The answer doesn't really matter - gold and silver are headed higher.
Consider these three scenarios:
1. Should the Eurozone sovereign debt crisis (and thus the banking crisis) be salvaged through ECB asset purchases of Italian and Greek bonds, the resultant inflation will push investors towards gold and silver faster than ever.
2. Should, in the alternative, the Sovereigns default on their debt thus causing an almost certain default of the banking system, people will want to escape paper money and financial institutions as soon as they can and rush towards gold and silver faster than ever.
3. Should, as is most likely, the ECB hold the line on money printing, the Fed will come to the rescue will more dollar printing - hastening the ultimate collapse of the global reserve currency and pushing investors towards gold and silver faster than ever.
Whichever way you look, the signs for gold and silver remain very bullish.
Interesting points there Sam. Were gold and silver not to spike, would that create a logical paradox and rip a hole in the fabric of spacetime?
ReplyDeleteMark - thanks for your comment.
ReplyDeleteI can't predict the future with 100% certainty. However, history shows the following 5 step cycle with regularity:
1. Empire rises
2. Empires fights wars and funds welfare
3. Empire overextends itself
4. Empire resorts to the printing presses
5. Currency collapses, along with empire, with the public flocking to gold and silver.
Somewhere between 3-4, this is the situation the United States now faces.