This month we look at the world financial crisis basis one primary need -- Food! One of the most frequent feedback topics we have received most recently is whether gold (or silver) is in a bubble and how do we know the deflationists are wrong. Also, why is gold hitting new highs, with all of the problems in Egypt?

These topics basically tie together, and first let us look deeper into the Egypt situation. One of the chief causes of the Egyptian revolution was about food.

Some have asked why gold (silver also) is not hitting new highs with this political backdrop, and we do have an answer. First, in a few days, by the time this report is published or perhaps soon after, gold may very well be hitting new highs. However, our long experience has taught us that once the paper traders have control, which now seems to be the case, then even geopolitical events that would obviously add to financial stress do not produce the logical result—new highs in precious metals.

This is an aspect to keep in mind as we continue through this bull market. If we reach a point where the metals are consolidating and/or “selling off” and a geopolitical event takes the metals higher in short order, you can pretty much be assured that the paper bugs are losing control of the market.

After revising our outlook to provide even more investment ideas we have two companies already suited for the mid tier portion of the model portfolio. One is primarily a gold company, and the other is a silver company that has been featured favorably in The Morgan Report previously. Also we updated several of the holdings in the portfolio and we must state all looks good going out in time.

We discussed the Cheviot Sound Money Conference and how gold/silver could be put back into the monetary system. A quick review of the Vancouver Resource Conference was also noted.

One of our main writers did a large feature on ETF's and ETN's as well.  This is only Part 1 or a two part series, and an objective overview of various ETF's is examined.

Finally we wrote a new missive on how to use these reports to maximize your returns based on your age, experience, cash flow, and risk tolerance. Most of our reports average 11 to 12 pages, but this month we went 21 pages.

David Morgan

Feb. 8, 2011

archive.aweber.com/silverfreelist/1jn.x/h/Silver_Investor_This_Week_s.htm