Loading ...Today, something special happened, and very few in the media are picking it up. Lots of stories and news are floating around from dollar hitting new lows, stock market slightly up, September 11 anniversary, and investor confident the stock market will never drop again. For us, the real story is Gold and that’s what will give the attention to.
Before I talk bullish on gold, it is important to understand that I at least have never been bullish on gold before as something worth accumulating. That is because my father has told me stories about how during the great depression the US government confiscated citizens gold from their banks and forcefully purchased them at give away values. Times are different however, and now I believe that gold is something that everyone should have a little bit of it at home and accumulate over time.
Gold today broke 1,000 not out of fear, but because of logic. People didn’t buy gold because the market has been collapsing, or because the dollar has been falling. No, they have been buying Gold because of a real demand by people with wealth and more importantly governments who have realized that the ONLY current hedge to the reserve currency (the dollar) is gold. There are so many reasons to buy gold regardless of what the market does. If A the market picks up steam while governments print more money and keep rates low, gold will be the natural hedge for the hyper inflation that will certainly follow. If B the government removes the safety net, let insolvent companies like FRE, FNM, BAC, C and others that will forever be a cancer in our system fail, the panic will cause gold to fly up. If the probable happens (a mix of A and B) and global economy cruises as we have been for the last 50 years, gold will still have its infinite demand.
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