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While popular sentiment is lamenting the “bad news” in gold and silver prices, bargain hunting smart money is coming back to the market.

May 10, 2011 – While popular sentiment is lamenting the “bad news” in gold and silver prices, bargain hunting smart money is coming back to the market.

The violent drop in silver prices was clearly panic driven as investors, egged on by big money, recalled past bubbles bursting. But it is time we stopped listening to those who have an axe to grind and instead stay focused on what really matters. Thomas Pynchon said in his book “Gravity’s Rainbow” that “we have to look for routes of power our teachers never imagined, or were encouraged to avoid.”

Power tomorrow will come to those who saw today’s economy for what it truly is, those who disregarded the rosy picture painted by mainstream media and took a strong preemptive action to protect their wealth. The bare fact is that we are “not getting a fair analysis,” ShadowStat’s John Williams said in an interview with the Gold Report. “We have some particularly poor-quality economic reporting right now.” Whatever upside is being reported is “largely tied to short- lived stimulus factors.”

“Without significant growth in credit or a big pick-up in consumer income,” Williams said, “there’s no way the consumer can sustain positive economic growth or personal consumption, which is more than 70% of the GDP.”

The Fed may keep us afloat for a while longer with its antics but the tipping point is just around the corner. Our AAA credit rating exists only because under the current global monetary system we alone can print money to pay on our dollar-based debt. Default is virtually impossible under those conditions, which is why we set the benchmark for the rating. But when nations start to insist our debt be based in other currencies that advantage will vaporize and our rating will plummet.

That is no remote possibility and it won’t take an inconceivable global consensus to begin. Oil represents an enormous proportion of global trade, and talk has it that OPEC is already considering changing its basis to a basket of currencies. Without the dollar underpinning that trade inflation will immediately skyrocket stateside and the dollar’s value will plummet. “We’re seeing all sorts of things happening now that are accelerating the inflation process,” Williams says.

The powers that be are driving our economy straight into the ground, but future power will belong to those who broke away from traditional advice and assured the preservation of their wealth. You can begin by seizing the opportunity to invest heavily in gold and silver at today’s bargain prices.

Shannon King

Senior Staff Writer – GoldSilver.org

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