Simon Black: Gold is Still a Bargain
Excerpts from a recent post by Simon Black, aka Sovereign Man:
Doing his best to appear convincing yesterday, President Obama outlined his plans to make deep cuts to America’s budget deficit.
“If our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money…”
This is some of the clearest language we’ve seen yet– that official policy is to screw the people who work hard and save their money in order to benefit debt junkies.
...Picking it up at its all-time high of $1470 may be psychologically difficult, but as long as world central bankers continue to print and debase their currencies, more and more money is available to flow into gold.
...there’s no need to rush out and buy every ounce you can today; there will be ups and downs, particularly over the next few months as the market tries to figure out if/when QE3 will happen.
The long-term prospects for gold, however, are solid. The price of gold is fueled by increased debt, the expansion of money supplies and geopolitical instability, all of which are in abundant supply.
...Despite what you hear about recovery, the fundamentals of the world’s economic problems have not been addressed… merely papered over with temporary magic tricks.
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