Arizona gold nugget
As I write this post, spot gold is down over $46 per once!
Worries over the debt struggles of euro-zone countries Greece, Portugal and Spain fueled a flight from stocks to the safe-haven dollar, which hurt commodity prices denominated in the greenback.
gold prospecting
Gold prospecting story was send in by Rick, one of our subscribers:
A good friend of mine discovered a creek that apparently was overlooked by the 49′ers. I call it Nugget Creek. The creek is about 20 feet wide in an isolated canyon in the Mother lode. He literally goes sniping in the 1-2 foot deep water with a homemade PVC sight tube and some tweezers and finds an oz a day of 3-7dwt nuggets that are found only in the center of the creek (the paystreak is only in the center of the creek).
California gold nugget
So, now gold is trading at prices that are closer to what they “should” be (based on official inflation figures). I guess my question is: will the gold price become more stable (and more in-line with inflation) now (in which case, it should be expected to go up “long-term” at the same rate that inflation does)? Or will it be incredibly volatile over the “long-term”…as it has been in the past.
crystalline gold
This may be the last time to buy a dip this low in price for spot gold. Much larger premiums on gold coins and bullion are building. The trend is for higher priced gold and under priced derivatives. The dollar based gold derivative markets have grown so large and have become so integrated into hedging dollar assets, that central banks will band together to crush any sizable delivery demand – forcing cash outs only.
gold gram scale
Inflation is going to happen, no ifs, ands or buts.
The government can’t just artificially inject mega-billions into the economy and not expect any adverse ramifications. Countries have tried this in the past (think post-WWI era Europe) and have encountered economic disaster. Bush and Obama have done the exact same thing (albeit on a grander scale) and are hoping it won’t happen here.
Any investors with an understanding of economics have seen this inflation coming and are turning to gold to protect their wealth.
gold gram scales
gold detector
For what it’s worth, I think global equities may collapse again 1) within the next 12 months and 2) before the real economy begins to recover and this will cause another flight to U.S. Treasuries. Sometime after the next equity collapse, the real stagflation will begin in the U.S. economy and USD and that will be the time to take a long position in gold and silver.
Gold is a long term holding, and may be one way the way to play the coming collapse in U.S. Treasuries and the USD.
