Can the case be made that this a good time to consider owning gold?
*Dow Theory Letters, by Richard Russell, June 23, 2008
“The US national debt is now $9.32 trillion. It has increased by $580 billion over that last 12 months. The interest on the debt is now $500 billion a year. The US national debt is compounding in reverse. The unfunded liabilities of the US are estimated to be $70 trillion. Looking ahead, I don’t see how the dollar is going to trend (long term) any way but down.
Now the US economy is in trouble. It will require massive government spending to even begin to stabilize the economy. The US in engaged in a wasteful war. The expenses of the war are ‘hidden’ off budget. All of the above go towards weakening the dollar, if not immediately then over the longer term.
The case for holding (not trading) gold has never been stronger. Since mid-March, 2008, gold has been correcting. On May 1 August gold struck a low of 855. Gold rallied, then declined to register a higher low at 850 on June 17. From there gold rallied again. The current upside target for gold is 933 recorded on May 22. If August gold can better 933, I believe the base will have been completed and the correction will be over.”
*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. 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.