It IS Not Too Late To Invest In Gold And Silver

If you have not been hiding in a cave for the past few days and weeks you would have seen that gold and silver have gone up continually. Throughout this same period of time, there has been an expert either on the tube or in print illuminatimg why gold and silver can’t keep going up. In the past I might have concurred, but we live in a new world were new rules are being carved out. If you base your analysis of investing in gold and silver on historical data, you are missing the bigger picture, even though it hard to believe anybody could.

Things have dramatically changed in the financial world, major countries are in debt beyond what they can possibly pay and have resolved that the only way to reduce their debt is to devalue their currency. The United States has apparently taken this approach and the world’s reserve currency has plunged in the previous month hitting multi year record lows against many currencies. This is not transitory as the Federal Reserve has already announced that it plans to turn on the printing presses in order to give the economy a jolt The evidence suggest that the previous .3 trillion printed has done nothing to make economic activity pick up, and this latest round most likely will have the same final result..

It is probable that the objective really is different then what we are being told and the money printing is purely a means to devalue the currency to reduce the value of the debt. The U.S is running budget deficit of .5 trillion a year and despite of how much the dollar is devalued, paying of the debt seems illusionary at best.  The problem is that other countries are not to happy with the Federal Reserve’s approach and promised to not let their economies to be destroyed by high currencies, creating the potential for an all out currency war were no one wins. This is reminiscent off what occurred during the great depression when industrialized counties adopted  protectionist policies to safeguard domestic interest. It was different then because the world was mostly under the gold standard and could not utilize currencies to fight the war. . Today currency in place of policy is the weapon of preference.

Were does this leave gold and silver? It is one of the only investments that merits attention at this point because as countries become more desperate so will their measures. Gold and silver will act protect you purchasing power and wealth when many currencies are on the precipice off the abyss. Some may argue that this will be over shortly, the evidence imply it is only the beginning. Yes, gold and silver have gone up significantly, but this time is different as investor flock to the precious metals as a safe haven for further financial instability.

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