Gold is the winner in these uncertain economic times
Months ago, I was being interviewed on a radio show and they said that it looked like gold was in a bubble and they asked me what I thought. I told them that I felt it was NOT in a bubble and that it would only likely continue to flourish in such an uncertain economic environment.
I did say that in the near-term, gold had probably gotten ahead of itself as it had just hit $1,900 for the 1st time…but that it would simply correct lower and not crash lower like a bubble would do as it burst. Sure enough…gold is still holding up strong. Check out the chart below. Click on it to enlarge it.
Gold is still in a healthy uptrend and I believe it will remain that way. Why? The three most liquid assets in the world are gold, dollars and euros. Which of those would you prefer to own? Guess what…a lot of other smart people are thinking the same thing: gold!
Even central banks are starting to beef up their gold reserves once again…and they should be.
We know that the euro is crap and that the nuts and bolts are popping off of that machine daily.
We know that the dollar is benefiting right now…but that will only last as long as the worst of the economic turmoil does. So that bounce higher will be fleeting eventually.
Therefore, while you want to own other fundamentally superior currencies like the Aussie dollar, Canadian dollar, etc. once the worst is over…gold is still one to own NOW.