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business newsHave a Position in Gold or Silver? Sit Tight
And if you have not yet begun to diversify your wealth into gold and silver, it's time to consider putting a toe in the water. Here's why.
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– Russian Prime Minister Putin, speaking of The Fed
And consider this quote from last week to put your investment focus in perspective:
"…The flight to gold is accelerating at a faster and faster speed. One of the big US banks texted me today to say that if QE3 actually happens, we could see gold at $5,000 and silver at $1,000. I feel terribly sorry for anybody on fixed incomes tied to a fiat currency because they are not going to be able to buy things with that paper money."
– Britain’s Peter Hambro
While the week ahead will undoubtedly contain more chair-slamming by senior politicians, brinksmanship by both parties, and hyperbole from the media, remember one thing when you catch yourself listening to the empty babble. If you find yourself slipping into the “need to know mentality," remind yourself that nothing will happen this week that will change the die, already cast and solidified for America’s near-term financial future.
Doubt that? Think back about the important details behind QE1, QE2, the critical covenants behind the first Greek bailout and prior debt ceiling agreements – they were largely irrelevant. The details to this sidebar are nothing more than a distraction as well.
Do you really think Asia’s policies toward gold, silver, and the dollar are going to change because of any promise that any American official will make? Please! Not a chance – so yours shouldn't either. Ultimately it comes back to recognizing the financial paradigm has changed for the rest of our lives. Is your head buried in the sand or are you positioning your family to profit from it?Still think I exaggerate? Look at the European experience through the words of Germany’s Der Spiegel now that relief has returned following the latest Greek solution:
In spite of massive cash transfusions and bailout packages, the eurozone has started trembling again over its weakest members. The future of the common currency is, again, at stake. Ireland and Portugal will receive billions of euros in support, and a second bailout for Greece is in the works. And just as European politicians were starting to think about their summer vacations, Italy's public debt has slipped into focus.
No back-room deal can fix our debt, yet the vast majority of Americans haven’t started positioning themselves for the pending tsunami. If you are like them, there is great news embedded in gold.
Specifically, if you have not yet begun to position your family, your lack of action to date is almost as immaterial as the debt-ceiling fiasco. Why? Because if you begin to diversify in gold and silver now as a hedge versus the incompetence of the American government, you will shortly have more gold than 95% of the world. And when you have gold and silver, you are positioned for your relative wealth to increase.
With all of the financial reading you do and all of the courses you have taken, did anyone ever relay to you what being a millionaire really meant in the US when America was the world’s engine of growth? Up until Roosevelt made it politically fashionable to trash the Constitution of the United States, becoming the first in a long line of presidents to believe themselves to be superior thinkers to our founders, being a millionaire in the US (until 1033) meant one thing to the world: you owned 50,000 ounces of gold.
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