Optimism and pessimism alike are based on ones level of wisdom. While optimism looks for a better future in an anemic economy, pessimism believes that things are bad, and they will likely remain bad for a long time. The later may actually be more of a realistic picture in today’s economy. However, both have created such a global paranoia prevalent today, that as individual rights lessen, economic realities become harsher, and politics break.
Under such conditions, survival is the very basic necessity for any nations and its habitants. But, to survive, one has to have financial leverage—a subset of economy. Another word, money is needed for the specific individual or family for their survival.
As the significant factor for survival becomes fragile, there’s indication of a troubled economy=less survival, more risk taking. When gold is working and waving like a giant flag that something is amiss, it’s a sure sign, “hey, your survival is at risk”. When the Federal Government spends $3 for every $2 it collects, and borrows the rest, increasing the US debt by $20,000 every 3/10 of a second, it lowers the value of the US dollar. This pushes the country into crisis mode. Then, as the taxpayers are saddled with the risk of insurmountable losses, they are the ones that have to take on all the risk. The very structural failure in any government, as well as mismanagement is creating a picture today that speaks a thousand words. With falling currencies in the world, alert in gold, silver and platinum prices will continue to rise. Driven by a shift away from depreciating paper currencies and massive economic struggle, China, Mexico and India are keen to this and are buying gold at an alarming rate.
Of course finance is speculative. But it doesn’t take much to see the picture of how the economy has sunk without protecting its citizens. And yes, there will always be those that speculate gold will go higher, and then there are those that say it won’t. The significant factor remains in the weakness of the US dollar. Yesterday’s gold’s pendulum turned up the heat as speculators watched it move up to a near record high close to $1,600 an ounce, completely unaffected by the talk of inflation or deflation. Gold prices were up nearly 500% in the past decade, a period when reported inflation in the U.S. was tepid. Gold did not crater, amid the global financial crisis, economists and other media readers fretted about deflation, a scenario that should have sent gold prices plunging. The simple difference is, the financial actions of economy dictating the value of currency up or down.
With the anemic recovery the US keeps mushrooming, it will continue to affect the global capital markets as well as political events that will further “spook” both consumers and investors to make a decision to move toward a safe haven. The movement away from currencies will remain the dominant factor to impact gold and precious metals prices, as well as central bank buying and China. For those pessimists who shout that gold has no value and you can’t eat it, are totally missing the point. Anything that can be traded has value. Gold doesn’t spoil or tarnish and there is a limited quantity available. In the meantime the value of gold is going up and up and there is no end in sight. As long as Asian wealth increases, the demand for gold will increase, and with it it’s value.
“We can’t change the direction of the economical wind, but we can adjust your sails to reach the destination of your security in gold investment. It’s the most valuable hedge against the fiat that tends to hold its value over time better than the other forms of currency and particularly suitable for savings” says, President Ron Fricke of Regal Assets.
Source: http://goldcoinblogger.com/gold-is-skyrocketing/#more-3276
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