$14.3 Trillion Reasons to Own Gold NOW!
"A combination of ongoing deficits, increasing interest rates... will force the Federal Government to renege on its promises." - Peter Souleles - Australia
In 2005 the U.S. debt ceiling was $7.8 trillion. In 2010 that number has ballooned to near double at $14.3 trillion and is expected to reach $18.8 trillion by 2014. At the rate we are growing that number will equal more than 100% of GDP.
Wow! The first question that comes to mind should be, "How will we then finance our debt?" If there is no one left to lend us any money, (rumors to that effect are already circulating) how do we fund it? Answer: "Print more money!"
This is not fantasy we are talking about here. Souleles poses the question, " If the USA has not disposed of its gold, if India, Russia and China are adding to their holdings, if mining companies are de-hedging and if other central banks have stopped selling - what does this tell you?
It should tell you to own gold and own it quickly while prices are temporarily off their highs. Buy low sell high they say. Just DO IT! Get a few gold coins, American Eagles maybe before they run out again. And do it before Gold Demand goes crazy.
And by the way, that's what gold demand is doing. People forget when the dollar demonstrates signs of weakness, that means those who would propose to buy gold in other currencies like the Euro are buying gold at a discount.
The gold price may be down but demand is not. Soon supply fundamentals should kick in again and gold will be off to the races.