Why Is Gold Soaring?

Posted: January 27, 2012 in Financial Survival, Gold, Precious Metals, Uncategorized, World Events

There are two specific developments pushing gold higher.

1. Iran is now in discussion with India to accept gold for oil and rumors are swirling that China may follow.

2. The Federal Reserve has announced they will keep not raise the Fed Fund Rate incredibly low until at least 2014

Let’s break down these developments.  The Iran issue proves that gold is money.  With the world going back to recognizing gold as money it will cause countries and eventually corporations to stock up on their gold holdings.  This development will likely guarantee we are going to war with Iran.  If you look at the track record of the United States, this hi jacked country gets very aggressive with countries who use any form of currency other than US dollars. 

Gadaffi for example was in the process of pushing one currency for Africa, specifically the gold dinar which would have all but destroyed the US dollar, over a relatively short period of time.  That was likely the main reason for taking out Gadaffi, keep in mind the first thing that was created after taking out Gadaffi was a Central Bank.

Now let’s look at the Federal Reserve.  What can you say about this corrupt for profit institution.  Obviously their only concern are their banking share holders.  The action on the Federal Reserve shows they will continue to wage war on savers until at least 2014.  This means more people will be forced out of dollars due to inflation and into riskier assets.  This is a game changer and likely the catalyst that will start the second leg of the gold and silver bull market, remember the first leg lasted about 11 years. 

Although gold and silver will still be volatile, the actions of the Federal Reserve is causing  the very thing they are trying to avoid.  The Federal Reserve is creating a new global gold standard by their irresponsible actions.  Holders of US dollars will pay greatly. Dollar holders get ready to assume your position.

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