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It's Not Too Late To Buy Into The SPDR Gold ETF (NYSE:GLD)
ETF Daily News (blog) According to an article published by Bloomberg on June 09, the demand for gold coins is tightening supplies and boosting premiums as mounting concern over … and more » |
Source:It's Not Too Late To Buy Into The SPDR Gold ETF (NYSE:GLD) – ETF Daily News (blog)
There aren’t many times to favor Gold Investment over buying productive assets…
THEY FOUGHT the correction, but the correction won, writes Bill Bonner in his Daily Reckoning.
We refer to Bernanke, Summers, Obama, Geithner, Krugman – the whole lot of them. They added three trillion dollars to US debt in the last two years. In two more years the debt will be at 100% of GDP. Add in the debts they’ve guaranteed…from Fannie Mae, for example, and state and local debt implicitly backed by the feds…and you’re already at 150% of GDP.
Worse than Greece, in other words. And what do we get for it? A recovery? A healthy economy? A gold medal?
We’ll take the gold medal, thank you. It’s the only one that’s real.
The stock market was ready for a little bounce Tuesday. So that’s what it did…a little bounce – the Dow up 123. Gold kept climbing, however – up to a new record high above $1,250 an ounce.
If you had asked us 10 years ago which we’d rather have – stocks or gold – we would have said gold. Ask us now. Same answer.
Gold.
There aren’t many times when it makes sense to favor Gold Investment over productive investments. But this is one of those times.
Why? Because the world’s monetary system is heading for a crackup. And because the people running it have no idea what they are doing. Here’s Bloomberg:
Pimco’s Crescenzi Sees ‘Endpoint’ in Devaluations
June 8 (Bloomberg) – Nations have reached a "Keynesian endpoint" as exhausted balance sheets leave policy makers with few options to bolster economic growth, according to Anthony Crescenzi, an investor at Pacific Investment Management Co., the world’s largest bond-fund manager.
"Time, devaluations, and debt restructurings might be the only way out for many nations," Crescenzi wrote in an e-mailed note titled ‘Keynesian Endpoint’ that referenced the Great Depression era economist John Maynard Keynes. Debt-fueled spending programs aimed at combating the global financial crisis of 2008 are among policy tools now "being seen as a magic elixir that has morphed into poison."
The Obama administration forecast a $1.6 trillion budget deficit, the most ever, in the current fiscal year that began Oct. 1.
You can fight a correction. You can delay it. You can distort it. You can make it bigger and nastier. But you can’t beat it. Eventually, mistakes have to be corrected…one way or another.
Usually, the mistakes take the shape of bad investments or bad loans. You can pretend that they’re still worth what you have in them. You can bail out the lenders and/or the investors. You can default and inflate. But somehow, someone, sometime is going to take a loss.
That’s when you need gold. Every other asset could have bad debt behind it…in it…or standing so close beside it that a blow-up would be damaging.
The correction that began in ‘07 was needed to address all the bad debt built up in the bubble years. The feds tried to stop it. Since they didn’t have any money they had to fight it by borrowing more money – that is, by increasing the level of debt!
We knew that wasn’t going to work.
And now, there’s bad private debt…and bad public sector debt too. And now we’re approaching a Keynesian "endpoint" when lenders are growing wary. They’ve already cut off Greece. They’ve warned the rest of Europe. And when they stop lending…then, all your props fall down…along with the economy…and the markets too.
Looking to make a solid Gold Investment today…?
Source:When You Need Gold
June 7 (Bloomberg) — Canadian stocks gained, led by gold producers, after bullion futures rose to a three-week high as risk-wary investors sought an alternative to holding euros.
Source:Canadian Stocks Rise as Gold Producers Advance; RIM Declines
June 4 (Bloomberg) — Gold dropped for a third day in Asia, headed for a weekly decline, as commodities fell on concern growth will slow in China and as some investors may have sold the metal to cover losses in equity markets.
Source:Gold Drops as Commodities Fall on China, Poised for Weekly Loss
June 2 (Bloomberg) — Gold dropped for the first time in eight days in London as some investors sold the metal after its longest advance since December 2008 and as the euros decline against the dollar stalled.
Source:Gold Ends Longest Advance in 17 Months on Investor Sales, Euro