Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21
UK Covid-19 Booster Jabs Moderna, Pfizer Are They Worth the Risk of Side effects, Illness? - 22nd Nov 21
US Dollar vs Yields vs Stock Market Trends - 20th Nov 21
Inflation Risk: Milton Friedman Would Buy Gold Right Now - 20th Nov 21
How to Determine if It’s Time for You to Outsource Your Packaging Requirements to a Contract Packer - 20th Nov 21
2 easy ways to play Facebook’s Metaverse Spending Spree - 20th Nov 21
Stock Market Margin Debt WARNING! - 19th Nov 21
Gold Mid-Tier Stocks Q3’21 Fundamentals - 19th Nov 21
Protect Your Wealth From PERMANENT Transitory Inflation - 19th Nov 21
Investors Expect High Inflation. Golden Inquisition Ahead? - 19th Nov 21
Will the Senate Confirm a Marxist to Oversee the U.S. Currency System? - 19th Nov 21
When Even Stock Market Bears Act Bullishly (What It May Mean) - 19th Nov 21
Chinese People do NOT Eat Dogs Newspeak - 18th Nov 21
CHINOBLE! Evergrande Reality Exposes China Fiction! - 18th Nov 21
Kondratieff Full-Season Stock Market Sector Rotation - 18th Nov 21
What Stock Market Trends Will Drive Through To 2022? - 18th Nov 21
How to Jump Start Your Motherboard Without a Power Button With Just a Screwdriver - 18th Nov 21
Bitcoin & Ethereum 2021 Trend - 18th Nov 21
FREE TRADE How to Get 2 FREE SHARES Fractional Investing Platform and ISA Specs - 18th Nov 21
Inflation Ain’t Transitory – But the Fed’s Credibility Is - 18th Nov 21
The real reason Facebook just went “all in” on the metaverse - 18th Nov 21
Biden Signs a Bill to Revive Infrastructure… and Gold! - 18th Nov 21
Silver vs US Dollar - 17th Nov 21
Silver Supply and Demand Balance - 17th Nov 21
Sentiment Speaks: This Stock Market Makes Absolutely No Sense - 17th Nov 21
Biden Spending to Build Back Stagflation - 17th Nov 21
Meshing Cryptocurrency Wealth Generation With Global Fiat Money Demise - 17th Nov 21
Dow Stock Market Trend Forecast Into Mid 2022 - 16th Nov 21
Stock Market Minor Cycle Correcting - 16th Nov 21
The INFLATION MEGA-TREND - Ripples of Deflation on an Ocean of Inflation! - 16th Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Age of Entitlement and Need to Own Gold

Commodities / Gold and Silver 2012 Nov 13, 2012 - 02:40 AM GMT

By: Bob_Kirtley

Commodities

Best Financial Markets Analysis Article “Cassius suggests that the people get the government they deserve”.

This can be a good thing, if (and it’s a big “if”) the people do their homework and vote based on facts, not on rumor or innuendo - Shakespeare in Julius Caesar


Many of our leaders, writers and philosophers have said similar things down the years and it would appear to be apt today. It’s time for us to admit that we vote for those who offer us the most regardless of how it will be paid for. As voters we are all for getting the economy sorted so long as it doesn’t involve our entitlements being diminished in any way at all. After all we have become accustomed to these benefits and our expectations have been raised by the political elite of all ideologies to ever increasing heights that are actually way beyond our pay station. To win an election the politicians need to be popular and they do that by promising the voter a better future without the voter having to exert himself too much. Alas we continue to fall for this three card trick in the vain hope that it will be alright on the night. Fat chance!

In the United Kingdom the Brits were intoxicated by the Blair/Brown ticket and thirteen years later the chickens came home to roost with a new coalition government implementing a program of austerity bringing with it the misery we have seen all across the southern nations of the European Union. France has elected François Gérard Georges Nicolas Hollande on a promise of a better future and already his popularity has fallen dramatically as the French electorate realizes that he just cannot deliver, further more France now appears to be heading towards its own fiscal cliff.

On the subject of fiscal cliffs the United States has its very own cliff looming with an ETA of 01 January 2013. One gets the feeling that this won’t be the best start that we have had to a new year. The reelection of President Obama means we will be in for more of the same with the only difference being that the president will not be standing for office again, so being mister popular carries less weight than it did prior to the election. So his policies of tax, borrow, print and spend will remain intact as that is what he does. More and more people will become dependent in one form or another on the government benefits and less dependent on their ability to stand on their own two feet and grasp the problem by its throat and wring the life out it. Benefits for the needy were a good thing many years ago, but today they have grown massively into a life style choice that is bleeding the very life out any economic recovery. Until government spending is cut and cut hard we can only expect the economy to stagger from one crisis to another begging for the next stimulus package which it is now addicted to.

It really is a very sad to see the United States, Europe and Britain in this mess with the only solution on the table being an increase in liquidity. This is not the remedy for insolvency and it does not improve the health of the economy.

We also have the sword of Damocles being lifted from Ben Bernanke’s head so he now has a free reign to run those printing presses as he wishes.

These two events will conspire to drive the dollar into the end zone; its demise along with a number of other fiat currencies is now almost a sure thing. In our opinion the main beneficiaries from the loss of the dollars buying power will be hard assets such as gold and silver.

As the penny drops and more and more people realize that the folding stuff is not holding its value and they will seek refuge elsewhere and when they do it will be an almighty stampede, as they will move in tandem to enter the precious metals market. As you probably already know, there are very few people who can tell you the price of gold and/or silver these days, as they are fairly oblivious to what is going on. However, as jobs disappear and the need for food stamps accelerates they will get the message that all is not well.

Gold and silver will make the headlines for record breaking reasons which in turn will induce a demand for them bordering on the irrational. This will be the first sign that precious metals are entering the parabolic phase where an unquenched desire morphs into a maniacal action thus driving prices to unimaginable new highs.

There is not a lot we can do about this other than to try and protect ourselves and those around us by taking action in the form of insurance against the ill wind that is coming our way. In our minds the best insurance is the acquisition of gold and silver as it cannot be diluted by any government and therefore will hold its purchasing power as it has done for five thousand years or so.



As for the dollar we could see it improve over the near term as money comes out of the stock market due to a number of uncertainties and returns to the sidelines. This should not be seen as a bullish sign for the dollar as that money will not remain idle for long. Once things settle down a tad investors will be keen to put their funds back to work. The interest payment derived from holding this currency is so low that it is a negative return in real terms so it will be re-deployed promptly.

Finally, if you can curtail some of your frivolous spending and live a more Spartan life style in order to generate the cash to invest in hard assets right now, this could be your saving grace. Please give it some consideration as there isn’t a lot of time left for us all to get into position and be able to ride this one out.

Have a good one.

Bob Kirtley

Email:bob@gold-prices.biz

URL: www.silver-prices.net

URL: www.skoptionstrading.com

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 200

DISCLAIMER : Gold Prices makes no guarantee or warranty on the accuracy or completeness of the data provided on this site. Nothing contained herein is intended or shall be deemed to be investment advice, implied or otherwise. This website represents our views and nothing more than that. Always consult your registered advisor to assist you with your investments. We accept no liability for any loss arising from the use of the data contained on this website. We may or may not hold a position in these securities at any given time and reserve the right to buy and sell as we think fit.

Bob Kirtley Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in