Thursday, November 4, 2010

Lookin' Out For Ya

As I predicted months ago, the Fed announced that it intends to print ANOTHER $600 billion to monetize the debt. Monetizing the debt reduces the value of our money. Also as predicted months ago, the price of gold has skyrocketed. Within 30 minutes of the Fed's announcement, the price of gold jumped another $40 an ounce. Now approaching $1400 per troy ounce.

The good news for America, and the bad news for those who hold onto gold too long, I suspect the new Republican congress will shoot down this atrocity early next year and cut spending. If they do (and they should), the price of gold will drop immediately. If they do not, you can hang onto your gold awhile longer.

Me? I'll sell my gold after the first of the year and take my (huge) profits. If Congress does not do the right thing, I can always buy it back. And if they DO manage to do the right thing, and the price drops, I can buy back at a bargain price. In either case, I will have already pocketed a buncha bucks.

Just so you know...


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