subject: Building Wealth With Gold, Silver, And Other Precious Metals. [print this page] Gold is an alternate currency in the world today! Thats it folks, when the value of paper currencies are worth less, then gold dramatically increases in value. And at the present time currencies across the developed world are in fact becoming worth less and less because of their deficit issues and the amount of money that is being printed in order to try to support their economies. This of course is eroding the value of fiat currencies, and now we are seeing gold become a more attractive option, hence the rising prices. I know it sounds simplistic, but just as I tell my clients, there is no need to suffer paralysis by analysis, just view gold as an alternate currency, and remember, when the value of paper currencies fall, alternate currencies rise.
Right now, Europe is going through a debt crisis and its only a matter of time before the problem shifts to England, Japan, and eventually the U.S. Along with a host of many other countries, virtually every nation in Europe has racked up tremendous debt. The way each of these countries kept piling up their debt was by having other investors, governments, and banks invest in their bonds. If these entities continued buying their bonds (which is essentially a loan) then they could continue with their reckless deficit spending. One thing that this housing/banking crisis did was that it severely downgraded each of these countrys abilities to generate tax revenues. When this happened those units that were supplying the funds to each of these countries spending binges started to rethink whether or not these countries would be able to repay their debt, and when that began, these bond holders began to sell their bonds, but at a loss. Remember, when sellers outnumber buyers in the bond market, rates go up, and when buyers outnumber the sellers, rates go down. Considering that the selling was at panic levels, interest rates rose considerably in these countries, and when interest rates go up it makes it that much more difficult for these countries to repay their debt, hence the downgrades from the ratings agencies in these countries. The reality is that these countries will most likely never be able to repay their debts, and they will either default at some point in the future, or the (ECB) will print more money to support these countries. As a condition from the (ECB) and European Union to aid in support to those particular countries, they have to make very painful cuts in their spending to receive this money, which signifies that wages will fall, people are losing jobs, and pensions are being reduced, which is why you are seeing all these Unions riot as in the images we saw coming from Greece. So therefore you can pretty much bank on Europe going through a protracted downturn for quite some time, and its not just these countries that are making cuts, but all of Europe is following suit and this will weigh on the value of the Euro for quite some time.
Of course this is causing the value of the EURO to go down, and by default the dollar has to rise because after all the Dollar is still the Reserve currency in the world and just as I tell my clients, the Dollar is basically the prettiest house in ghetto, so there is a lot of money flowing back to the States. But all of the preceding demonstrates the strength of gold and even though the value of the dollar itself has been strengthening; the value of gold is strengthening even more. Why? It isnt just gold vs. the dollar, but more so gold vs. paper currencies, and right now paper currencies are becoming debased, and you can pretty much expect this to happen for quite some time.
Right now the focus is on Europe, and again, its only a matter of time before Japan, England, and the U.S. suffer their own debt crises. The U.S has a $13 Trillion national debt and is expected to grow by another $10 Trillion over the next 10 years, and that is by the W.Hs rosy projections. This is unsustainable, according to the best and brightest experts in the field who are warning of our own oncoming debt crisis, and once the bond vigilantes (bond investors) deem U.S treasury bonds too risky to hold, then our rates will soar, and our dollar will free fall. If you think gold is moving high now, just wait around a while and you will be really be surprised!
I advise investors to allocate a portion of their reserves into an asset which almost certainly will not lose its value, and that is precious metals, and I urge you to do it soon. You do not want to wait to make your investment until after the focus of our National Debt shifts from Europe across the ocean to our shores. There are a number of ways to invest in gold but I believe that the best way is to invest in physical gold and by clicking into the enclosed link below, it will take you to a site where you will learn how to do this.
I would like to take just a minute to thank you for taking the time to read what I have had to say concerning the looming economic problems facing the world today and some of the measures that you may take to help you achieve financial security.
Our site, www.gold-observer.com, will supply you with continuing valuable insights into why Gold and precious metals are extremely solid and reliable investment options now and for coming years. Its pretty much certain that rates will rise for the foreseeable future, and those who invest now will see their assets climb ever higher. Please visit our site for the premier comprehensive analysis in the business today.
