InvestBaboo

Gold in a Credit Crisis

To say that people will lose faith in foreign currency and rush to the useless currency of a massively debtor nation (U.S.A) sounds highly off the cuff to me. What the dollar has had is a short term rally while people are trying to get their bearings. When they see that the dollar is backed by a debtor nation whose productivity has been abysmal over the past several years and whose inflation numbers have been massivley doctored to fool its citizens and the rest of the world -- the flight from dollar will begin. Where will people run to then? Gold!!! The reason why you can't look to the past to forecast the future is we have never had a situation where people even contemplated running away from the dollar. When that happens it will change the rules of the game.

Gold at $5000 an ounce will be a bargain a few years from now.