Why you should be buying gold NOW...

The following was written by Walter Pehowich a industry veteran in the financial world and makes a strong case for why now is the time to be buying physical gold! Have a great read and a great Friday! Jon
 
 
Ronald Reagan once said, “No great nation that ever abandoned the gold standard has remained a great nation.”
 
Alan Greenspan wrote: “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value.”
 
I encourage you read again the “Market Gage” article from Monday, October 3rd. regarding the Chinese Yuan, where I wrote, “China has been accumulating their gold holdings for years and I don’t think anyone really knows how much they are holding. One has to think that the most powerful currency will be the one with the most gold holdings and the smallest debt.”
 
Currently, our Government continues to print money backed by the good will for the U.S. to meet its obligations. But, like every American who has credit card debt when do we and the government reach our credit limit?.
 
The U.S. debt is approaching 20 trillion dollars. Will congress continue to raise the debt ceiling or will someone in Washington
have the guts to stand up and tell the American people enough is enough? They know it will be political suicide as the only way to address this never ending increase in debt, is to address entitlements and raise taxes.
 
So how strong is the dollar and what will keep it as the premier world currency? I believe that real monetary reform will only come after the damage is done.
 
I do think there are many smart investors in the country who believe diversifying their portfolios to include gold and silver is a smart choice. This is proven by the incredible increase in gold and silver ETF holdings this year. Smart, but not brilliant. The brilliant investor will buy the physical product. Why? In the event of an economic meltdown I would rather have the hard asset in my hand then a piece of paper representing the product.
 
Going forward, is the dollar in jeopardy of collapsing? How long will the rest of the world continue to invest in our equity markets as they have in record numbers, as America continues to increase its debt and Congress continues to refuse to acknowledge the problems facing this nation?
 
Faith in money is critical to a successful economy. So, to reiterate my point if I may, if the U.S. government continues to spend money foolishly and not control its debt, when does the rest of the world lose confidence that we as a great nation can’t control our debt? The same thing that happens to a family who can’t pay their bills and reduce their credit card debt. They go bankrupt. Sure we can print more money backed by nothing, but without the good faith that the U.S. can meet its obligations, what’s left?
 
Have a wonderful Friday.