Is the Gold Rush Over? - By: Mike Emerson

If you have not been hiding in a cave for the past few days and weeks you would have noticed that gold and silver have gone up persistently. Throughout this same period of time, there has been an expert either on the tube or in print explaining why gold and silver can't keep going up. In the past I might have agreed, but we live in a new world were new rules are being carved out. If those looking at current gold and silver prices are basing their judgment on historical norms, then they are living in a box and do not realize that is a fools errand.

But things have evolved, the vast number of industrialized countries are in debt for more than they can pay and have decided that the cure is to devalued their currency The United States has taken the lead in this as as evidenced by the dramatic fall of the dollar against major currencies in the previous month. This is not transitory as the Federal Reserve has already announced that it plans to turn on the printing presses in order to give the economy a jolt The evidence imply that the previous $2.3 trillion printed has done nothing to make economic activity pick up, and this latest round most likely will have the same final result..

It is probable that the objective really is different then what we are being told and the money printing is basically a means to devalue the currency to reduce the value of the debt. The U.S is running budget deficit of $1.5 trillion a year and despite of how much the dollar is devalued, paying of the debt seems illusionary at best. The issue is that others can't sit by idle and observe their currencies and domestic industry suffer the ramifications, which could result in all out currency war.. This is reminiscent off what occurred during the great depression when industrialized counties adopted protectionist policies to safeguard domestic interest. At that time the world was mostly using the gold standard and currencies could not be used to fight the import-export war. Today currency instead of policy is the weapon of choice.

Were does this leave gold and silver? It is one of the only investments that merits attention at this point because as countries become more desperate so will their actions. Gold and silver will act protect you purchasing power and wealth when numerous currencies are on the precipice off the abyss. There are individuals that believe that this situation will be short lived, perhaps this is only the beginning Yes, gold and silver have gone up substantially, but this time is different as investor flock to the precious metals as a safe haven for further financial instability.

About the Author

I have trade market for thirty years and enjoy witting articles about Investing In Gold and Silver and the stock and Forex markets. If you like ti read more of these articles, please visit Investing in Gold And Silver

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