Gold Outlook Favorable Over The Next 3 Years?

I can see no fault in the analysis done for this article. Debt around the world is massive and pervasive. Western Europe, the UK, the US, and Japan are in DEEP financial doo. The leaders of these countries act as if they have all the time in the world to address this horrendous problem. They don't. Apparently, they have not heard the old saying that:

Gold is the money of kings.
Silver is the money of gentlemen.
Copper is the money of workers.
Debt is the money of slaves.

Considering that the incompetent politicians of the western world and Japan have created this debt monster and that they have no real answer to it, the financial future of these countries is a lot more bleak than most of their citizens know.



Yes, that debt WILL roll over alright. It'll roll right over those who have spent more than they can earn or repay.

When politicians fail to grasp the simple laws of economics, we see the kind of financial situation that exists today. They spent like drunken sailors for a long time, hoping that they can enjoy all of the benefits of bringing massive amounts of pork home to their constituents while completely avoiding the responsibility of their actions. Their plan is obvious. They all want to enjoy the party while it is in full swing and then be safely dead or retired when the financial SHTF. Unfortunately for them, they have been too optimistic in this regard and less time remains in which to party than they ever thought possible. This is why a number of congress critters are bailing out and not running for re-election in 2012. They have seen the handwriting on the wall and know that it is only a short while before this financial house of cards comes tumbling down around our ears. When that happens, there will be a lot of VERY angry people looking to vent their anger on those whom they think have caused it.

If any part of this is funny, it is watching those who *think* that there is safety in ANY sovereign debt obligation. There isn't! Bailing out of European exposure only to take up UK or US exposure of the same type is just nuts. What happens in Europe will move on to the UK and then to the US. We will see some very serious consequences occurring in Europe shortly. Once it moves on to the UK that will be the signal to immediately get out of the US stock and bond markets. PMs and cash will be the best places to hold our wealth. Paper investments of all kinds will be decimated when this debt bomb finally explodes. I am hoping that the US dollar survives what is coming in the next couple of years. If it does, then holding dollars will be OK. If not, then we will have to rely on our PMs for preserving whatever wealth we have left. In no case will I be buying bonds of any kind. I might still own some stocks but these will be in the big mega cap names that pay dividends, have been around for many years, and that now receive a good part of their earnings from overseas. Think names like: AT&T, Coca-Cola, Pepsi, Altria, J&J, General Mills, etc. Such stocks will not be owned "in street name" but as certificates that I hold in my personal possession. It's getting hairy out there folks and it's gonna get hairier before things get any better. PYA!

PMs have virtually always been useful as money, as history well shows, even during some of the worst of times. The next time this happens is more likely to be similar to previous bad times than not.

I would agree that while the S is HTF, that will be the time to hunker down and not be trying to buy or sell anything. This is where being prepared for disaster will pay off big-time. A few months after the disaster occurs, people will begin trading stuff and regenerating an economy of some sort. This will be local at first and then slowly expand. THAT is when PMs will be valuable. Prior to that time, brass and lead are likely to be THE most valuable metals.

I love that quote Ed, I'm gonna steal it for my sig :)

Well most of it anyway, I googled it for the full quote by Norm Franz.