February 11, 2010 – As the economic problems in the United States linger and concerns mount over a possible swing from recession to inflation, gold investment continues to be seen by many as a possible hedge against the difficulties that could be looming ahead. With investment experts beginning to openly question the sovereign debt issues of the US government, many believe the growing problem could lead to greater reliance on gold.
"I'm convinced the US government will go bankrupt, but not tomorrow, and before they do they will print money [and] you'll get a depression with very high inflation rates," said money manager and investment author Dr. Marc Faber at Russia's Troika Dialog Forum in Moscow. This sentiment is not unfounded as the national debt has reached $12.4 trillion dollars with additional deficit spending of more than $1 trillion proposed by President Obama for the next fiscal budget.
This rampant accumulation of debt led Dr. Farber to comment, “When I look at (President) Mr. Obama, (Federal Reserve Chairman) Mr. Bernanke, (Treasury Secretary) Mr. Tim Geithner and Mr. Larry Summers (Director of the National Economic Council), the one thing I will never do in my life is sell my gold." The uncontrolled spending and economic policies are leaving other people feeling the same way, seeing gold investment as their best hope for avoiding economic disaster.
Gold currently has a nine-year run of year to year increases, increasing in value nearly 25% last year alone, and someone who invested in gold in 2000 now holds an asset that is worth almost four times what they paid for it back then. Concerns about the US economy and the stability of the US dollar continue to affect gold investment today as many analysts see prices rising to as much as $1,500 per ounce, based in part on the economic conditions of the United States.
Concerns about the US national debt are helping to drive gold investment. As people get a clear view of the direction of the economy, they should consider investing in gold to help protect their financial interests.
Senior Staff Writer - Gold-Investment.info