Dear Friends,
One of my oldest client Mr. Nanak pointed out while he was going through our old financial predictions. This what we mentioned on Jan 14, 2005.
Thanks & God Bless, Mahendra Sharma
From: mahendra <mahendra@mahendraprophecy.com
Subject: IMPORTANT - MUST READ THIS
To: "Mahendra Sharma" <mahendra@mahendraprophecy.com
Date: Friday, January 14, 2005, 3:10 AM
Dear Members,
It is time to expound on a few IMPORTANT POINTS so that you may clear your doubts and have an indication of the direction in which to trade for the long term. Following are several issues which I believe will be helpful towards this end: Many of my followers are a little confused in regard to my recent remarks about the strengthening of the US Dollar and weakness in metals. Let me confirm that the dollar will indeed gain, but this upsurge will not be sustained for long. In actual fact, the maximum period for which the dollar could stay up for three months and can remain stable for seven months, after which it will be relegated to the sidelines once more. Likewise, the Euro and the British Pound will also not perform well (I SEE ALSO THESE CURRENCIES COLLAPSING). It is therefore clear that GOLD WILL BE THE ONLY PHYSICAL ENTITY THAT SHALL TRIUMPH AGAINST THE CURRENCIES. Consequently, THERE IS NO NEED TO BUY THE US Dollar or sell the Euro: just buy the GOLD.
GOLD VS DOLLAR - It is quite apparent that the dollar factor was present in the last week of December. It is still there in the current month of January and it will in fact persist into the first two weeks of February as well. During this period, two powerful boxers will be squaring it out in the ring [US DOLLAR vs. GOLD]. Though gold may take some pretty strong punches at first, it will absorb the bashing quite easily and eventually emerge victorious by mid February. This remarkable resilience of gold is owing to the fact that compared to the dollar, it is the real thing and also part of nature. Very soon, the world shall witness the Dollar rising simultaneously with gold, though the major rally of gold prices will be from mid 2006. After this, gold will reach $1000. In the preceding statement, I am talking about a strong dollar but it will still not remain strong in the long run. It may gain 12 to 15% against European currencies but then it will fall against Gold. Silver will be the key investment area to watch for the next three years. I do not want to predict the price target but one thing is sure; its prices will surprise the investor community. Just be patient and wait for the right buying opportunity and don't short silver at all. Soon in the next few months silver will start trading above $10.
I WOULD LIKE TO BRING THREE IMPORTANT FACTORS TO YOUR ATTENTION:
1. GREAT CRASH IN WORLD STOCK MARKET INDEXES - Once again I am waiting for the occurrence of a major crash of all markets, which is now not very far. Nature’s wave is gradually trying to grasp it and pull it down to where no one can come forward in its support. The crash will render a lot of people bankrupt and many will go into depression. Major banks and financial institutions as well as funds will close down overnight. People will queue outside of these luxurious offices and demand a refund of their hard earned money. The USA and EUROPE will be the worst hit by this crash. Though the Asian markets will also be severely affected, they will survive. Please note that my intention is not to scare anyone; I am merely exercising my duty to warn you.)
2. BURSTING OF THE HOUSING BUBBLE – A few years back I predicted a great rise in property prices in the USA and Britain. The period for thriving is now over and we are very close to the bursting of the housing bubble. After this, we shall not see the current valuation for next 29 years. This burst will have an immense negative impact on the banking/financial industry. Due to several reasons some of which I am mentioning in this letter, there will simply be no buyers for properties.
3. CRASH OF THE VALUE OF THE US DOLLAR AND EUROPEAN CURRENCIES - Any time from 2006, a big crash of the value of the US Dollar will occur. The value of money will plummet by up to 90%. This will be like a revolution in itself and it will be very interesting to watch what the role of the government and the Federal Reserve will be. The melt down in the value of various currencies will be a clear sign of inflation but the question is ‘who will have any buying power?’ The situation will be combination of inflation, deflation, recession and depression, a phenomenon I choose to call "slepplession".
4. NATURE’S UNREST AND AN UNCERTAIN WORLD SITUATION - We have seen the terror of nature unleashed by the recent tsunami. I have been warning of a natural catastrophe. For instance in 2002 World Prophecies, I stated that weather conditions in the whole world would change and disrupt people’s lives. Every so often, nature presents circumstances in which not much can be done. (It is like when a child spills coffee on his father’s suit. Since the deed is already done, there isn’t much that the father can do about it). Natural disasters will therefore continue to play a devastating role in world affairs. I don't want to scare people and I shall therefore not specifically name the region where the next major calamity will befall. Suffice is to say that by June 2005, two major world cities could be destroyed by nature.
Thanks & God Bless,
Mahendra
www.mahendraprophecy.com, 12 Jan 2005