, IncGold prices have been the recipient of good fortune as the result of misguided policies being implemented by the US government. These policies have exacerbated problems in the manufacturing and jobs sectors, weakened the strength of the US dollar and added billions or trillion to the national debt. Now as China and the US both consider tighter controls on their banks, gold prices are likely to begin moving upward again as investors look toward its stability to protect their wealth.
Some analysts are starting to see the Federal government’s stimulus and bailout money as only masking a more serious problem, a sort of “asset bubble” where easy access to money has caused over-stimulated growth. The weak dollar and the enormous national debt are, by extension, the result of this and have create a vicious circle; bailouts add to the national debt, which weakens the dollar, necessitating more bailouts. This cycle cannot continue and its end is bound to be painful.
How should you respond to this potential of an asset bubble? Gold prices have risen due to bad government policy and many predict they are prepared to rise again. Investing in gold bullion or certified gold coins provides a potential source of financial protection that doesn’t currently exist in dollar based investments like stocks or real estate. As gold prices stand near the $1,090 per ounce level, they are still little more than $125 below the all-time high, which some forecast will be broken again this year.
Gold prices indicate that bullion and certified rare coins offer potential protection against further destabilization of the dollar and other currencies. Investors should consider moving out of heavy holdings of dollar based commodities and purchasing gold before prices can begin a new upward climb.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
