Gold Investment: The greatest risk

Gold Investment - 28 November 2011

In a recent BBC news segment, independent trader Allesio Rastani, made it clear that the Eurozone market will crash, that he expects that millions of people will lose their savings within the next 12 months and that “…the biggest risk people can take right now, is not acting.”

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Yes, one of the biggest risks one can take during these times is not acting, but in brutal honesty, a much bigger risk is to act and to completely miss the mark while doing so. Gold Investment is of the opinion that Rastani completely misses the mark when he suggests that bonds (including 30-year and treasury bonds) and the U.S. Dollar are safer assets than Euro-based assets. Yes, the Euro might not survive for much longer, but to say that U.S. Dollar-based assets (or any other fiat-based assets!) are safer then Euro-based assets, are a bit of a misnomer and completely misses the mark. In fact, the mainstream media tends to focus on problems in the Euro zone, but things are much-much worse in the U.S. where the debt crisis is much bigger than the debt crisis in Europe. As reported earlier this month in the non-mainstream media, “…the U.S. Treasury, formally known as the U.S. Department of Treasury, is planning to issue $846 billion in U.S. Treasuries (U.S. paper) within the next 6 months” (Buy Silver: U.S. Treasury to create more debt, Silver Bullion Website, 7 November 2011). It is after all no secret that the once mighty U.S. Dollar has about 5% of its original value left, which will soon be completely destroyed as “…the U.S. will continue to run the printing press in order to pay back their creditors (China, Japan and others)…” (Buy Gold: Debt crisis in the U.S. much larger, Gold Investment Website, 14 November 2011). In fact, the “…U.S. has no chance of ever balancing its budget and will likely see its deficit explode to new highs in the years ahead” (European Debt Crisis Facts and Truth, The National Inflation Association, 7 November 2011). Don’t “…be surprised to see U.S. bond yields exploding in the months to come, because the U.S. has clearly chosen to go down a different route than Italy, hoping to grow out of its massive debt crisis by feeding the American economy for one with an ever growing mountain of U.S. Dollars” (European Debt Crisis Facts and Truth, The National Inflation Association, 7 November 2011).

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Given the above, it won’t surprise us to see the U.S. Dollar strengthen over the short-term as investors follow the advice of Rastani (and others) and rush into the U.S. Dollar, instead of rushing into good or honest money such as gold and silver. However, any strength gained by the U.S. Dollar is expected to be short lived at best, especially if one considers that U.S. bond yields are expected to explode in the not-so-distant future.

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