Fundamentals That Will Drive Gold In The Future
Fundamentals That Will Drive Gold In The Future
1. Central bankers and politicians may chose to ignore the ascent in the gold price, but its rise is a symptom of broad public recognition of ballooning deficits and overextended balance sheets. Until real economic growth returns and deficits and debt burdens are addressed, the upward trajectory of the gold price will likely remain intact.
2. The Fed is in a desperate position and instead of letting depression take its course, the groundwork of which was caused by the Fed, Wall Street and banking, it is again rolling the dice intent on extending and buying time. If the Fed and its owners refuse to bite the bullet great inflation will ensue dependent on the size of QE2. If it were to stay at $600 billion inflation would increase. If the Fed is forced to increase the injection to more than $2 trillion there will be far more inflation. Unfortunately, we cannot depend on government statistics because government has a track record and propensity for masking the truth.
3. Ireland recently signed up to a $115 - billion aid package to plug spending gaps and rescue its banks but concerns remain about the financial health of Spain and Portugal. The European situation is still very uncertain. Investors are still very concerned about what happens next, what happens to other countries, what happens to the Euro?
4. Economic tensions between China and the U.S. are growing more hostile, a fact that is bullish for gold . Chinese officials have criticized Fed Chairman Bernanke and U.S. economic policy as a whole, fending off aspersions that China is keeping its currency artificially weak.
5. Americafs trading partners are moving away from their dependence on the U.S. dollar, evidenced by the recent announcement that China and Russia will begin
conducting trade in their local currencies.
6. We've seen good physical demand from China and India, both from jewelers and investors.
7. The International Monetary Fund has slowed the rate of selling its gold by 40 percent in October from the previous month, as interest among central banks to own the metal increased as a hedge against economic uncertainty.
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This means you have to act in your own self-interest to preserve your wealth. You have to think outside the box. That means you have to be in gold and silver related assets. You have to leave the herd. You have to think for yourself. That means you do not listen to Wall Street, CNBC, CNN and Bloomberg, nor our politicians and bureaucrats. These are the same group of elitists that would have you believe they will have economic recovery by creating massive amounts of money and credit.The financial world has turned to gold, which is up 24% and so should you.
If you are interested in diversifying into gold and silver in the amount of $10,000 or more please feel free to call or e-mail me. I am interested in answering all your questions and providing you with all the information you need so you can make an educated and confident decision that is best for you. My e-mail address is [email protected] and my number is 877-864-1072.
Mike Weiner
Swiss America
Senior Account Executive
877-864-1072
[email protected]
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