Several blogs back, I shared a bit of advice from a Cornell economist on gold as a commodity. While he (and I) gave ourselves a little “wiggle room”, I wouldn’t want anyone to be misled.
Gold, silver and a few other precious metals aren't just commodities. They are true residual currencies. And they are seen as counter-balancers of the global trading value of whatever printed currency is the king of printed currencies.
The U.S. dollar still is today’s currency king – although its reign is being challenged. Gold's market value is the antithesis or opposite of the U.S. dollar's value. It's a very strong correlation: As the dollar weakens, gold’s value has strengthened.
So it comes down to this: If you feel like Uncle Sam (Congress and the President) will succeed in bringing down the federal deficit, buying gold wouldn't be wise. If you feel they’ll continue the “same old same old”, then you, too, should look at protecting your assets via something that has more global value.
America's farmers are uniquely blessed. Highly productive farmland is as much of a world reserve as gold. And if you’re fortunate, you may be standing on it right now.
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