earth in search of minerals deposits.

The company's primary focus is on the Oyu Tolgoi copper and gold deposit in Mongolia's Gobi dessert one of the world's largest undeveloped copper and gold resources. The Oyu Tolgoi tend is actually a series of deposits that stretches for 20 kilometers (more than 12 miles). All told, the trend contains nearly 21 million ounces of gold (do the math, that's about $21 billion worth of gold) measured and indicated as well as nearly 40.7 billion pounds of copper.

The stock has come under selling pressure during the last month on concerns that Mongolia's new President may attempt to alter a draft agreement to proceed with the project. The recent change in government has long-distance investors worried that the new administration will exact a higher share of the wealth from the project.

But western investors are overly concerned. While the new leader may want to foster change, the role of president is largely ceremonial in Mongolia and the opposition in parliament is still quite powerful. We expect a resolution on the investment agreement shortly which will lead to a big jump in share price.

We're big on diversification, which is why subscribers recently received a trade alert about a mid-tiered gold producer with operations centered in Africa. This is one you ought to know about too. The company's two world-class mines are yielding high-grade ore at very low operating costs. The company greatly increased its reserve estimates recently and further increases in those assets are likely to follow.

This highly profitable company produced 260,000 ounces of gold last year and is on its way to mining 400,000 ounces of gold this year and half a million ounces in 2010. All in all, this African gold miner offers one of the best growth profiles in the gold sector yet it's trading at a discount to its peers.

The stock is traded on the Toronto Stock Exchange and here in the U.S. on the pink sheets. Trading around C$9.40 a share, we think a more appropriate valuation is closer to C$13. Whether or not gold prices rise in the near future, we expect, this stock will be worth much more.

Those are just two examples of the 26 open positions in our current investment Portfolio. While not all of them are in the plus column…

Compare those gains against the applicable price of a gold index and you'll see what I mean when I say that you'll do way better investing in our carefully- selected commodity-related equities. Here's just one more example of what I'm talking about:
 

Gold and precious metals aren't the only hot commodity we're following right now. Oil has shot from $35 to over $70 since January. Yet the price of this other major energy source—which usually moves in tandem with oil - has actually fallen 50%. As a subscriber, you'd already know what I'm referring to.

I hope you'll find out soon for yourself, because this huge, almost-obvious profit opportunity won't last much longer. As oil prices continue rising, due to continued strong demand in the developing world, this second energy commodity could switch to the catch-up fast track. After all, despite the U.S. recession, worldwide demand for energy has remained high - thanks to growth in the developing world, notably China. Other raw materials have also made big gains. With oil demand starting to pick up once more, limited supplies, and a potential recovery on the horizon, the price of this energy commodity could easily double within the next few months.
 

Here it is, so you can judge for yourself. No “cherry picking. This is the complete record of the trades we closed last year. Not a single loser:

Pretty good, but I caution you, none of these winning investments are in our Portfolio now. We've taken our profits and moved on to the next opportunities, of which there are many.
 

To help you get up to speed, I've prepared two Special Reports detailing the best investment opportunities now in both the energy and precious metals sectors. I'll be happy to send both of them to you FREE when you let me know you'd like to accept my offer of a NO-RISK trial subscription to Global Commodity Investing. But before you can make up your mind about that, I'm sure you'd like some detail on the service and its cost.

Our mission, quite simply, is twice a month, to alert you electronically, to the best investment opportunities out there in the real world of tangible assets:

• Energy—both fossil and renewable
   
• Key metals—both precious and industrial
   
• Food—including processors, producers and basic food stuffs.

As a subscriber to Global Commodity Investing, you'll get fast-reading, timely, market-driven, action alerts that put you on top of the very latest and best investment opportunities. As you can see from our 2009 record, this is not about day trading. You won't need to stay plugged to your computer. Your holding time will typically range from a couple of weeks to a few months. But often, a new position will show a good profit in as little as two or three days and we may choose to take them. Again, the heavy emphasis will likely be on energy.

