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The price of gold is going up, way up.
But wait! I'm not talking about the price in fiat currency, this is about purchasing power. Right now you can trade in a single one ounce coin of gold and get enough fiat money to buy an old and very used car. Right now that one ounce of gold will only pay the average family's rent or mortgage for just one month.
Please! Give me a break. There are billions of people on this planet, their collective wealth is measured in much more than one month rent allotments and there's a lot of people with more than just one old junker of a car. Gold is recognizable money, it is a historic preservation of wealth which embodies safety and status. Gold doesn't need a middle man, it doesn't require a broker, or a lawyer, or a govt, it doesn't need some counter party to pony up with their promises. Gold is worth a whole lot more than what it is selling for today and much more than the famously talked about "man's fine suit", not today and not with what the world is facing in these current times.
The purchasing power of gold is on the launch pad, it is set to rocket ahead. A single one ounce gold coin is going to be a very powerful store of wealth and very soon. Based against gold there is going to be the worst deflation the world could ever imagine. The price of homes and the cost labor is going to drop hard against the price of gold. Everything is going to get cheaper in terms of its price in gold. Stock will roll over even further and nearly all traditional investments will see deflation in terms of gold as people rich and poor get rid of what is of no use and march toward safety and status.
Buy gold now and by the end of this decade you will be called a genius. Gold is going to be used as money, side by side with those few fiat currencies that survive the hyperinflationary storms now brewing. I expect that in Asia, we may see a move to make business contracts written in gold. I expect that in Africa, Latin America and parts of Europe you will soon see markets which buy and sell their products with gold, as commonplace. It will take the better part of ten years to reach this point but the day will come when your net worth will be measured in gold not in fiat currency.
The price of gold is going up, way up. Buy gold now or lose your shirt. For those who ignore history and are slow in protecting themselves, the coming times will not be kind. Most assets will become either worthless or simply worth a whole lot less. Employment will be hard to come by in the future and the jobs there are will pay very little in terms of purchasing power. For those stocks and other traditional sources of investments that do hold onto purchasing power, as the fiat they are denominated in declines severely, there will still be taxes and those taxes are likely to increase. Few businesses and few individual investors will weather the hyperinflation now on the horizon without holding a very significant position in physical gold and physical silver.
Those selling now into the three and five fold increases we've seen over the last many years will be more than just kicking themselves when prices go up thirty and then fifty times. Those without gold for protection will be facing serfdom and possibly even near slavery living standards by next decade. Many will lose everything in this financial crisis, some others will make it through. But there will be a few that in terms of purchasing power will become very very rich, buy gold now and join them.
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Originally Posted by joe_momma
