When investors begin to purchase gold as a means of protecting their wealth, it is time for citizens to take notice. A surge in gold investments is a leading indicator of trouble ahead for the economy.
Upon the strength of heavy investments by Russia, the U.K., and the United States, gold rose to its highest price in history on Monday.
(AP Photo/Mark Lennihan, file).
Historically this kind of dramatic surge is a signal that stock markets are on shaky ground. And when the markets are shaky, national economies are standing on quick sand.
For ten consecutive years the price of gold has gone up. The last time the metal experienced this kind of long-term gain was in 1920, during the height of 'the mini depression' brought on by the policies of 'progressives' in Congress and the White House, the most notable of which was Woodrow Wilson.
The U.S. economy suffered under the policies of Wilson and the progressives, and it took the election of Warren G. Harding in November of 1920 to reverse the damage that had been done. Harding's policies set the nation on a course that led to 'the roaring 20s'--a period of unprecedented prosperity and economic growth.
When the economy is strong, gold and other precious metals tend to fade as a favorite of investors. But when gold begins to surge, the historical record shows that investors are feeling squeamish about stocks and bonds and the economy in general.
This is precisely what is happening currently.
As Bloomberg reports,
“It is clear that there is extremely strong interest in gold,” said Gavin Wendt, senior resource analyst with MineLife Pty Ltd. in Sydney. “This is all a direct consequence of investors seeing gold as a more attractive investment class, and this trend will only continue to grow.
"Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged at a record 1,307.96 tons on June 18, according to the company’s website. Globalholdings of the metal by ETFs increased 0.2 ton to an all-time high 2,044.87 tons on June 18, according to Bloomberg data tracking 10 providers."
The price of gold now stands at $1265.30 per ounce and is expected to continue to climb.
Other precious metals such as silver and platinum are also rising in value. And palladium rose by 2.8 percent.
As long as investors remain worried about currencies, stocks, and other investments, gold and other precious metals will remain a hot item. And rather than expressing confidence in Barack Obama's assertion that 'the stimulus is working' and that the U.S. is rebounding, the people who keep their ear to the ground with regard to the stability of the economy and the markets are proving by their actions that they have no optimism about the nation's prospects for a recovery any time soon.
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Comments
But the Fed undermined the prosperity of the 20's through its easy money lending policies creating a massive bubble in the economy (sound familiar?) which led to the crash of '29 and the depression; which was then made into the GREAT depression by FDR's massive taxing, borrowing, spending policies.
The leftist Keynesians try to claim that it was the massive government spending of WWII that restored the economy, and they are just correct enough to be taken seriously. But in fact it was the massive influx of foreign cash from allies buying our armaments and other supplies for their own war effort that turned the economy around.
You see, there is a funny little economic law that says: When you are broke, you need to earn more or spend less. Currently Obama and his minions in Congress are doing neither.
Gee, I can't imagine why we want to lynch them all.
Stan--the problems started with the Fed, which was put into place before Harding and Coolidge. Harding, in fact, stopped the depression of 1920 in its tracks within a year due to his spending cuts and tax cuts.
Anthony....let us not forget who controls the worlds gold market, and sets it's daily price on the worlds gold exchanges...it's that mainstay of the New World Order, backer of A. Hitler,sits at the head of the Bilderberg group, owns most of the worlds banks or has controlling interest in them... including the federal reserve,and owns controlling interest in most of the Bullion banks....it's the all and mighty powerful Rothschild family !
Phil--Unless I am having a temporary attack of early onset Alzheimer's I think there are ways to get around those high prices.
Anthony...it's not easy, there's no middleman involved, and you don't pay taxes on it until you cash it in, it involves lots of elbow work, long days, mosquitoes,stinging black flies,deer flies, heavy equipment,high fuel prices for the equipment,lots of maintenance on the equipment, short tempers with cohorts when things go wrong, two weeks of work in remote locations and then one day off, over sight by a myriad state and federal agencies,and environmentalist watching your every move, lawyers fees, and all the time and effort to find investors, and the time and effort to keep your current investors informed and happy....it's called gold mining....placer or hard rock....but it's all well worth it !
Phil--Well, actually I had something in mind that did not involve actually going mining.
Anthony....you never know....there's always beginners luck !lol!
Anthony....I urge everyone to buy GOLD right now while it still available and the prices are low....GOLD is going to skyrocket. Everyone must buy actual gold .... not gold on paper i.e. gold futures etc. Once bought...put it into a safety deposit box. I suggest that people who have them... cash in their 401's in order to do this! Also I suggest that everyone pull their monies out of the banks and put their monies into reliable credit unions. If your 62 and haven't started you social security yet....do so immediately....don't wait till your 66 or older! That just my suggestion....it comes from where I see this nation headed !
"Gold surge--a leading indicator of trouble ahead "
"For ten consecutive years the price of gold has gone up."
can anyone remember who was president for 4/5ths of those ten years? and what was his party affiliation? it sure was a leading indicator of Bush's economy crash.
GOLD prices has nothing to do with who sits in the White House or who runs the House and the Senate!
The international bankers are the one who decides on our laws and the way this country will be run. They believe in Keynesians economics. They don't care how much money they have to print to pay for everything. Whoever gets the new money first has the greatest purchasing power first. By the time the average Americans receive the money, it has been devalued. If you really think about it, it is a hidden tax (inflation tax). Because the more they print, the more your dollars will be devalued which means American will have to work longer just to pay for everyday expenses. This is why gold and silver prices are going up. It doesn't matter who is the next President because the international bankers has already decided it for us. Remember whoever controls the country currency controls the country... by Thomas Jefferson.
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