Gold has broken the $1,750.00 marker and silver is over $34/ounce. This is as of the end of black Friday. Now, we have the European Union which does not have a positive outcome or outlook for that matter as of the end of Friday.
How will the markets react after Black Friday ? The Dow Jones is OVER 13,000 as of right now. We can see both those invested in gold and those invested in stocks were confident their investment would prove to be better.
My two cents....... I'd look to see a sell off in the stock market before the end of the year. The dollar should go down as well. Before the election the price of gas in St. Louis, MO was about $3.00. It has now been as high as $3.30 in less than 3 full weeks following Barak Obama's reelection. The situation in Israel most likely influenced some of the increase in oil prices.
We are on the brink of a MAJOR change in the financial markets. When, I can't say for sure but deflation is before hyperinflation. Last year when Ben Bernanke printed all the money in the fall of 2011 it created deflation which is where there are so many dollars, no one wanted to spend them. Then this year, as hyperinflation was about to kick in over the summer, Ben printed more money. It will soon fizzle out though.
We are seeing a compounding effect here with Israel, Egypt, Syria (or the Middle East Crisis) , the fall of the American Dollar, Hyperinflation, and we are on the brink of a massive stock market sell off.
Land will not be and is not the best investment anymore because the government will just tax the heck out of people. It is not easy to buy and sell property right now.
Precious metals are your best bet. It might not have the highest return, but remember, at least you can put it in your hand and hold it. It's a very safe thing to have in these uncertain economic times.
No comments:
Post a Comment