[Dateline: 13 March 2008]
You've probably heard the big news. Today, for the first time ever, the value of one ounce of gold squeaked past $1,000.
If you have ever seen a one-ounce gold coin you know it is not very big. A one-ounce American Gold Eagle bullion coin is roughly the size of a half dollar coin. Tonight they are selling on Ebay for around $1,200. A 1/10 ounce American Eagle is roughly the size of a dime, and they are selling for around $120.00.
What would compel people to spend so much for those little pieces of metal?
The answer is FEAR. The reality of the seriousness of inflation, and uncertainty about the future, is beginning to really register with the masses. They want to preserve their assets. Precious metals, gold and silver in particular, typically hold their value in an inflationary period.
Here's the interesting thing about today's high price... it really isn't the highest price per ounce that gold has ever been.
Back in the 1980's, the price of an ounce of gold got up to over $800. I read recently that if you figure in the rate of inflation since then, the price of gold today would have to be over $2,000 to equal that previous high.
Do you think it will get that high? I would be very surprised if it didn't.
Tonight on the radio I heard a BBC radio news report in which the reporter said something pretty close to this: "The American Federal Reserve says it will not rest until it finds an appropriate salve for the current monetary problems."
That's kind of funny. I don't think the Federal Reserve has an "appropriate salve" for what's we're experiencing.
Now that gold has broken the $1,000 barrier, some people believe that will trigger a mass flight to gold. Gold could become the next "bubble."
Well, maybe. I sure don't know. But I think even the most optimistic of American investor-lemmings are beginning to see the handwriting on the wall. Things are not going to be getting any better with the American economy any time soon. Should we all buy precious metals? Well, maybe. But I have a feeling that most Americans don't have the money to spend on such things.
If you are interested in purchasing gold or silver, contact Franklin Sanders at The Moneychanger. I believe he is someone you can trust completely.
But, more importantly, if I were to offer any advice for the uncertain days ahead it would be exactly what I wrote two months ago in this essay: An Agrarian-Style Economic Self Defense Plan.
Greetings from your friendly neighborhood terrorist - Here's my WND column for this weekend entitled Greetings From Your Friendly Neighborhood Terrorist.
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