Gold Price...Where's It Going?

If I could answer the question of where gold is going, well then I wouldn't be posting on this blog. Instead I would be sitting on the beach, with my lovely wife, sipping a Corona. However, all indications are pointing to up, up and up for gold prices.

Now here are some reasons to start buying gold.

Let's take a look at the world around us. First, the banking system remains unstable at best. The problems which hounded the financial system remain in place. No, not lack of regulations, but the continued increase of it. Barney Frank is insistent on keeping Freddi Mac and Fannie Mae alive and kicking. This in essence allows the government to continue pressuring or allowing banks to continue making the borderline loan an easy transaction. So long as these two government entities are buying up bad loans, banks will continue giving them, keeping the entire situation unstable. Secondly, as the dust continues to settle, look for the financial sector to be monopolized by a select few; aided by the government.

This is nothing more than one symptom of an infested economy. Perhaps the looming 800 pound gorilla is the policy of printing money to pay for the debt. This practice can have devastating effects on the economy, creating hyper-inflation. The theory is simple, more money dilutes the value of the dollar, pushing up the prices of goods and services at a rapid price.

The strain on the investment class or rich, is growing to a breaking point. As the policies of this nation create more and more debt, taxes must and will be raised. This will drain money from those who can create wealth and place it squarely in the hands of the government, which cannot create wealth.

Finally, America's debt is no longer an in-house debt. Folks, our debtors are foreign nations specifically, China. This has in essence created a situation where our actions must be explained, at the least, to a foreign government. This situation is self explanatory.

The foundations of the American economy are rattled and this means one thing; gold. The top investors will continue running to gold, so as common investors, follow them. I am not supporting a complete pull out of the stock market, but instead shift a percentage of investment money into gold. It is the wise and prudent action until we have clarity to the direction of the new economy.