Where is Gold headed?

If you asked me 6 months ago, I would have guessed the opposite of what I am about to predict, and that is that gold is simply just leveraging it’s value presently, and by this I mean that it has been leveling itself off to give itself a new average price. I think that price is about $1125 per ounce.

I do believe now that gold has yet to see it’s bull market  and has a long way to go in setting new records. I like to think of any market as a political race, and Gold clearly has gotten the votes and has cleared the hurdles……It won the primaries, it won all of the elections. While there are many people who disagree, gold has now become the international currency of choice. It has become, once again, a currency that has no logistic or linguistic barriers. Gold has given international businessman an advantage that government backed currencies and securities cannot, it has given people the option of owning a currency that not any government can regulate, or manipulate, or base on their economy or what they want you to perceive as their economy. Gold is Gold. Gold is rising in value against all currencies and while during the late nineties and early part of the millenium it was being sold off by central banks, it was a simple case of you don’t know what you got till it’s gone.

Who wants dollars or euros any more? You have to expect that with the rate the Fed is putting money out there, and buying it back in market bubble damaged packages that it is only a matter of time before it’s value succumbs and enter the Amero, or some other new currency that promises to gain value like a stock and be a lifelong worth while investment.

Listen, this is the information age and that is the very basis of all of our economies around the world and the problems that cause them to lag at best. There is too much damn information that suggests other than what the Dog and Pony show wish you to perceive. While economists would like you to believe that unemployment is less than 11%, I think it is better than 20%. You have to factor in that a lot of the construction and labor industry workers that are not union are paid off the books. That probably goes for a lot of small businesses. When those people lose their jobs, it does not count. Most of the people I still keep in touch with have either lost their job, lost a lot of hours, or are business owners barely making it.

Add to that mess the new threat of Obama care and you would easily arrive to the conclusion that until a given company has figured out what exactly it will cost them to have an employee, they will not be hiring. I think the full Obamacare is starting in 2014, I think? But I don’t know, I don’t know what it will cost to have to buy health insurance for Me and My Family, let alone employees and their families. It’s like having a threat held over you and you cannot react until it comes to life. So like many other business owners, I am not hiring until a clear picture and cost analysis is readily present. I called health insurance companies, doctors, lawyers, NO ONE KNOWS.

On top of that, many jobs are replaced by software, robots, and low wage, high quality employees in countries such as India, Russia, and other countries. Americans do not have the education or job training as these low wage competitors. With the internet making them readily available for tasks such as software development, call centers, etc. It is no wonder why any smart company that answers to shareholders would ignore this offering. Employees cost money, don’t want to work, have little skills, and now with the health insurance threat, it is much easier to hire a temp employee in Italy for $11 per hour thant works for 8 hours a day and gets the job done, than it is to pay someone $40,000 per year, plus all the added costs the government put’s on top of that…..It is ridiculous. So anyway, with jobs going away that will probably never come back, it leaves a big hole.

Beyond that, there are endless fundamental problems with our economy that will keep us on a steady decline for the next decade. Any logical analyst must consider that our resources are depleting, and that our opportunites are depleting as well. What is happening now is that the rest of the world is catching up. Emerging markets are gaining traction and the economy is no longer based in a single country or region. Our economy is now part of the larger World economy and we are not as competitive, not as educated, and not as attentive as we need to be.

The world economy is a vacuum and it is sucking a major part of our economy away in terms of trade deficits, manufacturing deficits, and currency devaluation.

Those are the things that make gold a sure bet and I believe it is going to rise in value even beyond what most people will predict. It is going to be the chosen currency during the infancy of the new world economy. In fact, I fear it may get to a point where we cannot even afford it. I don’t even belive we have it. If Fort Knox and the federal reserve had a large store of gold, it would have been accounted for to offset our huge deficit. America’s economy is just a huge debt.

The real effect of all of this will come in the next 5 to 10 years, when the government runs out of tools it has to keep the economy hanging by it’s thread. The low rates will not benefit anyone. There is no money to go around as it is leaving our country faster than it is being printed.

Anyway, we are talking about Gold here, not politics, not the world economy, but those are all of the things contributing to it’s increasing demand..

At the end of the day, the world we live in is unstable. Gold has always been stable and that is what the people choose, stability. There is no paper or metal or other material that offers the easily recognizable value and stablity as gold and it will surely pave the way to the future economies that replace our tattered,  inefficient, and outdated economic policy.

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About CT Gold Buyer
Owner of CT Gold Buyers in Wallingford, CT. and USA Gold Refiners.....

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