Economists remain concerned since gold began its sell off after reaching its peak in September 2011 at nearly 1900 dollars an ounce. Shortly after, silver began its descent In February 2013, going from a high of around 32 dollars an ounce to 19 dollars an ounce. But the continued sell off of these precious metals may indicate far worse economic issues, that are soon to come.
Many economists are saying that the gold bubble, like the housing bubble that happened in 2008 has now burst. The gold bubble bursting in September 2011, was sure to cause deflation and massive job losses. But the fed quickly stepped in to print more money hoping to counteract the deflationary effects. Despite their efforts, gold and now silver continues to decline.
Many things have taken place, since 2008, that could be factors in the decline of these precious metals. For instance, shortly after the economic collapse of 2008, Obamacare was signed into law. This required all businesses who had full time workers to pay for health care on each worker. But since the law was only focused toward full time workers, many who worked full time, were switched to part time status, working less than 35 hours per week. This helped business to overcome the added costs of Obamacare, but the effect on consumers would prove to be devastating.
As gas prices continued to rise, it started to make sense for more and more businesses to have a workforce of part time workers, to avoid many of the extra costs. So even though the unemployment rate is steadily dropping, consumer buying power is also dropping, while inflation continues to rise.
This would explain why the enrollment numbers for foodstamps has gone up nearly 75% since Obama became President in 2009. As inflation increases , the cost of living goes up, allowing more families to become eligible for assistance. The combination of less hours at work, and the increase in the cost of living gives the consumer limited buying power. More money would need to be spent on necessities.
The evidence of this can be seen in the decline in the prices of gold and silver. This was the buying power in action, that US consumer used to possess.That extra money spent on an investment to be saved for an emergency. With the money, or buying power no longer there, this huge sell off of gold and silver tells a very different story about the state of our economy, as well as the economic condition of the world.
One reason for the sell off and the decline in demand for precious metals is likely due to the added stress on families trying to make ends meet. The precious metals that were once bought as a cushion against the value of the dollar, may now need to be sold to help keep up with rising costs. The demand for these metals are down as the consumers are being forced to focus on need instead of want.
The other main reason for the decline in gold prices has to do with world affairs. There are fears that struggling economies around the world will start selling off gold in exchange for bailouts. Gold investors were also worried when, China who is the largest buyer of gold in the world, recently reported slower then normal economic growth, making the investors wonder if China will need to sell off their gold as well, causing the demand and the value to plummet.
For a while, gold was sold off by private investors in the US, in exchange for the more affordable silver. But now that silver is in decline as well, it could indicate that the economy may be in worst shape than what a lot of people may realize. When the inflation bubble bursts, which some economist believe will happen on July 1st, the economy will go into a rapid deflationary spiral.
To make matters worse, a new currency law will take effect on the United States Dollar in July. This will govern how foreigners can use the dollar. How much they buy with it and so forth, making the investment in the Dollar less attractive. Additional fees will be put on the use of the Dollar, making it a less affordable compared to other options that are out there.
But what would happen if gold and the Dollar fall at the same time? Gold and the Dollar did correlate together at one time. It happened in 2002, but luckily it went in a positive direction. They both went up.
Even though it is most likely that as gold goes up, the Dollar value goes down, it is not unheard of for both of them to take the same track, going the same direction up or down. The reason why gold and the Dollar could both go up, would be because investors feel equally confident in both them at the time. Or the investors could split, some feeling more confident in one, than they do the other. This is during times of a healthy economy. But it is also not so unheard of then for both the Dollar and gold to go down in value at once. This could also happen as investors lose their faith in both of them. But it would take a world wide event, like what may be happening now, to make investors lose so much confidence. This would cause a devastating world wide collapse. And what is happening now may be the onset of that collapse.
As economies are struggling around the world, more gold as well as silver is being sold off bringing the supply up, causing the prices to drop. Underemployment, Obamacare and high gas prices, contributing to rising inflation along with the new currency law, are making the Dollar less attractive to foreign investors. In fact many foreign countries are now putting limits on how much can be traded with the Dollar. For the first time, World banks are becoming more and more reluctant to give out loans to foreign countries, based on the number of Dollars on reserve.
The Bible says in the end days, they will throw their gold and silver into the streets because it will be worthless, Ezekiel 7:19. This clearly indicates a world economic collapse of enormous proportions. This will be a time never before seen in the history of the world, as precious metals have always held some value throughout the ages. As gold and the Dollar are being currently used as world currency, this will no doubt happen when they both collapse simultaneously. The Bible says that Babylon will fall in one hour and without warning.
This economic collapse is set to happen during the onset of the tribulation. When the bride of Christ is gone and the Antichrist rules and reigns. Jesus promised he will come and save his people from the hour of tribulation, through the rapture of the church, Revelation 3:10. He promised to save all those who ask Him to be their Lord and savior and who are willing to turn away from their sins.
With the onset of gold and the Dollar both going down in value and being rejected or sold off around the world, it is apparent that the tribulation hour is at hand. So get your heart ready and ask Jesus to forgive you of your sins. The hour is late, Jesus is coming to get his bride. Don't be left behind to see what will happen to this world. Ask Jesus into your heart and allow him to save you from what is to come. Make the decision for Jesus today.