Don’t Think, Buy Gold

That is what the pundits and advertisers keep pushing in the media.  There was a time to BUY gold, like in 2002 when Washington was out of control and wars were being started.  That period ended in March 2008 when it became apparent that change was coming to town. Gold went up some 400 percent during that interval.  The media hype has been fervent, with various scenarios being pushed but the underlying fact is that the 400 percent rise makes the agrument easy for the non-thinkers. Since March 2008 gold has gone up some 25 percent and you would think the world has ended and it is true, the stupidity in Washington has ended.

The passing of Health and Financial Reform, the second being done today, are the two building blocks for a nation that is putting its act back together.  As all of this unfolds the stock market continues its run down to a value base in the 890 area on the S&P and the 8200 area for the Dow.  Once this occurs, the next act will be a huge move of money from gold and hard assets into stocks and the dollar.  In my opinion the initial stage will be quick with $ 400 being easily evaporated from the gold market before the long-term downtrend in gold starts.

Leave a Reply

Your email address will not be published. Required fields are marked *

twenty − seven =