Why is gold the number one investment that America’s Bubble Economy recommends to position investors for both wealth preservation as well as profit potential?
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Announcer: Why is gold the number one investment that America's Bubble Economy recommends to position investors for both wealth preservation as well as profit potential?
David Wiedemer : We have three main asset classes today in the United States: bonds, stocks, real estate. All three are very dependent on interest rates. In other words, high interest rates mean very low values for stocks, bonds, and real estate. Low interest rates mean very high values for these assets. As you print money, you create inflation. As you create inflation, you create very high interest rates. Those devastatingly high interest rates destroy the value of those three assets, but at the same time, gold is not interest rate dependent. Gold is sort of, think of it... it used to be just a stored value, this is what our monetary system is based on. Now, it's sort of an asset of, I don't want to call it of "doom," but let us say when the economy is bad, gold is a great thing to hold. In this case, what's happening is as the value of stocks, bonds, and real estate plummet, people don't want to hold these assets. They sell them. The money has to go somewhere. Where's it going to go? Gold is the perfect option for them, because gold is going to be... there's only a small amount of gold now in the world and you put a huge amount of money into a very small asset base... it explodes in value. So here you have an asset that's exploding in value and at the same time is probably your best available protection against high taxation, inflation, all of the problems that can occur in a society that's having imploding value of their stocks, bonds, and real estate. That's why gold is so important and that's why I've always emphasized it.