Which is more important to the investor – a dip in the gold market or a double dip in the economy?
Posted by Adam King on May 09, 2011
When economies crumble, certified gold is the one proven place to turn.
May 09, 2011 – Which is more important to the investor – a dip in the gold market or a double dip in the economy? Sorry, that was a trick question. They are both important and together they make a mighty strong argument for getting serious about certified gold investments. Right now.
The truth is that last week’s drop in commodities reflects a stronger dollar, but the stronger dollar is the result of an artifact from our glory days and cannot last in today’s global economy. Worsening domestic news is driving investors away from risk, and in one inexplicable leap of faith they are turning to the dollar – the keystone of the worsening economy.
Small business is still in recession and recent polls indicate a rapidly growing number among small business owners – already up to 57% – believe that the economy is deteriorating rather than improving. And “the evidence of a double-dipping housing market and economy are becoming undeniable,” says Michael Pento in MarketWatch.
“More evidence of an official double dip in home prices was found in a report from Clear Capital, [which] stated that its monthly index is now below the prior all-time low set in March 2009,” Pento says. From that report, “Home prices have dropped 11.5% in the last nine months, a rate of decline not seen since 2008.”
Quite plainly the only reason that we haven’t yet been hit with dip two is the Fed’s massive intervention. “Quantitative counterfeiting Part 2 hasn’t even ended yet, and this ersatz economy that is based on borrowing and printing is already starting to falter,” says Pento. “A slowing economy with rising unemployment and falling home prices will, unfortunately, keep the Fed in the shipbuilding business — as in “QEIII” — for quite some time … when the Fed, Treasury and administration finally acquiesce … the pain will be much worse.”
Probably very true, unless, of course, you happen to be strongly positioned in certified gold.
Stewart Lawson
Senior Staff Writer – Certified Gold Exchange
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US Gold Market
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