Buying gold as insurance against economic calamity could never be more relevant than it is today. Posted by James Randolph on June 01, 2011
Tomorrow’s winners will be those who buy gold today.
June 01, 2011 – Buying gold as insurance against economic calamity could never be more relevant than it is today. Week after week we are presented with rosy economic news only to have it refuted days later. The good news is that a growing number of Americans are able to see the truth behind the government deception.
That is easy to explain. Today the typical household is spending almost 10% of their pre-tax income on gasoline, according to an AP release, more than “they spend on cars, clothes or recreation … Economists say the gas squeeze makes people feel poorer than they actually are.”
Well, maybe it makes them feel as poor as the actually are. Those fortunate enough to have jobs have seen their wages stagnate while they shelled out $800,000 for each new job created by the stimulus. For the average Joe it is abundantly clear that the buck goes no where near as far as it did just a couple of years ago.
Of course every one of us had a part in the financial crisis. Somewhere along the way we all benefited from a burgeoning Federal government and we all stood in line for some handout. It does no good today to sit around debating what went wrong, however. Tomorrow’s winners will be those who take strong action today.
Victims of the spate of natural disasters are teaching us all a lesson – the government can no longer afford to bail out individuals who failed to prudently protect themselves. Those who had too little insurance will quickly find that their wealth has been irreparably depleted. The same will be true for those who fail to insure their wealth against economic calamity.
At the current gold market price our vastly inflated monetary supply has virtually no backing. To get to a point where government reserves of gold backed just 25% of the supply the price would have to climb to nearly $2,400 per ounce. The fed has pumped so much cash into the system that the greenback looks every bit like a bubble set to burst.
The gold market has no where to go but up relative to the US dollar. And paper assets have nowhere to go but down relative to gold. Those who do well through the coming years of economic hardship will be those who had the foresight to protect their wealth with certified gold.
Senior Staff Writer – Certified Gold Exchange