Gold Is a Great Aftershock Investment Because It Takes Advantage of a Falling Dollar, a Falling Stock Market, and a Falling World Economy
Let’s get something clear right up front: We are not gold bugs. Like most smart, reasonable people, we don’t jump on bandwagons based on wishful thinking or a habit of seeing only doom and gloom. Traditionally, the warning to “Buy gold!” has been the longtime mantra of the chronically pessimistic. More recently, however, an entirely new, much more optimistic crowd is starting to buy gold, too. And for very good reasons.
As other asset values decline, people will want to put their money somewhere. They will want to buy something, preferably something of rapidly rising value that has a long tradition of acceptance and demand during difficult times. That is gold. As demand continues to rise for gold, and then rapidly rises when the other bubbles pop, the price of gold will shoot up. The rising gold bubble is your very best bet for profits during the Bubblequake and Aftershock.
Gold is not inflation or interest rate dependent, unlike stocks, bonds, and real estate, so gold is one of the few remaining assets that will not be brought down by rising inflation and interest rates. Quite the contrary, investors worldwide will pile into gold as a flight to safety, when those other assets fall. In time, this will create a gold bubble, as more and more money rushes into gold, and gold prices explode.
Will the rising gold bubble eventually fall? Of course ...