Gold: Down, but Not Out...
11/28/2011 12:01 am EST
But looking at the facts, it sure doesn't look that way. On the contrary, gold is likely headed much higher in the months and years ahead, and it's still a good buy. Why?
There are dozens of reasons why but some of the most important ones are:
- Demand remains extremely strong around the world. That's especially true in the emerging countries, like China and India.
- Central banks are also buying gold in a big way.
- As the US dollar continues to decline, the global reserve status of the dollar is being questioned. This, in turn, is driving the demand for more international gold reserves.
- In the 1970s, gold rose over 2000% and the situation is now far more serious. Aside from the US credit downgrade, deficits have been over $1 trillion for three years, unemployment remains high, and the situation is similar in Europe. The world is nervous, which adds to gold's desirability as a safe haven.
- The investing public has not yet joined in on this bull market. That's usually the case once a major bull market is underway, and gold is clearly in a major bull market.