Is now a good time to diversify with gold?
*Dow Theory Letters, by Richard Russell, August 3, 2009:
"To wrap it up, this is a difficult market, because there are
convincing arguments on both sides of the economic-equation. Wise men
disagree today more intelligently than any time I can remember over the
last 50 years. The Obama spend-and-tax strategy may work, and then
again, it may prove to be a disaster, not only for the current
generation but for many generations into the future.
Personally, I think Obama is a smart guy, and I believe he means well.
But doing what Roosevelt did during the Great Depression is not going
to work today. Roosevelt never had to deal with trillions of dollars in
spending and borrowing and debts. There's a huge difference when you
compound millions in debt and when you compound trillion in debt. The
US had a manageable balance sheet during the Great Depression. It's a
very different situation now.
To keep it simple, I'm thinking as follows -- nations are printing
trillions in their own currencies as they attempt to stimulate demand
and keep their currencies 'cheap.' I think the future of fiat
paper money is doomed. At some point, people will no longer trust
'government -issue' junk money. And then what's left? GOLD."
*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.
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