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business newsMining Stocks, Gold and Silver Bullion May Be Ports in Upcoming Storm
Foreign governments are buying gold at levels not seen in 30 years due to risk of further declines in the US dollar.
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Until now, everything was coming up roses. National recovery was in the air. Then, all of sudden these past few weeks, data turned on a dime? Economists were compelled to rethink hitherto positive figures. Are we being programmed to believe more quantitative easing is necessary?
It would not be surprising if we were finessed into acceptance of inflationary policies. Bills could be paid with cheap dollars. Moribund local and state governments could pay off their strangling debts. Think of our swollen budget being paid with cheap dollars. A seemingly simple solution to a complex problem. However, there may be another side to this.
Our erstwhile allies, such as China and Russia, have been making noise about setting up an alternative currency. Witness Greece and the PIIGS nations (Portugal, Italy, Ireland, Greece and Spain). They are desperate for money to extricate themselves from their financial quicksands. More bailouts, anyone?
Foreign governments are buying gold (GLD) at levels not seen in 30 years due to risk of further declines in the US dollar (UUP).
Gold (GLD) is breaking out of the symmetrical triangle formation on its way to our late January target of $160 or $1600 gold. Monitor it for a powerful leg higher as we break $1575 or $152 on the GLD.
Then there's Goldman Sachs (GS), which is under subpoena in Manhattan as possibly playing a major role in the housing market fiasco. The Manhattan District Attorney is investigating “activities in creating and selling mortgage-based securities designed to allow the bank to profit from the collapse of the housing market.”
One cannot but hope to consider that many of these dramatis personae are some of the very same folks who are steering our national financial ship of state.
All these roads lead clearly to the validity that mining stocks (GDX) and gold (GLD) and silver (SLV) bullion, may be the requisite ports in the upcoming storm.
Editor's Note: Read more from Jeb Handwerger at Gold Stock Trades.
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