Five Reasons Gold Is Set to Soar Higher

Five Reasons Gold Is Set to Soar Higher

Gold Reason No. 1: Don’t Ignore Inflation: The stock market panic of 2008 sent commodity and stock prices – which includes the price of oil – much lower. That launched a huge debate whether deflation or inflation would be the final result. Remember, since 2001 – under estimated price inflation of 2.5% – gold managed to rise 400%. The Federal Reserve is expected to keep short-term rates near zero through 2013 & 2014 leaving the door ajar to ignite more inflation. To shorten the recession, quantitative easing (massive printing of dollars) exploded the monetary base. As of October 2008, in only four months, the central bank doubled the U.S. money supply, going way beyond anything done in the nation’s history. On a worldwide basis, central banks have printed up an unbelievable $12 trillion worth of stimulus money, which is Robbing us-the citizens, by greatly decreasing the purchasing power of the dollars already in existence-the dollars in our paychecks and bank accounts. Most economists agree that [inflation] will win out over deflation eventually.

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