In the coming deflationary period, gold, silver, oil, real estate, etc will all drop signifivantly.
The collapse of the credit boom cannot be re - inflated by printing.
The debt that can never be paid back dwarfs what the Fed can print.
MSM Viewer makes a good point about avoiding deflation. With deflation, a depression of epic proportion would take place for decades until the outstanding debt (worldwide) is paid down...Enter the politicians, whose main job is to get reelected. They will pump money and more money into the system to avoid deflation and a depression trying to ease the pain for votes.
This banking system certainly can’t work in a deflationary environment so pumping in money is the only alternative since no one (yet) wants to deal with debt head-on.
The best you can hope for is that housing doesn’t recover for decades, real unemployment stays around 15%, taxes don’t exceed 50% of income and you have enough money to eat without having to order in Chinese.
For people not sure what will happen, take at least 10% of your cash and buy precious metals. Silver will preform very well during panics as gold becomes to expensive for the little people. So the long term ratio will return to balance.
Talk of a gold standard of some type in the future on a worldwide basis makes some speculate that gold will reach a higher price then stay there this time.
You can always sell gold, silver, etc. as prices rise during this gold bull cycle that has run for about 10 years now. Around 2020, you can stop and see where we are at for the next major decisions. In the meantime the wild swings in prices with be hair-raising, causing much doubt.
Gold/silver prices are recording the uncertainty of future world events ex. banking, politics, rule-of-law, wars, etc. until things calm down, protect yourself.