| Friday, November 18, 2011 | ||||
We're talking precious metals today with John Stevenson. John, is gold in a bubble? Absolutely not. In fact, I think what you're going to see is gold hitting $3,000 an ounce way before you ever see it dipping below $1,500 an ounce. So I think the best days are yet to come for gold investors. Give us a little context for that. Why you view that as not being in a bubble, and why you see so much potential ahead? Sure. Well, gold, as well as silver for that matter, have been historical currencies for thousands of years. In fact, we were on the gold standard in the US for many years, and the world was, the Western world was. What we're seeing around the world is really a follow through from the 2008-2009 crash, where we saw consumers and businesses heavily indebted,. All that happened in the intermediating years is the government stood in and they were the spenders of last resort, and so the risk was transferred from the household sector to the corporate sector to the government sector. We know these governments are broke because Greece is on the front page of the newspaper every day. Europe is on the front page. Is the European Union going to hold together? What about the debt ceiling in the US? What about Obama and his speeches? Will we get some physical stimulus from the US government? Will it get through Congress? This has got people spooked. People are worried about political gridlock on both sides of the Atlantic. And they're saying, I think, the only way out of this mess is for governments to print money. Because after all, it's a lot easier to pay off your debts in inflated dollars than it is to go the root of austerity, as the Greeks have shown us. This has made people flock to these precious metals. Not only gold, but silver and diamonds as well are up over 30% year to date. |
http://www.moneyshow.com/investing/article/43/VideoTrans-25448/Why-Gold-Isnt-in-a-Bubble/#
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