What is the basic reason to own a large amount of gold right now?
*Dow Theory Letters, by Richard Russell, June 11, 2008:
"The US national debt as of May 7, 2008, was $9.35 trillion. Just
the interest on the US debt is now $500 billion a year -- which is
equal to the cost of the Iraq war for five years. The cost of servicing
this outlandish debt grows every year. Since September 2006, the debt
has increased at an average of $1.46 billion per day!
The national debt is now eating this nation alive. In order to keep the
US financially afloat, foreign billions are needed daily. But even
incoming foreign money is not enough. In order to service the debt, the
Fed will have to create more and more fiat currency.
This is one of the basic reasons for the long-term decline in the
dollar. It is also one of the basic reasons for owning gold. Obviously,
as more and more currency is created, the value of the currency
declines and inflation (at various rates of speed) becomes ingrained in
the economy. The Fed may fuss about the inflation rate, but they never,
ever, talk about the dollar's loss of purchasing power over the years.
And here's why. Over the last 36 years the dollar has lost 80% of its
value. Since 1913, when the Federal Reserve was inaugurated, the dollar
has lost 95% of its purchasing power.
Americans are now attacked by two relentless enemies -- taxes and
inflation."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
Call Now
Let us help you:
Personal Advisors
available now at
1-800-444-8317