Why Buy Gold Now, Forecast $4,500

Both the US and EU have made it abundantly clear that they have no intention of implementing an intelligent coherent plan. Instead they will print because it's the easiest thing for them to do, in droplets at first and then in torrents. That will destroy both the dollar and the Euro and it will ultimately drive gold higher than anyone anticipated just a couple of years ago. What's more the general public has yet to dip their toe into the gold bull market, but they will as they search for shelter from the storm. That phase of the bull market will drive gold to a minimum of US $4,500/ounce with relatively few interruptions along the way.

Finally a lot of people are convinced that we'll see inflation, but if deflation occurs a lot of people believe that gold must decline. It's worth remembering that during the 1930 -1932 deflationary depression gold rallied more than 60%. I am absolutely convinced that the debt bubble must burst and many of these insolvent countries will default as economies shrink and debt rises to unsustainable levels. Currencies will become worthless, and whether any potential deflationary effects are short-lived (like 2008) or long-term (Japan), I still want to own gold. Along with the debt bubble bursting will come a severe loss of confidence in the fiat system... and gold is a great hedge in this scenario. It is the only real asset that will rise in value. In a world where everyone is totally caught up in the here and now, no one expects or believes that such a thing is possible. "They will never allow that to happen" is the mantra that everyone repeats to himself or herself. Unfortunately the market is bigger than they are, a lot bigger, and when it rolls over all the printing presses in the world won't stop it. That's when you'll be glad you bought gold today...more