We know gold is a popular investment today. Many analysts are recommending it because, well, it’s on a ten-year winning streak. When Doug was recommending it in the late 1990s, it was for theexact opposite reason – the price had simply been too low for too long.
Sure, today’s popularity makes us cautious… but no matter how we cut the deck, the big picture still points us strongly toward gold.
The US continues to debase its currency, as does just about every other government on the planet. They have to, in order to pay for decades of debt and overpromising. Their only way out of years of mismanagement is to destroy the currency in which debts are denominated.
As currencies go down, the price of “stuff” goes up. And gold is the most enduring “stuff” to hold for folks who want to maintain their wealth. So even with today’s record-high prices of gold, we still see it going considerably higher as paper currencies continue their downward spiral.
Besides, gold’s recent run has not generated anywhere near the mania you see at the end of most bubbles. Around 2005, everybody and their brother was flipping houses on the weekend to get in on the record-high prices. We know what came of that. Until you can’t open Newsweek or turn on Good Morning America without hearing about how everyonemust buy gold now – and until you see pawn shops with signs that say “We Sell Gold” instead of “We Buy Gold” we’re not in a mania… And gold still has room to run.
And as long as The American Debt Crisis endures, this three-pronged approach to investing in gold should be a critical part of your saving and investing strategy… both for the protection it provides against bad monetary policies, and for the profit potential it gives you thanks to gold’s ongoing historic bull market.
Source: An investor briefing from the desk of Olivier Garret, The American Debt CrisisPanelist, CEO of Casey Research.
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