View Full Version : Gold Market Flashing Debt Crisis Warning

12th April 2010, 06:05
For your professional review...


12th April 2010, 09:35
A good read. Thanks!

12th April 2010, 11:15
While I don't disagree with the article, my suggestion is that the trend to gold and silver is not so much a loss of confidence in governments but in banks and financial institutions. Autoworkers and government employees (ex. California and Ontario) have found out the hard way that their pensions aren't as gold-plated (pardon the pun) and secure as they thought they were. When the general public loses faith in the papermongers selling stocks or investment plans, the obvious alternative is bullion, which at least can never go bankrupt.

The distrust of Wall Street and Bay Street can be seen in two sets of data which don't get as much attention as they deserve. Firstly, the retail investor has abandoned stocks. 70% of the volume in the brokerages is computer trading and most of the rest is institutional. Stock mutual funds have had massive withdrawals. Secondly, the U.S. Mint and the Royal Canadian Mint are working extra shifts to try and keep up with the demand for silver coins. Gold coins are also setting records, but silver is a better barometer of the average public, who can afford it more easily than gold. The silent majority is quietly buying up American Eagles and Maple Leafs for fear that their remaining paper will be rendered worthless or confiscated by the government as higher taxes. These buyers are people who don't post to blogs such as this one, and don't tell their friends for fear of robbery, but just quietly go to the coin dealer and buy a few bullion coins over the counter for peace of mind. They may only keep a few ounces for emergencies but collectively they are driving up the sales for the mints.