Certified Gold and the Increasing Deficit
Posted by Adam King on February 01, 2010
The President is getting ready to submit his budget to congress. The proposal will include many new programs costing billions of dollars and higher taxes on the wealthy. Nevertheless the government expects the federal deficit to increase by $1.6 Trillion this year and by $8.5 Trillion over the next decade. Kind of makes you happy you bought certified gold, doesn’t it?
Deficit spending will increase borrowing from the private sector to 68 percent of the economy by the end of 2010 and 77 percent of the economy by the end of the decade according to government figures. It is truly hard to imagine how such huge borrowing will not drive the US dollar to even lower levels and gold much higher.
Certified gold has done well in the last decade as the US economy has experienced a series of traumas, including a stock market collapse and deflation of a housing bubble. Investing in certified gold has helped preserve wealth and protect against the steady shrinkage of the US dollar; this is underscored by the fact that the price of gold has quadrupled over the last ten years.
Wealth can be held in various forms: money, property, stocks, and of course, gold. As the government attacks the terrible situation in which the country finds itself, it will look for wealth were it can find it, transfer it to government coffers, and try to rejuvenate the economy. Along the way, fortunes may well be lost as tax rates go up and what amounts to confiscation of wealth takes place.
The situation reminds one of the confiscation of gold in 1933. As such, investors may well be wise to invest part of their wealth in certified rare gold coins as these coins enjoy the legal precedent of not being taken when the government came for everyone’s gold in 1933. Thanks to a swelling deficit, certified gold coins can be a great investment.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
Categories:
US Gold Market
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