Gold at US$1050/oz and dealers predict US$1500 – what can it mean?
It must mean some very wealthy people, cashed up corporations and governments, all well-informed, are extremely nervous about the world economy and the US dollar in particular. Historically, this kind of hedging in gold immediately precedes major dislocation like wars, economic catastrophe, national collapse. This flight to gold is more evidence that this GFC is not over and may be just starting whatever else may be about to break.
So, apart from buying gold, what can anyone do to prepare for whatever may come? Plenty! Get out of debt, stay out of debt, look for sustainable solutions for your next major decision. Thinking creatively what am I doing now? What goes into this communications device? My Blackberry and my cellphone too? Rare earth metals, molybdenum etc., a whole range of them and where is 90% of the worlds known supplies mined? China and they are using them not exporting them. No brainer really, invest in miners of rare earths in the rest of the world and you will make your fortune. These rare earths are rarer than gold, more valuable and more useful in our world of communicating devices. Gold runs like this always make me think….
