Gold comment

Posted on 15th March 2012 by Trevor Reynolds in Blog

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.

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