Six Reasons Why You Should Own Gold Now
Source: Mineralstox.com (8/14/07)
...These market fluctuations are just short term noise. Please look longer than 6 days down the road for your portfolio to gain maximum percentages as we forge ahead in the biggest resource boom we will possibly ever see in the history of mankind.
1. Fundamentals for gold and silver haven’t changed (hedge against the US dollar drop, increase in money supply etc.) in fact have only improved. Only investor sentiment has changed – it has obviously transformed from greed into fear – the perfect buying opportunity.
2. Corrections in bull markets are increasingly short, steep and painful making you believe it is a bear market (which we just witnessed). We saw the same market action in May 2006, and the market had a huge rally through the fall.
3. The USD recently broke a 16 year support level and crumbled – and is now having a dead cat bounce to test the “new” resistance level. It will fail, and when it does gold will rally (we are already beginning to see this). Gold is up over 200% against the US dollar in the last 6 years.
4. Sub Prime mortgage market fears in the US have now spread to Europe, and are causing panic among Central Banks - who are opening up the vaults to flood the system with liquidity – gold always does well during these periods of high liquidity.
5. This new liquidity will feed inflation...gold is truly the best hedge against inflation...
6. The never ending war for energy – China vs. the US vs. Russia - will create a new permanent geo-political tension that will sustain and increase the investment demand for gold as a safe haven.