Precious metals are bound to continue their secular bull market so long as the United States government is wed to its commitments to deficit spend. These deficits can no longer be financed by foreign debt as many foreign investors are starting to fear the U.S. Treasury market (http://www.nypost.com/p/news/business/bernanke_facing_big_bond_bubble_Z9xXC6dZUYizedGLyWHFoM)and the weak Federal Government credit rating. Those investors are becoming aware of the massive currency inflation that has been going on in America, and that is expected to pay for further bailouts and stimulus and deficits. That leaves the Federal Reserve and the tyrannized tax payer to finance the outrageous deficits being amassed by the Obama Administration. The Fed will print more money.
Some say this fundamental trend will change as “rationing” kicks in with health care. Of course “rationing of care” is just a euphemism for “denial of care.” Surely some money may be saved there as the Obama administration kills off seniors and baby boomers by denying them the care they thought they were paying for with their Medicare/Medicaid contributions of the last few decades. But the net effect of ObamaCare will be bigger deficits, not savings, even with his draconian planned denial of care (rationing).
Yes, the United states is so bankrupt now that even the health care take over and rationing suggested by our Marxist big spending President with his gargantuan new Marxist healthcare plan will not be enough to undue the damage already caused by decades of U.S. Socialism and deficits; deficits that were supported by both the Republican party and Democrat Party. Bankrupt, bankrupt, bankrupt. See this short video: http://www.youtube-nocookie.com/embed/EW5IdwltaAc?rel=0 We are worse than Greece.
What will happen as QE3,4, and 5 kick in over the next decade? What will happen as currency inflation is embraced as the solution to create jobs, pay off debts, and create wealth? The opposite of what is supposedly sought will occur. Jobs will be destroyed, the value of the dollar relative to commodities will plummet, wealth will be destroyed, and the United States will sink into poverty and chaos as have all nations that have tried to “print wealth”. It doesn’t work. Furthermore, the results in the precious metals market are predictable, precious metals will become ever more valuable in dollar terms. Other countries on our path include France, Spain, Greece, Italy, Ireland, and Portugal.
If printing more money were the answer Zimbabwe would be the wealthiest nation on earth. They sure knew how to print money, but it did not make them wealthy; rather it made them poor and ultra miserable. (see: http://articles.cnn.com/2009-01-16/world/zimbawe.currency_1_zimbabwe-dollar-south-african-rand-dollar-note?_s=PM:WORLD)
Disney explained the problem of inflation in this short video:
The secular bull market in precious metals has years to run. So long as the U.S. government and the Federal Reserve continue on their current courses the dollar will lose purchasing power. The dollar is not a reliable store of value. It is time to shift some of your dollar assets to silver and gold. (See: http://www.kitco.com/ind/Handwerger/20120820.html).
The only thing that has changed is that the world economic problems are getting worse. The world governments continue to follow the same failed programs that got us into this mess in the first place.
The billionaires are starting to climb back into precious metals now. That might be an indication that it’s a great time to buy. (see: http://news.goldseek.com/GoldSeek/1345032000.php) If I were you, I’d place a bet with 5% to 10% of your net worth now on precious metals. Just buy and hold. Relative to an ever more plentiful dollar precious metals are likely to soar in price over the next decade.
Investing in real estate, stocks, bonds, and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence and study before making any decision to invest. I am not an investment adviser. Precious metals is not for everyone. I am a precious metals broker and sell precious metals. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I make that you will realize any return or that you will not see losses. Beware, all commodity markets and other markets carry risk of loss.