2011-03-25

Gold Bears Will Learn the Hard Way

Over the next several months, investors will come to gold and silver after they have gone through a process of elimination, investing in other over-valued investments such as currencies, real estate, and Dow-related stocks.

Once these investments start to decline, investors will jump from one over-valued investment class to another until they finally discover the precious metals.
This transition has been slowly been taking place over the past several years.
At some point, the U.S. dollar will be in free-fall — and the stampede to gold will be in full swing.
The gargantuan financial risks that exist in our global markets are staggering. When you understand the risks to the market with naked short selling, derivatives insanity, unsustainable debt structures of governments worldwide, etc... it leaves you with a very uneasy feeling.
These risks are very real and hardly understood by the average citizen.

These bets are getting larger and larger as those involved have to keep going to the next level of risk to manage their current unsustainable position. The question is can these bubbles be deflated slowly or will they just pop. Either way, the die is cast.

whether it's FOX or CNN, conservative or liberal, the engines of mass media are fueled by the revenue from their corporate advertisers.
And these giants ultimately depend on your continued faith in the U.S. economy and dollar.

If it will simply be an equation of how much fiat money is chasing such a small amount of physical bullion, how much will you have?

An old, but relevant quote today:

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. ~ Henry Ford

http://www.wealthwire.com/news/metals/924


Related: Silver, $36, $37, $38 ... $50?
http://howtze.blogspot.com/2011/03/silver-36-37-38-50.html