Friday, 23 September 2011

Investing Frenzy is silver and gold

Investing Frenzy is silver and gold

In the long run gold and silver will do very well that investment is expanding impending doom in the world economy. The price of gold and silver, to appreciate faster than inflation erodes the value of other asset classes, much faster. How to realize the middle classes in developed countries, what happens in their purchasing power and savings for retirement, there will be a gold rush. It will be a buying frenzy, the man goes for gold and passengers of the Titanic was for a place in a lifeboat. And just as there are not enough lifeboats for everyone on the "unsinkable" Titanic, there is enough gold for all.

After the Titanic hit the iceberg, there was no way to save him. In the budget debate of 2011, Congress has no obligation to reduce, or even the PAC, the rise in public debt. The U.S. economy is doomed to sink. And take the rest of the world economy.

U.S. gross domestic product (GDP) is 23% of global GDP, while the U.S. population is about 5% of the population. Where the interests of the spiral of debt on the hope of the payment obligation is U.S. Treasury bonds no longer so sure it for decades. It's time to buy gold Soon we reach the level of frenzy and the price of gold began to blow bubbles. Continue to be inflated for years. Do not believe those who are already in the price of gold will be a bubble, or that every new high the peak is, you never get to say in your life. Consider how much time the Internet bubble or the housing bubble.

The money will be faster than public opinion to react. And the money will go for gold, no money, because at current prices, only $ 9000000000 in physical gold on the floor. Not close enough for all the tens of thousands of millions of people seeking refuge from inflation and falling markets, to protect. There are only about 40 million dollars in physical silver yet. It is less than half of 1% of the value of gold. And there will be enough gold for all. Only 2 billion to buy with the money, the price of silver through the roof would send.

Because many people think of money, such as industrial metal, the price of silver is vulnerable to a withdrawal, it is clear that the world economy will fall above the level of the recession and spiraling into a deep depression, deeper than the Great Depression of the 1930s years. But in the long run, the money is not better than gold. If you put the buying frenzy for gold in many it is expensive on the market because they have been overheated in the real estate markets in the early stages of bubbles. Just as people could not save fast enough to pay the face of rising real estate prices are not able to save quickly enough to buy an ounce of gold. Many opt for the money, a few grams at a time, before the price continues to rise.

When choosing an ounce of gold for $ 3000 or more ounces of silver from $ 100 to $ 150 per ounce, the choice is easy. $ 150 --- So begins the madness of money, and the price bubble begins to inflate the prices.

However, silver has many industrial applications, for which there is no substitute. If millions of people worldwide are hoarding money, start physics, physical shortages are acute. Industrial users, to survive the crisis must have money to produce their products. I think, increase the frenzy of money, a percentage, by far the gold buying frenzy that precedes it.

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