A strong reason investors are flocking to buy gold is because paper money is causing huge suspicion throughout the world. Governments continue to print more and more money to try and “print” their way out of a recession but this could cause huge inflation problems in the future.
IMO....Deflationists and Inflationists are each convinced they are correct in their assessment of economic forces. So why is it we are not going one way or the other? The answer is BOTH. There are huge inflationary forces at play AND huge deflationary forces at play. The Fed is pumping money into the black holes while negative equity/over supply strangles housing. Like two giants in a tug-of-war, neither gaining the advantage, our economy is balanced on the apex of a mountain with either side leading steeply downhill. If either force diminishes we shall surely be dragged down the other slope. The miracle so far is that we have not lost balance and tumbled either direction...yet. The best we can hope for is that time will buy us a less hard landing whichever way it goes from here. Precious metals are always a great hedge in times of such uncertainty. Note that everyone is watching gold. DON'T OVERLOOK SILVER as a great opportunity right now.
