The price
of gold per ounce is exploding! Gold has gone up forty-six dollars in the last
couple of days alone. Gold is now up eleven percent year-to-date. Gold has also
broken above the critical $900 level.
I'm going
to explain the reasoning behind the recent explosive move in gold. I'm also
going to explain why I feel that the price of gold per ounce is going to rise
even higher in the coming weeks and months.
Let's go
back to a couple of weeks ago -
Federal
Reserve Chairman Ben Bernanke, along with several other Fed governors began
talking tough about inflation.
The
financial markets wrongly got the impression that the Fed would begin to raise
interest rates, possibly as soon as August. The dollar began to rise in
response and gold sold off.
However, it
soon became clear, after the most recent Federal Reserve Open Market Committee
meeting that all the talk about the importance of a strong dollar and the
concern about rising inflation was just that - TALK! In actuality, the Fed is
more concerned about the state of the economy than they are about saving the
dollar.
As soon as
it became clear that the Fed wasn't likely to raise interest rates any time
soon, gold began exploding to the upside!
If you
think last week's action in the gold market was exciting, just wait. Over the
long-term, the price of gold per ounce is going to move even HIGHER.
You see,
the Fed is in a bit of a predicament -
If they
raise interest rates, the weakened financial system could collapse. If they
don't raise rates, the dollar will continue to weaken.
Sadly, the
Fed's inability to raise rates will cause everyone to lose. The dollar will
continue to fall and the economy will suffer because of higher inflation.
The best way to protect your hard-earned money from the
falling dollar and the ravages of high inflation is with pure silver
and gold bullion coins. You can find a huge selection of discount gold bullion
coins at: http://bullionbargains.com
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