**gold to collapse - silver, uranium to shine** I happen to agree with a number of members on Hotcopper here eg Goblin and co that gold is in for a serious dive. When you have the massive inventories that China, Japan and India have having tried to peg the deflating US dollar, there is the potential for a very big sell down. And we are not talking about a cupboard full of gold!! It is becoming increasingly more obvious with each new month that the US's trade deficit is continueing to blow out. Meaning that if any of these net exporting economies holding gold realise they can no longer afford to prop the Greenback by buying dollars and then buying gold, they will drop the gold and look for a better investment.
They will not want to sell their greenbacks otherwise they would kill their export dominated economies so they will/are looking for other investment opportunities. And these are viewed in terms of how can the dollars be spent where economic growth is also promoted. The answer is simple - invest in energy! China, India, Russia and Japan are eyeing oil/gas, uranium and silver investment opportunities.
Silver is essential for solar panels and of course we know what oil/gas and uranium can be used for. Uranium also doubles as an investment in national security!!
So don't be offended by those who are predicting a crash in gold, as they are only calling it as they see it. And maybe there are lessons to heed in the actions of China, India, Russia and Japan - ie focussing on energy in investing!!! Good luck to all!
Add to My Watchlist
What is My Watchlist?