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I don’t know what is holding people back from investing in gold and silver.

February 23, 2011 – I don’t know what is holding people back from investing in gold and silver. Take a walk down Any Street in Anytown USA and you will get a good look at the real economy.

Wounds from the housing market crash are visible everywhere. Unemployed in three piece suits stand in lines for a shot at a job flipping burgers. Room is running out in makeshift communities under the four lane overpasses. And there is not a speck of all that stimulus money to be found.

We Americans, however, are believers by nature. We trust the government to better understand complex issues so we believe it when we are told things are getting better. We weathered the bursting of the tech and housing bubbles, and we are watching as the states slide dangerously close to default, threatening to topple the $2.8 municipal bond market. What will it take to snap investors out of their daze? Perhaps “the most dangerous bubble of all.”

That’s what market analyst and advocate of long-term investor safety Martin Weiss calls the looming crisis in the bond market. Over the last decade through “misguided government supports, subsidies, bailouts or sheer greed and stupidity” the Fed has repeatedly pumped up the bond bubble by cutting rates. When the bubble bursts, real money will become nearly impossible to come by, and all of the drivers of our economy will instantly come to a standstill.

Weis sees three immediate threats that could burst the bubble: inflation and inflation fears, deficit inaction, and dollar collapse. All three are part and parcel of Bernanke’s fiscal policy. When investors “see the value of their dollars collapsing, the only rational response is to dump their holdings — driving bond prices down and interest rates skyward.”

Only investments in gold and silver will weather the bursting of the most dangerous bubble of all.

Shannon King

Senior Staff Writer – GoldSilver.org

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