As a new subscriber, the easiest way to get started is to check our model Portfolio. In it you'll find a listing of up to 30 stocks that comprise our open positions. They're distributed across five sectors and we keep it well anchored in the fastest-growing companies and commodities of the time –mainly in the energy field, but also committed to positions in the most intriguing and promising gold plays.
 

You'll be kept fully abreast of any changes and updated regularly by email. You'll receive regular bi-weekly electronic updates as well as unscheduled e-mails when there's something worth knowing right away. There's also 24/7 access to our subscriber-only proprietary Website where you can find past issues, background reports, our archive of Action alerts—all designed to make you a second-to-none investment expert in energy and commodities.

You Simply Cannot Lose With This NO-RISK Offer:

We never like to talk about any investment being a sure thing, but we can absolutely assure you that this generous NO-RISK trial offer is a no-brainer! It's the absolute best way to get on top of the red-hot world of commodities investing without risking a penny on what you're paying for.

No, that's not a misprint. You read correctly. Under our No-Risk Introductory offer, if you don't make twice the price of your membership fee, just let us know and you'll get back every penny you paid, no questions asked. What's more, you don't have to wait until the year is up; if at any time during the first two months you don't agree your profits will eventually be twice what you paid, you can just say so and we'll send your money back. All of it. Promptly with no hassles and no questions asked.

But frankly, I will be very surprised if, over the course of the next year you don't increase your investments by at least 50%. Provided, of course, that you actually take advantage of our recommendations.
 

The Hottest Needles in the Energy Haystack

Oil passed its production peak about three years ago. Coal is still cheap, but wary of being (Al) Gored. Clean natural gas is starting to climb. Nuke power is coming back big time. Wind and solar are less reliable, but getting cheaper every year. Biofuels, including syngas, offer dozens of fascinating ways to save civilization as we know it. And engineered geothermal systems hold immense promise (20 centuries of energy right underneath the US)!

On the consumption side, plug-in cars may turn back the clock to an era equivalent to dollar-a-gallon gas. And another drawing board engine we are tracking could make the cost of petrol downright irrelevant.

Yes, all these sound exciting, but The Hottest Needles in the Energy Haystack will bypass them all and steer you straight to the most exciting stocks and commodities of today. One example:

• Energy—both fossil and renewable: the aggressive Wyoming exploration and production driller that has grown its proven reserves 3,000% in the last seven years. Their production has increased at a compounded growth rate of 60% a year for five years.

Plus many more…

Gold and Silver: Prepare for Liftoff

Over the next ten years, you'll need an investment portfolio that will do well during the coming wave of inflation while at the same time insuring yourself against possible bouts of deflation (and war or economic collapse).

By far your best hedge is gold. It's more steady than oil, and in fact, is such a matchless store of value in tough times that Roosevelt felt it necessary to confiscate it to keep people from protecting themselves.

Right now, gold is cheap. Over the past forty years or so, the ratio between gold and oil has been about 18 to 1. At this writing, that ratio is well under 10 to 1. But we expect gold to reach at least $5,000 within a decade.

Often, gold will even overshoot that historical average if inflation is high enough. Thus, gold could easily trade at 30 times the price of oil. That means with oil at $200, gold could reach $6,000.

In Gold and Silver: Prepare for Liftoff, you will find direct pipelines into fast precious metals profits. For instance,

• The world's only pure silver company. It scrounges by-product silver from other mines at fixed prices, then sells it at gouging, opportunistic prices.

Plus many more…
 

CLICK HERE to start today.

Best Regards,

Ian Wyatt
Chief Investment Strategist
Global Commodity Investing

P.S.: I meant what I said about doubling your money. If during your first two months you come to believe that my service is not double your money you can get a full refund on your subscription amount. No hard feelings, no questions asked. Just my promise.

CLICK HERE to get started.