Friday, November 13, 2009

Are you buying gold?

Or are you counting on the government to save the dollar? Doug Casey predicts "a mania in gold."
because the gold and especially silver markets are so tiny, the rush into them will be like trying to push the contents of Hoover Dam through a garden hose. Our positions will go absolutely ballistic.” –Doug Casey, September 2009
Casey says the total vale of all the gold ever mined equals $5 trillion in today's prices. Yet U.S. government debt is over twice that amount so far this year. Total global government bailouts are conservatively over four times that amount.

The dollar, like all paper currencies, are exchange instruments managed by governments and big bankers for the benefit of governments and big bankers; in spite of their legal tender status they will eventually become waste material when they're inflated to the point where no one wants them. Then the world will rush into gold, silver and other precious metals. But those are in very limited supply, and their prices in inflated paper currencies will hit the stratosphere.

His advice: Buy gold and especially gold stocks before the gold rush hits Main Street.

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