Home > Uncategorized > Gold Bubble? Hardly.

Gold Bubble? Hardly.

While it seems that calls for a gold top and FED efforts to reflate the economy with QE are running neck and neck, gold has not reached a top yet.

The governments of the world have been making promises that their tax coffers can’t keep. Social Security in the United States is a prime example of this.

For many years, before the advent of widespread alternative media, there was less publicly available information available to counter the government party line.
Now, however, the public has information to a wide range of sources regarding government policies and the economy.

Many people look at the slow motion disintegration of the EuroZone, the continuing economic stagnation in Japan, etc. and seek protection from failed government policies.

One of the primary ways many people seek to shield themselves from the failure of government economic intervention is through purchasing gold (and silver).
Gold has been in a bull market for over a decade, and despite calls to the contrary, will continue to rise in price as denominated in fiat currency.

As governments have responded to the current economic crisis with more money printing, people have begun to lose faith in the whole fiat currency system. Recently, via King World News, Peter Schiff said:

When asked about how the great money printing experiment will end Schiff responded, “It’s going to be a disaster for everybody who put their faith in this system, in the fiat monetary system.  There are people who are going to be wiped out, completely wiped out.  People jumped off of rooftops in the crash (of 1929).  Lives are going to be ruined because of this fiat monetary system.  What if we end up moving towards a complete totalitarian, centrally planned economy?  These are some dangerous times we are headed for.”

In light of continued government failure to rein in deficit spending, incompetence, failed efforts to manage the economy, etc., those who doubt the promises of government and distrustful of fiat currency will continue to seek to protect their savings. Increasingly, those people will convert their fiat money to gold and silver – which, at least for now, will support the current bull market in gold (and silver) and prove wrong those who say the market has topped.
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