The fact that that federal government is staring down a $14 trillion debt load right now, which, according to Financial Edge Daily (FED) an online investment journal, amounts to roughly $46,customized bobbleheads,000 for every American citizen, explains the mad rush to move out of stocks into precious metals, like gold.
�If you think that has something to do with the rush to invest in gold, you're absolutely right. Investors have been flocking to precious metals like gold because they're nervous,customize bobblehead,� says the FED. �Many see gold as a safe haven from the potential hazards of our ballooning debt, particularly inflation.�
That �ballooning debt,customized bobbleheads, experts and political pundits warn, could trigger severe inflation as the government continually churns out more currency to help cover what it owes,., and with all that currency floating around out there we run the risk of watching it quickly lose its value on international and domestic markets alike. And gold investors are either preparing to make their move or have already jumped.
�Severe inflation hasn't developed yet,� says the FED article. �But if it did, gold investors figure they'd be ready because the value of the yellow metal tends to rise with inflation. They also believe they'd be as prepared as possible for the worst case scenario: inflation that's so bad that the dollar becomes virtually worthless.�
Investment advisors often consider gold a best bet against the U.S. dollar because it is a considered a �fiat� currency that has no commodity backing. That�s why, when the value of gold is on the upswing, the value of the U.S. dollar typically tends to move downward. In addition,custom bobbleheads, gold also has a little-to-nonexistent relationship to the stock market, other than the fact that the two tend to move in opposite directions.
Should severe inflation actually surface in the U.S. many predict that gold and other precious metal would would translate into a valuable alternative currency, with gold and possibly even silver mirroring the role they have had in trade and finance since the time of Greeks and even earlier.
The U.S. government�s credit rating is also driving the interest in gold. Standard & Poors (S&P) recently downgraded its forecast for the U.S. government to �negative,personalized bobbleheads,On Top Of The Latest Trends In Canadian Growth Financing Working Capital & Purchase Order Finance,� which means S&P is considering reducing the government's credit rating from AAA,custom bobblehead, the highest possible,custom bobbleheads, for the first time in history. �Such a thing was once considered inconceivable because the U.S. has been considered the safest,personalized bobble heads, most reliable borrower in the world for so long,Are You Already Enjoying Some Del Mar Horse Betting,� says FED. Not any more.
Debt-related crises across Europe,custom bobblehead, particularly Greece, Portugal,personalized bobbleheads, Spain and Ireland, are also feeding directly into traditional investors anxiety levels,Fashion Jewellery Patek Philippe Replica Watches From Designwatchcopy,personalized bobble heads, as is the ongoing unrest in the Middle East and Africa and the protracted economic aftershocks linked to the Japanese earthquake and Tsunami. In the case of Japan, the shortage of automobiles from Honda, Toyota and other Japanese manufacturers has been crippling the U.S. auto market,personalized bobblehead, which has sent some investors back to the big three domestic automakers but at the same time made long-term investing in overseas auto companies a shaky move.
Given America's debt situation and the current economic climate, piling into gold is as popular as ever, however, experts do suggest that, for some investors the old rule on diversification still stands. Gold is strong and likely to get even stronger as we head into summer,,, where things like oil prices and auto sales and retail performance will dictate how stocks shape up for 4th quarter earnings reports come fall.
If we are looking at an atmosphere of high inflation going forward, gold will like gain value,customize bobblehead,Chicago White Sox In Greenville, South Carolina, although it�s already sitting at near-record highs.
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