Central Banks know that when the fiat currencies collapse, the last one left holding the “hot potato” is going to get burnt. They want to make sure that YOU are left holding the bag!
The Central banks are moving their dollars into gold, but they are keeping quiet about it in order to keep from stimulating the gold price. They want to get theirs while the price of gold is still low, before you wise up to it!
Russia has revealed that it wants to see 10% of its reserves in gold. China is buying at least 91 tonnes a year. South Africa has admitted that it is a gold buyer, and other central banks are buying as they are able to.
With Russia and China buying gold, the pressure on other banks to buy the yellow metal is growing as the dollar and other currencies weaken. —Julian Phillips
Gold has been moving up quietly this decade and your average person or investor is still essentially unaware of its strength, but that will likely soon change. —The Aden Sisters
In each episode of hyperinflation, governments went off a gold or silver standard. The United States went off the gold standard in 1971, and in less than ten years, inflation soared causing interest rates to peak at 21.5 percent. Gold prices went from $35 per ounce to $1000 per ounce as the dollar collapsed….In January 22, 2001 George Bush was inaugurated as President of the United States and the price of gold was $265 an ounce. The US then had a budgetary surplus. Today the price of gold broke $1000 an ounce which means the dollar has been devalued in terms of gold by almost 250 percent in less than eight years….While the unprecedented bailouts have piled on more debt, the need for more money to be printed is reminiscent of other hyperinflations. Hyperinflation tomorrow? No, hyperinflation now. —John Ing
[Paulson (former US Secretary of the Treasury)] believes that money printing by the government will ultimately lead to a good deal of inflation…I see quite a body of sharp investment minds coming to the conclusion that in a social democracy with a fiat currency, essentially all roads lead to inflation…In any case, Paulson is convinced that gold will be a very good way to protect himself from the eventuality of currency debasement (i.e., inflation). He observed that if one thinks about gold in a three- or five-year time horizon (instead of hour to hour, day to day or week to week), the probability increases of gold being higher over time — and, most likely, much higher. —Bill Fleckenstein
Read more at: The Bullion Buzz – September 29, 2009
Website: The New Survivalist