A few have asked are we worried about the recent drop in Gold ?
We are not worried at all – this is a normal pull back with the FED trying to tell us all is ok and they will not do more Quantitative easing (QE) – they are not telling the truth, they will be forced to do more QE. As the world economy slows (Japan has a trade deficit, first in 30 years and China has stall speed growth 5%) the question comes who will buy US Treasuries? As both China and Japan will not have the same surpluses therefore the FED will have to buy them – and this is QE ! Also, Europe is not done either, this is just act 2 . . there are several more acts to follow Portugal, Spain . . . . Ireland revisited and of course Greece for an encore!
This is far from over. Take advantage of this fire sale on precious metals, Buy gold.
