If you check out the news these days, you will see quite a bit of talk about gold and silver. Yes, it is quite the hot topic, but there is reason. It really is only going to be the safest play for investing over the next 12-18 months in my mind.
Now, I’m not a financial expert, financial advisor, or financial guru. This post does not constitute financial advice as I am only telling you what I am doing/believe. And I believe this…..gold and silver are seriously going to kill it over the next 12-18 months.
“Well why Tim?”
There are a number of reasons, and instead of typing an 80 page dissertation on why this will likely happen. I will just provide you with my top 3 reasons and give you a couple of my resources so that you can check them out on your own. Deal? So here we go.
1. Too much debt
Just as you read about gold and silver these days in the news, you will also read about the out of control spending and huge deficits our country has in addition to the Eurozone nations. All of this debt cannot be contained, and the truth is, each of these countries, to include the US, will have to continue to borrow money out of thin air just to pay for the interest on money that we already owe. Yes, this is a huge reason for “quantitative easting (QE)”, or in layman’s terms, money printing. Anyways, when the debt becomes too large and money is continuously printed, it becomes worthless….literally. Therefore, smart investors (to include foreign countries) are trying like hell to acquire an asset that has intrinsic value. Those assets just so happen to be gold and silver while trying to decrease their holdings in the US dollar.
2. This time it will be the safe haven
Without going into too much detail, the 2008 “Great Recession” really never ended. It seriously didn’t. It was just “papered over” as Gonzalo Lira, from liraspg.com, states. Yet, even if you want to say that it did go away, the crisis that we’re going to have in 2011 is going to be much, much worse. In 2008, US treasury bonds were the safe haven to park your money. In 2011, it is going to be gold and silver. Yes, as of the writing of this post, people were still buying US treasury bonds despite the downgrading of the US’s AAA status to AA+. But that will not continue as the US is forced to start printing money to the moon to get us out of the deflationary period we are entering currently.
3. Free market accounting
Throughout all of history, free market accounting has always occurred, and it will always occur. Right now, the US Fed and other central banks around the world are manipulating the crap out of the markets by flooding it with fake money, aka world currencies. If they would have just let the markets crash back in 2008 like they should have, we could have taken the hit and kept on going. But they didn’t let it happen as it should. Over a 12-18 month time frame the markets crashed when it should have only taken 1-2 months tops. But anyways, with the amount of fake money, aka fiat currency, into play right now, it will only continue to drive the price of gold and silver because in the end…..gold and silver will account for all the currency in the world. Which basically means, we could be seeing $15-20K/ounce gold within the next 12 months. It would a tragedy if this becomes true, but as of right now, I see no other option.
Alright my friends, here are just the wave tops of my top 3 reasons for gold and silver to be the next big thing. Each one of these topics could be discussed for hours on end. However, I only have a limited amount of time and space ;). But, I hope that you enjoyed this post. Would like to hear what you think about it so please post your comments below.
Until next time…
Dr. Timothy Lawler
P.S. Two of my biggest sources for this info are The Elevation Group and Mike Maloney’s talks, presentations, and videos, most of which can be found for free at his YouTube channel. Just go to YouTube and type in “Mike Maloney”, and you will be good to go. Take care.
P.P.S. If you want to join me on my team, then you should check out the Only Government Approved Financial System For Facebook. (You will need to authorize the app in order to watch the presentation.)
P.P.P.S. If you like what you read here, please feel free to leave your comments below or “Re-Tweet” or “Like”. Take care!