The news media seems to be on a mission these days to devalue gold and other commodities. Unemployment increases have been made to look like decreases, runaway deficits have been painted like charitable giving and bad fiscal policy paraded as kick-starting the economy; no matter what is going wrong, some news agency is trying to make it look right. Gold prices have fallen, but in spite for the drops, now is still a good time to buy gold.
Gold is commonly billed as the investment of choice during difficult economic times, and that has been true many times over the past forty years. In spite of the advertised strength of the US dollar at the moment, the US economy is in one of those dark times; it may very well be the darkest since the Great Depression. Unemployment is creeping higher, the housing market has not recovered and once rock-solid businesses are still going under, but all of this is being overshadowed by the crises in Greece, Portugal and Spain. Turmoil in these countries is propping up the dollar and allowing investors to forget the problems at home.
Good news has boosted the dollar, but soon the reports from overseas will die down and reality will set in for the US. The economy is still in terrible shape and the billions of dollars of federal handouts have weakened the country’s money supply and raised its debt.
In spite of, or perhaps because of its price decrease, now is the time to buy gold bullion or certified coins. The best attributes of gold investment fit perfectly with the list of problems facing the US, and some analysts are still forecasting prices close to $1,500 per ounce in 2010 and $2,500 in 2011. With current prices down around $1,060 today, this would be an incredible boon for investors who buy before any price increases can take hold or the media tries to spin them away.
John Halloran
Senior Gold Specialist - Buy-Gold.org
