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| Thing to remember is that Gold behaves like a commodity when there is not a great fear of systemic failure of the current fiat money system. Moreover, it will take some time for investors to turn back to Gold when it was trading at about $1,900 or so and sustained about a 40% haircut from that level.
Thing to remember about fiat currency is that not much has changed from 2008. In fact if you look at the debt levels to GDP of most industrialized nations, they are in worse shape, not better. Only now we should have a better understanding of what happens when you bet the proverbial farm on government to clean up economic messes rather than the private sector which can create real value and worth.
IMO buy the metals in this area. You might have another 10% or so downside as Gold continues to slide with the other commodities as it is grouped accordingly, but I do not see much hope of getting out the current worldwide mess we are in and that will effect fiat currency going further down the road. It will take time for the market to realize that the Dollar is NOT the safe have it used to be. However, the US economic situation is not much better than the rest of the world. We just have the ability to print dollars to create a false stimulus to the economy. That is the one bullet the FED still has. | |
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Memories of 2008 are dancing in my head this morning.
