Why Gold Will Continue To Rise
Here's an excerpt from the most recent Delaire Report which can be subscribed to free of charge here.
If we already know that the main driving forces behind the higher gold prices include massive government debt issues, currency devaluation combined with general global economic problems plus geo-political tensions, then it is logical to assume that as long as these issues are not resolved, the price of gold is unlikely to fall. However, this is merely a rather simplified view.
When we look deeper and see that governments, especially the USA, have been debasing their currencies by their expansionary monetary policies we should understand the ramifications of this. What this has done and will continue to do is to make the US dollar weaken which will cause the value of any holdings of US dollars become worth, less.
In the last ten years the US dollar has already lost more than 30% of its value when compared with other currencies. But, ultimately, since the US dollar is the reserve currency of the world this devaluation will drive the prices of commodities higher.
Now, not only do governments have to find a way to stimulate their economies, they also have to find a way to deal with the burgeoning debt as well as high unemployment. But, in addition, as commodities become more expensive, the rate of inflation is going to increase. And, when these higher prices effect the price of staple foods of many poorer nations, we can expect to see unrest amoungst the population.
So, now in addition, to huge national debt, currency wars, slow GDP growth, high levels of unemployment, increasing inflation we are also going to see more geopolitical turmoil. Unless you believe that this scenario is not nearly as bad as it seems and a remedy can be found overnight, then I strongly suggest that you add gold to your investment portfolios.



