Gold - Why You Should Own Some

Will inflation be the only way to bail out an economy consumed by debt?

In the 1930s debt deflation was allowed to take its disastrous course with public spending cuts and trade barriers making an already deteriorating cycle considerably worse.

However, anybody who has just bought into the stock market rally should really think about selling and staying out for a while. This is a time to park money in gold and silver and even exit cash, although you might care to note that cash and precious metals were the best performing asset class of the 70s, while in the 30s gold was the real star.

A new global currency is not the solution. Geithner and the politicians need to curtail the explosion in Washington spending, expanding the debt and destroying the dollar but the real solution is a gold backed currency free of government manipulation.

gold metal detector

HUGE Gold Price Drop

SABCnews.com - economy/indicators: "Gold price drops by biggest margin ever

Gold lost its glitter today as its shares fell by its biggest margin since July 2004
June 13, 2006, 18:30

Gold lost its glitter today as its shares fell by its biggest margin since July 2004. At one stage the gold index, which is home to three of the top five gold producers in the world, fell by nearly 11% as the gold price dropped to below $600 an ounce.

But South Africa was not alone as world markets also suffered major losses due to fears that higher inflation and interest rates will smother economic growth. The timing could not have been worse. Over the last two days, the JSE hosted an exhibition promoting mining companies on the stock exchange. But a stronger US dollar spoilt the party. It has made gold more expensive, which leads to a lack of demand and a lower price. "