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Gold is Moving

October 14, 2010

Are you watching gold and silver? In past issues of Forcing Change (www.forcingchange.org) gold and silver was recommended as a hedge against currency shifts.

If you jumped in when Forcing Change first talked about it, you would have acquired gold in the $900 range and silver around $17. Today gold is almost $1400 and silver is over $24 per ounce. Expect further movement in precious metals as the world’s economy is teetering, and investors look for solid ground.

Andrew Mickey, writing for Kitco.com, points out the following.

“Recession, depression, or recovery, gold is poised to continue its run.

The case for gold is a simple one. But as gold sets new all-time highs, a minority of investors are in it, more are waiting for a dip, and most will miss out on the bull run altogether. Well, until the top when everyone will be herding into it…

The main reason gold has the most upside potential of any asset class is simply because so few people own it or have any exposure to it.

Remember, bubbles are driven by the masses herding into a specific investment class. The tech bubble was created by a record number of Americans owned stocks. The housing bubble was driven by the percentage of households that owned a home reached its highest point in history. The current ‘bond bubble’ – where the U.S. government can borrow money for 10 years at 3% – has been driven by investors dumping stocks and buying bonds at a record rate.

The gold bubble will be no different. At this point however, owners of gold and gold stocks are still very much the minority.”

In past issues of Forcing Change we discuss the uses of precious metals as a hedge, and as a long-term store of value that can be handed down to successive generations. If you’re a Forcing Change reader, take the time to log in and review the back issues.

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