Where Are The Gold Bears Now?

It was not so long ago that analysts
and journalists were telling investors
to dump their gold investments

Gold was around $1400 at the time
and much hype was given to the fact
that George Soros was selling his
gold ETFs.

Now that gold is trading north of $1650
today where I ask are these so called
experts? Experts who have demonstrated
time and again their lack of financial basics.

Sell advice came at $900 , $1000 , $1200
$1300 and more. All failed and now that
the US has raised its borrowing limit you can
bet that $1700 , $1800 and $1900 will be passed
by as gold heads upwards and onwards.

Gold is rising for many reasons and the
major fundamental reason is Supply and
Demand. Countries of the West are printing
money like there is no tomorrow. And as you
print more and more money (borrow) to pay
your bills the repayment burden gets bigger
and bigger. And at the same time the value
of your curreny falls. As your currency is
debased in this way gold starts to rise. Add to
this the fact that gold supplies are falling
worldwide as demand is rising then you have
a bull market in gold.

We all know that Greece , Portugal and Ireland
are in great financial difficulty. But now , Italy
and Spain are entering the trouble zone with
the likelihood that more bailouts (borrowing)
are on the way. The clouds are gathering
and if just one of these countries gets into
problems like Greece then you can see stock
markets fall heavily. And since European
countries are closely linked to the US and the
US to China and Asia contagion will set in.

When will this happen? I do not know but you
can be sure that it will and when it does no-one
will escape unless you hold gold or gold stocks.

I have written about this many times and each time
the situation gets worse whist most people fiddle.
You need to protect your savings and investments
right now - that`s all I can say.

Only a few days ago the US has avoided a debt fault
by increasing their borrowings by $2.4 Trillion. This
increase ensured that public servants , army and certain
infrastructure projects can go ahead. If this didn`t frighten you- it should have.
It should have opened your eyes that the biggest economy on the planet
needed to borrow yet more money to keep running. Some smart investors
are starting to take note and have started picking up gold for protection.

History , sadly , does repeat itself and you may have heard of the Weimar
Republic and yes even Zimbabwe. They printed money like no tomorrow
as the US is doing today. The debt rises and when interest rates rise
you are in serious trouble. remember the fall of the Roman Empire? It was
the debt that caused the breakup - and it will be the debt that sees the
US economy crumble.

Some form of QE3 is on the way. QE3 is more money printing which is
more borrowing. This is a spiral that leads to only one conclusion. And
by now you should know that conclusion.

Protect your investments.