Retail spending may be up in the US, however the average credit card debt is over $8,300 with most Americans owning 4 credit cards. The average interest rate on these is over 20%. No wonder our great banking friends are encouraging people to spend. They are coining profits from peoples desire to spend. This must at some stage come to a sticky end. Unlike central government individuals can't print money. If you add this debt, to the likes of student debt and car loans and mortgage finance I don't think this paints a pretty picture. So to my simple way of thinking having an exposure to gold in these uncertain times seems to make sense. That doesn't label me a goldbug, i don't buy in that gold will reach $10,000, but owning a metal that doesn't pay a dividend and has no p/e could be a good insurance for when the wheels start to wobble. Warren Buffet doesn't do gold but is sitting on a large amount of cash, which is costing him big time. I think he may be like the vulture waiting to pick on the dead carcasses when the correction comes.
