Tuesday, February 9, 2010

Gold Loses Safe Haven?

We have talked much about gold....because the world is talking much about it.

The investors of America seem to be running around like sheep in a herd...with a sheep leading them.

First they ran into tech stocks believing they would make tons of money...when that collapsed they were told that stocks weren't stable so they should invest in real estate....when that collapsed they were told they should invest in gold since gold "has never been worth zero".

You can almost guarantee that people will lose their shirts in this "sure thing" as well....and it may be starting.

Here is the headline;
Gold Loses Safe-Haven Status For First Time in History

We like this headline for prophetic reasons since it says, "First time in history"....seems lots of things are happening for the first time in history.

Read it here; http://www.cnbc.com/id/35255208

Also notice this paragraph from article;

So is there nowhere to hide? Municipal bonds, traditional tax and turmoil havens, may be risky here because of the threat of downgrades by rating firms based on the coming tax shortfalls across the nation from Los Angeles to Harrisburg, Penn.
Rating downgrades could trigger forced selling by institutional holders in these bonds, seriously weighing on the prices of these bonds and hurting your returns.
Bonds backed by the full faith and credit of the United States government seem to be doing ok,...


There is that prophetic phrase again...."full faith of U.S. Government". What happens if that faith vanishes?

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