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Time is running out to take advantage of the current slump in the price of gold coins.

May 10, 2011 – Time is running out to take advantage of the current slump in the price of gold coins. Early signs today are that the price of gold is already starting to rebound. Last week, when gold looked like it was streaking towards $1600, big money cashed in, precipitating the reversal. But central banks around the globe are quickly soaking up the excess and the natural drivers of the market are taking back control.

John Williams, editor of ShadowStats, said in an interview with the Gold Report that “The US is really in the worst condition of any major economy or country in the world … accounting for unfunded liabilities for Social Security, Medicare and other programs on a net- present-value (NPV) basis indicates total federal debt and obligations of about $75 trillion … [or] five times the gross domestic product.”

The dollar’s strength – and the persistence of our AAA rating – is nothing more than an anomaly of a rating system that is based on lowest risk of default. The dollar is the world reserve currency so the US is incapable of default as long as it can simply print money to pay its debt. Thus we set the benchmark for the ratings – at least for as long as the dollar remains boss.

Once other nations start insisting our debt be held in other currencies, however, our rating will plummet. Most people believe that it would take a monumental concerted effort around the world to dethrone the dollar, but that is simply not the case.

Consider the talk that’s been going around about OPEC changing its base to a basket of currencies. Not only would that instantly weaken the dollar’s position in the global market, it would cause energy prices to skyrocket stateside and hasten the death spiral of our economy.

“Shy of any short-term gyrations, the US is really in the worst condition of any major economy and any major country in the world and, therefore, in a weaker currency circumstance,” Williams said. “I don’t think you have until 2012 before this gets out of control and there’s hyperinflation … we’re seeing all sorts of things happening now that are accelerating the inflation process.”

Big money may have cornered most markets, but eventually that will blow up in their faces. Those who take advantage of the dips in the price to invest in gold coins will have the last laugh.

Kevin Johnson

Senior Staff Writer – GoldCoin.net

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