October 26, 2009 Posted by James Randolph on October 26, 2009
October 26, 2009 – Our nation’s $12.1 trillion debt "ceiling" could be surpassed by the end of November, and American citizens should be aware that our lawmakers can, have, and will increase this limit as they see fit. The horrific effects on our dollar that were caused by these inept policies have not gone unnoticed by US citizens. Long-term hyperinflation and the possible demise of the greenback have influenced many safety-oriented investors to diversify into gold and silver. Spot prices for these metals were relatively flat this morning, which prompted some investors to supplement their holdings as the current rally pauses. Certified gold coin prices remained dormant this morning as well, but economists at the Wall Street Journal expect that the gold spot price could surpass $1500 within the next two years. This would give substantially more value to the already highly coveted American Double Eagle coins, as well as other US-minted gold coinage.
The inability of our economy to rebound after the turmoil of the last three years has underscored the need for investors to diversify into safe-haven assets, so the potential profit that gold could render is worthy of consideration. As our nation nears its debt "ceiling" of $12.1 trillion, many American investors are searching for an asset that offers financial independence if our dollar becomes internationally insolvent. If lawmakers do not raise the debt maximum, which they have done eight times since 2002, they will become unable to operate. Similarly to an overextended shopper at the head of a grocery line, they will be forced to run for the nearest payday advance, and go into even more debt. The powers in Washington seem perfectly content with this scenario, and they are on pace to add another $10 trillion to our national debt over the next decade, so our nation’s taxpayers are dissatisfied. Until long-term fiscal imbalances are addressed, our nation’s investors will most likely continue to purchase American-made gold coins, like the Saint Gaudens, and the Lady Liberty Double Eagles.
Senior Staff Writer – Certified Gold Exchange