The gold market cannot remain tentative much longer. Posted by James Randolph on April 21, 2011
Time is running out to find shelter in the gold market.
April 21, 2011 – The gold market cannot remain tentative much longer. As weak a statement as the S&P outlook downgrade was, it none-the-less was the first public statement by an American firm that the emperor is stark naked. And that coming from the true red-white-and-blue service that upheld triple-As for the junk that caused the crisis.
The government’s arrogant dismissal of its significance does not bode well for its continued AAA rating. That is no small threat because a reduction in rating of just a single step would trigger a devastating increase in interest on our debt. George Gero, vice president with RBC Capital Markets Global Futures, told the Wall Street Journal the downgrade “is a disquieting, game-changing thought for a lot of the world.”
As the dollar slides against some of the most unlikely currencies – the Colombian peso is up 44% against it – the rest of the world is turning to gold for safe haven. In addition to stockpiling huge amounts of gold while surreptitiously converting its US debt to commodities China has stepped up its efforts to globalize the yuan. The times they are a-changing.
Anthony Mirhaydari reports in MSN Money that a team from Standard Chartered Bank projects that “gold is moving into a new ‘super-cycle’ [with] prices of $2,107 an ounce in 2014 as its base forecast.” Furthermore, “statistical modeling suggests a possible ‘super-bull’ scenario of gold prices rallying up to $4,869 in nominal terms by 2020.”
David Levenstein, a leading expert on investing in precious metals, says “We are currently in the midst of another monetary crisis brought on by many of the same reasons that brought on previous disasters … [that] has the potential to be the worst we have ever experienced.” He strongly advises having gold “in your investment portfolio regardless of what your adviser tells you.”
The government is in the hands of the super wealthy who are bent on sucking the last drop of blood out of the economy with complete disregard for the country’s future wellbeing, so naturally they are fighting tooth and nail to keep our money out of the one true safe haven. They regard us as no more than foolish, deluded sheep they can drive anywhere they choose.
It’s time to take our cues from the rest of the world and save ourselves from their self-destructive greed. Time is running out to find shelter in the gold market.
Senior Staff Writer – Certified Gold Exchange