Posted on 01/03/2010 9:03:39 AM PST by blam
Gold And Double Dip Recession
Commodities / Gold and Silver 2010
Jan 03, 2010 - 02:52 AM
By: Andrew Abraham
Countless investors fear a double-dip recession. It is quite possible that a second drop of economic activity during 2010 will occur. It is also quite possible that the supportive actions of governments will run out. Even the central banks are not a bottomless pit ( as long at they have enought paper to print more money).
The fact is that the central banks are trying to be very cautious in not increasing the rates too soon. However anyone with any sense truly believes strong inflation is on the way. We have seen price increase in basic food stuffs and even shortages. It is almost a perfect storm for inflation.
As far as gold is concerned there is a strong potential of increase in prices in the longer term. Trend Followers do not make predictions…they react..but the facts are on the ground.
With the onset of inflation ( if it truly happens) it is only highly likely that gold will further attract more supporters. Some Central banks have been buyers..as well as the populace of China and India. It goes without saying that Gold has and will be a safe haven in times of uncertainty.
Think about it…any currency is really just paper.. what is truly backing any currency other than belief and trust. It does not matter if it is Yen…Euros..or even dollars…it is all paper…not backed by gold or silver.
[snip]
Barney Frank, Dem, in his current “Wall Street Reform” back scratching bill, has doubled from 2 to 4 Trillion dollars as to how much more the Fed can pump in, to bail out any and all Dem Party campaign contribu...er, needful businesses/banks.
President Zimbabwee Obama and his gang seem to truly believe that unlimited money is to be had via the printing press and click of a Fed Reserve pc mouse button.
Gold, silver and lead will be the only currencies worth holding
Be prepared to use the lead to defend the other precious metals.
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