GOLD PRICES HIT RECORD HIGH!
GOLD just hit a new record of $1579.70 (July 13, 2011).
The old high was April 29, 2011.
Between the European debt crisis (Greece, Italy, Spain, Portugal, et al), the debt ceiling “debate” fiasco in Washington, the latest Fed hints about maybe, possibly being open to more easing, and talk from the administration of yet another bail-out…the new buying isn’t that surprising.
What’s more, Fed Chairman Ben Bernanke is giving his Humphrey-Hawkins testimony, so there’s a possibility of more stimulative headlines ahead. Bernanke will face some tough questions during his semi-annual hearing before the House Financial Services Committee. He will be asked directly to defend his past monetary decisions, which have proven to be disastrous. Can’t wait to hear how he dances around those questions.
Okay, let’s keep making the same mistake over and over and over. Isn’t that the very definition of INSANITY? Hey, it worked so well in Greece, didn’t it?
China’s second quarter growth exceeded forecasts, as its gross domestic product rose 9.5%. On the one hand, this eases the fear of the Chinese economy coming in for a hard landing, but on the other, it raises concerns about inflation. The Chinese central banks have raised interest rates several times this year with the last one coming just last week. Today’s numbers are expected to strengthen Beijing’s resolve to curb inflation.
Who’s buying gold? China, Russia, and ME.
I jumped on the bandwagon ten years ago despite warnings from friends and family that this was risky behavior. Now, all these same people have lost over two-thirds of the money they “invested” in the stock market. At the moment, the market has been artificially inflated and is long overdue for a major correction,ie, burst bubble. Anyone remember what happened when the housing bubble exploded? I thought so. Has it recovered yet? Nope! In fact, another downturn is expected. You can count on it. Until jobs are created, salaries increased, government spending slashed, and taxes cut, you can expect the housing market to continue to plummet. Unemployed people simply cannot afford to buy houses.
I HIGHLY recommend buying gold as soon as possible. For those of you who think you “missed the boat” I say, “NONSENSE.” Savvy economists are predicting gold will reach $3000 an ounce within the next few years. When you adjust for inflation, this is not an unreasonable assumption. Of course, I encourage you to speak to your financial or tax advisor before purchasing any gold or silver.
With 2012 nearly upon us, you need to stock up on three things: FOOD, WATER, and GOLD.
Unless, of course, you think the clowns in Washington are going to kiss, make-up, and start singing, “All Ya Need is Love.”
I’m just saying….
