Buy Gold!

Have we all noticed that you can't turn on your radio or TV without some pitchman screaming at us to buy gold?

Have we seen the commercials that invite you to drop your gold in a postage paid envelope and send it to some place in Atlanta where they promise to give you cash for your "old gold"? Honestly, there must be a sucker born every minute to buy into this one.

We have posted previously about the 1933 Gold Confiscation Act where FDR demanded that all U.S. citizens turn in their gold to Fort Knox under penalty of fines and/or prison.

So what's going on?

I smell a bubble. And who will be left holding the bag?? The small investor....who is always the last one to get in and undoubtedly will lose the most.

As a result, gold now has “some of the poorest fundamentals I've seen in the market for a long time," Kitco analyst Jon Nadler told the magazine. Kitco is a bullion dealer in Montreal.

Increasingly, that leaves small investors alone to pump up prices, a bad sign if you’re the last to get in on the run upwards.

Let's remember that what drives people into gold is the fear of a paper-money collapse.

So why buy gold at all? Plenty of famous names, among them Warren Buffett, maintain that gold is essentially an insurance policy, a hedge against not inflation but an utter collapse of money itself.

The Omaha billionaire has warned repeatedly that Fed policy guarantees a long-term decline for the dollar. But inflation, while inevitable, can be controlled by a swift change in Fed interest rate policy.

Did you see that? "...a hedge against not inflation but an utter collapse of money itself", says Warren.

And notice that the author says that inflation can be controlled by a swift change in Fed interest rate policy. THAT MAKES A MAJOR ASSUMPTION THAT GLOBAL INVESTORS WILL HAVE ANY INTEREST IN BUYING AND OWNING U.S. DOLLARS!

Read article here; http://www.moneynews.com/streettalk/gold_price_bubble/2009/10/20/274308.html?s=al&promo_code=8D6F-1

There is no doubt that the inhabitants of planet earth will be running to and fro trying desperately to figure out what to do with their wealth.

But Jesus tells us to focus on eternal things....because all we see is passing away.