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NEWSFLASH  INFORMATION

** US BUDGET DEFICIT **

2010

July 4th "Happy Independence Day!" Markets closed on 5th.

 -> May 3-5 IMF support $1T credit line for EU debtors.
-> February 23rd. FDIC reports that no. of banks in US
on the brink of collapse is 702. Highest in 16 years.
-> February 18th: Reuters article -
"Investors Shun Paper Currencies, Pile in to Gold."
-> February 1st. New budget to be 3.8 Trillion Dollars.
RECORD budget deficit for 2011 - 1.56 Trillion Dollars.
-> January 22nd. Congress plans to raise the US Debt limit
by a further 1.9 Trillion Dollars. To 14.3 Trillion.
About 100% of US GDP.

1/1-12/31 2009:
Gold + 26%, Silver + 50%
Platinum + 47%, Palladium + 98%
S&P 500 returned 23%.

-> December 10th. House Democrats prepare to raise federal debt ceiling by another $1.8Trillion. Almost twice amount anticipated for 2010.

-> November 3rd. India buys 200 tonnes of Gold for $6.7 Billion, from International Monetary Fund.

-> October 23rd. US Senate seeks to increase National Debt to a record
$13 Trillion.

-> June 1st (Bloomberg) Northwestern Mutual Makes First Gold Buy in 152 Years. Accumulating almost $400 Million. And Zore said the price could double or even rise fivefold if the economy continues to weaken. "Gold just seems to make sense; it's a store of value", CEO Edward Zore said. "The downside risk is limited, but the upside is large", "We have stocks in por portfolio that lost 95%, Gold is not going down to $90."

 Obama Says U.S. Long-Term Debt Load ‘Unsustainable’
-> May 14th (Bloomberg) -- President Barack Obama, calling current deficit spending “unsustainable,” warned of skyrocketing interest rates for consumers if the U.S. continues to finance government by borrowing from other countries.

-> May 12th. Warren Buffett:"There is no free lunch in Economics, inflation to come will be worse than in the 1970's." Remember 21%?

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 Citigroup: Gold should be $2,000/oz

"Frankly, we're surprised, that gold is not already at $2,000 an ounce," declared Citigroup analysts John H. Hill and Graham Wark.

"Our sense is that gold has been temporarily depressed by a series of ephemeral, short-term trading dynamics that served to mask strong physical off-take in what is ultimately a tiny market," the analysts said. "We continue to regard as a barometer in the grand battle between hard assets and paper assets."

Benefiting in "Gloom & Doom" and "Muddle-through & Monetization" scenarios

Should the U.S. lapse into a deep recession that spills over to BRIC countries, Citigroup advises that "gold and precious metals would prove to be one of the few safe havens for capital preservation particularly given likely low to negative real interest rates in such a scenario. In this case we would expect gold to double or triple from more current levels.",,,

" The Time To Prepare For A Storm Is Before, Not After."
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WHY KASTLE & HAWKE?

KASTLE & HAWKE is an International Brokerage dealing in physical Precious Metals. K&H are 'Specialists.' This is our only business. As other investments such as Real Estate and Stocks have fallen, investors are now taking positions in Gold, Silver, Platinum and Palladium. They no doubt feel that Worldwide uncertainty, financial instability and looming high inflation, provide them with a great opportunity to potentially profit from investing in a millennia old Safe Haven: Precious Metals.

Accounts may be opened by any person domiciled or entity registered within the United Kingdom, United States of America, Canada, the European Union and Hong Kong; who is legally entitled to do so. As the US Dollar is the worldwide currency for Precious Metals, the remarkable fall of same against the British Pound for example (approximately 50%) make dealing with a US based brokerage a smart choice.
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-> IF you have in excess of 100,000 Pounds Sterling or 250,000 US Dollars to invest, please ask about our 'cost-averaging' and 'laddering' - techniques.

We have Brit ex-pats on staff to assist with the opening of your account and to ensure that all transactions are processed smoothly.

Please remember: We are only as far away as your own telephone/email.
The World is 'a small place' now, and International Trade is easier than ever.

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Tired of Futures and Options?
Ready to potentially accumulate wealth rather than speculate?? 

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Once your account is opened you will have instant access to our Metals Dept, and have the ability to purchase physical Precious Metals outright for home delivery or we offer a Leverage Purchase Program. Your choice.

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Having a fully funded account means that you can enter the physical Precious Metals market whenever you feel the time is right. Establish one today.

A simple phone call to your K&H Account Executive is all it takes; not only will you be able to place an order at your convenience, you will also receive an immediate price confirmation.

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WHY PRECIOUS METALS?.

With the continuing uncertainty of our unstable economy, the plunge in the US Dollars value ('Fiat Currency'), we know you are constantly searching for investment vehicles that may provide you with long term growth potential and capital preservation. 

K&H will familiarize you with one such investment area; namely,

physical Precious Metals.

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* Precious Metals usually move in the opposite direction of the Dow Jones.

Example: Back in 2000's Bear Market, the Dow lost almost 31%; Gold

increased by almost 100%!

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* Since the 1980's, the demand for Silver has far exceeded the supply.

As investors know, this condition usually precedes an upward movement

in the price of any product.

* Precious metals are a time-proven hedge against Geo-political uncertainty both at home and abroad. During a time of crises, investors normally flock to Precious Metals. A Safe Haven in times of turmoil.

