Gold Investment:  Get out of stocks into gold

Gold Investment - 18 September 2011

According to Dr. Marc Faber, Austrian editor of the BoomDoomGloom Report, investors should get out of stocks and move into gold instead. He says that momentum towards the downside is strong and this factor could lead to liquidation on the SMP. In the case of liquidation, money printing (Quantitative Easing) could cause the markets to go up, because prices need to rise in order to make up for the loss in purchasing power.

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Invest in precious metals today! Contact us for details.

He speculates that an official QE3 may not be announced immediately, but he is convinced that if the stock markets weaken, Europe will most certainly do additional money printing. According to Faber, Quantitative Easing (QE or money printing) has failed and that is why it has been given a bad name. When there is Quantitative Easing, countries experience no real economic growth, but rather a rise in prices due to a drop in purchase power, which will ultimately lead to hyperinflation and a complete collapse of the underlying fiat currency. This rise in prices due to a weakening fiat currency is mistaken by many as economic growth, but it is certainly isn’t economic growth. There is no benefit to the economy other than bonuses to the bankers and their political allies at the expense of the public at large. It is not difficult to see that QE1 and QE2 have largely failed, especially considering that the U.S. Dollar has lost the bulk of its purchasing power as a direct result of it.

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Invest in precious metals today! Contact us for details.

Since gold has divorced itself from everything else, both gold shares and trading increased as the market tumbled. The gold price and the U.S. Dollar (USD) previously went hand-in-hand. When the gold price went up, the USD also went up and when one went down, so did the other. First National Bank (FNB) recently tied the Franc to the Euro, thus making a currency which was perceived safe, less safe, since it is now tied to a weaker currency.

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