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The Key to Your Investment Survival Next YearBy
Wednesday, November 5, 2008
Back in 2001, I took care of trillions of dollars in government bonds for Citigroup. At the time, "Citi" was the world's largest bank. On the other hand, I'm avoiding companies like Tiffany's and Whole Foods. And I'm not interested in money shufflers like banks and brokers or property companies. They all rely on people making large investments.
Further Reading:
This Little-Known Business Is Still Throwing Off Huge Dividends Market NotesGOLD AT $750? IT'S A BARGAIN!
For much of the past few months, the major question on the mind of the American gold investor has been, "Why isn't gold going higher?"
Gold tends to rise when financial institutions are collapsing... when governments create blizzards of paper money to "fix" problems like mortgage meltdowns and wars. In other words, gold is one of the world's best crisis hedges. But calling the collapse of giant financial institutions like Wachovia, Fannie Mae, Freddie Mac, and Lehman Brothers a "crisis" is putting it lightly. It's utter catastrophe for hundreds of thousands of people. That's why gold's 18% decline in October was shocking to most American investors. Our advice? Think globally. Sure... gold has decreased in value when measured in U.S. dollars. Folks have flocked to the dollar because they need cash to cover debts... which has pushed up the dollar's value. But when measured in euros, Aussie dollars, or Canadian dollars, gold is still near all-time highs. This "paper currencies down, gold up" trend began six years ago. And with the enormous liabilities the U.S. government is assuming, gold is going to resume its uptrend against the dollar... as well as all other currencies. At $750 an ounce, it's a bargain. |
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