* Rapidly emerging markets - like Brazil, Russia, India and China (The 'BRIC's') - are producing both users and consumers of Gold and Silver by the multi-millions. Increased demand; same supply, normally result in an upward movement on prices.

.* The Federal Reserve lowered interest rates three times in 2007. Four times in 2008 and again in Jan. '09. This too can be positive for Precious Metals. Lower rates decrease the popularity of interest based deposits and increase investor demand for Precious Metals.

Set Your Account up For Income.
Take Home Profit Checks.

* The 'Fed' injected some $700 Billion into the Global financial system in October 2008/9 and the ECB and WorldBanks another $500 Billion (both taking non-voting equity positions in failing Banks); in an attempt to provide more liquidity. This was followed by another $700 Billion, and another $200 Billion. AIG Insurance was bailed out by both The Fed and State of New York to the tune of $180 Billion (as of March '09.). The Sub-Prime Mortgage debacle has caused close to $1,550 Billion in losses to Financial Institutions, Banks and Brokerages,,, so far. Wells Fargo Bank bought Washington Mutual and Wachovia. BankAmerica buys Merrill Lynch. Lehman Bro's goes bankrupt.
Citibank is effectivelly controlled by the US Gov't now. Printing money is inflationary and very positive for precious metals. At the end of the day - hard assets (particularly Gold) are THEE real and only store of value.

The new US President Obama is intent on re-booting the economy.
Expect about a Trillion Dollars to be spent by way of tax cuts and improvements in Public Works programs. Then expect about a Trillion Dollars in new taxes - aimed at the Top 2-5%. The Fed stands poised ready to bailout more industries. This bodes for high inflation down the road, which is normally positive for Precious Metals. President Obama's proposed budget for 2010 is a whopping - $3.5 Trillion Dollars. As of March '09, the debt to GDP ratio of the United States stands at a massive (and record) 60% and
may climb to as high as 90%. Also, consider the following:

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* Icelandic Banks have defaulted and have reached out to Russia for a bailout. The United Kingdom provides $3 Billion in financing to ensure British depositors accounts held in Icelandic Banks be guaranteed.
Bank of Ireland, PLC; Allied Irish Banks, PLC and the Royal Bank of Scotland, will effectively be taken over by their respective Governments.

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WHY NOW?

More and more economists and financial experts agree that we are in a severe recession; and a resurgence of inflation. Stockmarkets worldwide are in turmoil due to the 'Sub-Prime' lending debacle in both the USA and UK. Unemployment is rising (10% in the US, 19% in Spain). Record-high oil prices.
Inflation is about to get out of control, which again is positive for Precious Metals.

Credit markets are being squeezed and the housing 'bubble' has popped.
The USA was the first housing market to bust. The United Kingdom is now suffering a similar fate.
Next? Mega-mortgages will 'reset' their interest rates in 2010/11, with many
seven-figure homes to go into foreclosure. The commercial real estate market may suffer the same fate as the housing market.
Health Care Reform in the US will cost much more than the $887 Billion the US Congress has stated. Some estimates say the 'real' figure is $2.6 TRILLION, due to the simple fact that many of the "savings" and "cuts" will
never happen. The Fed is running the printing presses 24/7.
All of this will severely impact the value of the paper US Dollar.

-> So WHERE are you investing your hard earned Pounds, Euro's and Dollars to at least have the potential of a decent return? Please read on.

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It is agreed that Gold, Platinum, Silver and even Palladium are all leading
tangible assets, and as such, worthy of serious consideration for your
investment portfolio and/or retirement. Precious Metals will never go to zero. Stocks will - and many have! Paper v Precious Metal? Your choice.

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K&H, Inc. will provide you with safe and convenient methods to purchase physical Precious Metals - (outright or via our Leverage Program), - and allow you to take profits on your holdings when market conditions allow.

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Timing is of vital importance when investing. Fortunes have been made throughout history by those with the foresight to look past their nose and down 'the road' a year or two. Do you see the economy getting better or worse by then? If worse, once again, WHAT are YOU doing to protect your hard earned assets in these uncertain times?
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IF you forsee higher prices in the future - because of economic instability, inflation, Worldwide tensions (Iran/Israel, etc.) it is our opinion that whenever there is a 'dip' in the market, you should be a 'buyer.' Unfortunately many investors sit-and-wait for a big 'run-up' in price to occur. Then jump in, and wonder why they bought high! Professionals buy 'the dips' and sell to 'amateurs' - and profit mightily. It has been estimated that amateurs are wrong 90% of the time. So what side of the market would YOU rather be on. Amateur or Professional? Hopefully, that's an easy question for you to answer.

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Markets consolodate (move sideways) approx. two-thirds of the time, before a break-out. Again it's our opinion that to potentially profit, an investor must be invested/positioned in a market - before - the move, not after. We will render the best advice we know how, at all times. That is our promise to our clients.

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Please peruse our 'Virtual-Brochure' - this website.
There is a plethora of information herein: fact-sheets on gold, silver, and other Precious Metals. Also: charts and real-time quotes, sources of reference, information on 'fiat' currency, our 'Leverage' Program, and please download our New Account and new client information, which explains our programme.

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Finally, we are looking forward to a mutually profitable relationship in 2010.

Should you deem it necessary for any reason; to hear from us personally,     do not hesitate to contact K&H at any time.

Sincerely,

KASTLE & HAWKE, Inc. 

110 E. Broward Blvd, Suite 1700, Fort Lauderdale, FL 33301