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Investments: How to Benefit from the coming Gold Rush-Part 1 |
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Written by Ric Conzet
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Wednesday, 24 September 2008 08:33 |
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As you already know, we are in the early stages of a currency crisis and a total crisis of confidence. What do people that maintain their wealth and expand it do, during periods like this? They take positions in GOLD. You should always hold some Gold. A Boom in gold is just getting warmed up. It could easily rocket to $2,000 an ounce in the next year.
Historically there are three things that cause extreme rises in the price. 1. Weakening of the dollar. 2. easy monetary policies. 3. Geopolitical uncertainty. Currencies come and go but gold remains the same. Adjusted for inflation a $35 ounce of gold in 1971 is worth approximately $2,275 today. The amount of money in circulation has been skyrocketing for over 40 years. This week’s added Trillion dollar debt load with much more to follow will smash the dollar’s value and increase the circulation of weak dollars at the speed of light. The FED knows regular cash and credit injections make everyone feel rich. HOW DOES MONEY KEEP VALUE? Before becoming FED Chairman Ben Bernanke publically stated “Like gold, US dollars have value only to the extent that they are strictly limited in supply. But the US government has a technology called a printing press which allows it to produce as many dollars as it wishes at essentially no cost. We conclude that under a paper money system a determined government can always generate higher spending and inflation.” “So, if you want to speed up an economy….run the presses and lend at low interest rates. The FED won’t loose control” he continues. The problem is money can’t escape the law of supply and demand. When there is too much of it around each one is worth that much less relative to the whole………Voila…INFLATION and your dollars become worth less. The ONLY way to stop DELAYING a crisis is stop expanding credit. Putting off credit expansion can cause a final and total collapse of the currency system involved. Gold is already rare and becoming more so. Demand is going up world wide. You want to accumulate gold investments now and it’s easier than ever before. There are 9 ways to get into gold 1. PHYSICAL GOLD 2. GOLD CERTIFICATES 3. GOLD SHARES 4. GOLD MUTUAL FUNDS 5. SENIOR GOLD COMPANIES 6. FOREIGN GOLD COMPANIES AND ADRs 7. JUNIOR GOLD STOCKS 8. GOLD OPTIONS 9. GOLD FURURES We will be going into depth on all of these options over the coming weeks. Stay tuned. And be careful, very careful.
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