This is perhaps one of the most asked questions among gold investors today. But the answer is not a simple one. It goes to the basics of which people invest in gold in the first place and what form of gold they buy.
It’s becoming clearer and clearer that there is a large blind spot in the minds of financial people regarding this probability. Only financial those who have been in the markets for 40+ years understand what can happen.
With Germany’s leaders telling us that the exit from the Eurozone by Greece no longer holds terror for them, we understand that they are prepared for such an eventuality.
As global growth is being downgraded by the I.M.F. from 3.5% to 3.1% fears that the Eurozone is already in a recession and the U.S. is likely to enter one next year, are growing.
In Part I of this series we looked at the decaying state of confidence and how this is assisting in the deflationary process that is slowly, inexorably, moving forward, with limited action from central bankers and very little action at all from politicians.
For the last few years we've watched as the Credit Crunch morphed into the Sovereign Debt crisis in Europe, which may re-cross the Atlantic to hit the U.S. Treasury market.
While the B.R.I.C.S nations are contributing to the I.M.F.’s funding with the purpose of shoring up the global financial system, they’ve stipulated that they want more power in the I.M.F.
For many years now gold and silver -by its pattern of following gold wherever it goes- have been treated by traders, investors and central banks as a 'counter to the U.S. dollar' and quite rightly so; this definition, however, applies primarily to the long-term value of the dollar and not simply to the daily gyrations of the dollar's exchange rate.
