The news wire is cherry red with media chatter of default and credit downgrade. I understand the thought of yet another crisis captivating America but for those willing to look deeper this is a long shot at best. This is less about default and more about entitlement, reelection, and fiscal mismanagement. There is one thing separating us from other debt ridden countries and today we look at what it is and how it affects your stash of gold and silver.
Washington is beginning to look like a Chris Angel trick show gone bad. We don’t call it printing money because technically it is not printed. But something happened recently, without much fanfare I might add, with America taking over as the number one holder of our own debt. Most folks believe this honor goes to China but in fact we now own more of our own debt than anyone else. How long do you think a natural economy can sustain itself working both sides of free economics?
Soon the debt ceiling will be old news and new money will flow created from nothing and backed by less. As we pointed out yesterday most don’t understand the ill effects of debased dollars and more don’t care as long as their world moves along. But the media needs a crisis and many float around these days but I can’t help but wonder when gold bubble talk will heighten? The media are predictable but not even waves of gold bubble talk can squelch the future of your gold or silver. It’s worth repeating that gold will continue its course as long as fiscal mismanagement continues its destructive course.
At post time one ounce physical gold will cost a buyer over $1700 but with so much debt ceiling talk few pay attention. The real story is what $1700 gold is trying to tell us. Expect more of the same regardless of debt ceiling compromise. Thanks for reading The Prospector Site.
SACRAMENTO CITY NEWS: Improving Mexican economy draws undocumented immigrants home from California
“It’s now easier to buy homes on credit, find a job and access higher education in Mexico,” Sacramento’s Mexican consul general, Carlos González Gutiérrez, said Wednesday. “We have become a middle-class country.”
“They’re going back home because they can’t get medical help or government assistance anymore,” Frausto said, “And when it’s getting so difficult for them to find a job without proper documentation, it’s pushing them away.” Read it here.
THE STREET: Gold Prices Surge on Sour GDP Data
Jeff Clark, Casey’s senior precious metals analyst, said that gold could see a 5% correction if a debt plan is reached in Washington, which would bring prices down to $1,525 an ounce.
“The gold price could easily correct once a debt deal is reached,” said Clark. “Many analysts are attributing the current run-up [in the gold price] to the debt ceiling talk impasse,” so if a deal is reached, then a lot of the impetus for higher prices will disappear. Read it here.
PROSPECTOR: Mr. Clark, along with other precious metal experts, feel any pull back will be temporary and the long term diagnosis for gold is bullish.
Philly Burbs: Gold coins, worth $25,000, stolen from car
A New Britain Township resident reported that someone broke into his secured car between July 17 and 19 and stole about 14 gold U.S. coins valued between $25,000 and $30,000, said police. Police said the coins were $20 and $30 denominations. Authorities believe the person responsible for the theft knew the coins were in the car.
PROSPECTOR: Not sure how safe a car is for storing coins but as values rise so will the temptation to steal.