Gold is popping through a key threshold this morning as it smashed through $1,300 an ounce! Once again, the Federal Reserve dared not raise interest rates in the face of a retreating U.S. economy and lousy job growth.
We watched Fed Chairman Janet Yellen's press conference Wednesday as she tried to say the economy is doing OK while she explained why they were not raising interest rates this week. She's not as good as Greenspan with the doublespeak. Face it, the economy stinks!
Near-Zero Interest Rates Forever
We've wondered for some time now, "Are we stuck forever with near-zero to negative interest rates barely propping up stock markets?" It looks like it. This policy has killed conservative savers and the historical norms of getting 5% - 6% interest paid to us on a Bank CD seem lost forever. The days of doubling our money in the bank every 10 years with zero risk is a bygone era.
The banks don't need our money if the Fed can print it up by the Trillions and give it to the banks for nothing. In this climate, gold may be the only safe option long-term. Bonds are useless and the Stock Market is carrying all the risks it did just before the 2008 crash.
Eventually, the world's economic structure will have to morph into something other than the current Central Banks' idea of a free market. The debt implosion in Cyprus, Greece, Puerto Rico and Venezuela are just the latest in a long list of economic disasters. There's much more to come.
Watch the British Election for $1,350 Gold Spike
As the Brits are set to overthrow the European Union's fierce stranglehold on Britain's economy, watch closely.
A Bloomberg survey predicts bullion will rally even further if Great Britain chooses to exit the EU. Forecasts are for $1,350 within a week of the vote. On the other side, gold could slide to $1,250 should a majority choose to remain in the bloc. In our opinion, there's little chance of the British staying in the failed EU.
As a result of the coming election, this may be your last chance to jump on the gold bandwagon at $1,300 gold. It's a great entry point today with what we feel is only slight downside risk. Do nothing and you might miss the boat completely.
As the world comes unglued, the gold bull marches on!
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