-- Posted Monday, 4 May 2009 | | Source: GoldSeek.com

Precious metals are the obvious safe harbor for the ongoing financial storm.  However, precious metals, passed around in coin form, are not the long term future of money unless we are going back hundreds of years.  What I do expect is a super spike in precious metal prices relative to everything else as panic sets in following the "official" end of the US dollar's world reserve currency status.

Real financial reform requires a revaluation of debt and Mother Market will make it so, despite the best efforts of the US government and Federal Reserve.

The government has been fighting this process because so much of the "wealth" of the political insiders who dictate how our government and financial system are run, is in the form of debt.  This is debt that we all owe to the financial establishment.  But we are not able to pay any longer, so the smart insiders are already buying gold and silver. 

The real financial panic has not set in yet.  You'll know that it is here when the price of gold and silver literally explodes vs. everything else. 

The explosion will be the first clear sign that a re-balancing of the financial system is occurring.  The explosion will give those who own precious metals a window of opportunity to exit (most of) their long held positions and buy real property at absolute bargain basement prices.  This will be a time when almost everyone is driven by fear and greed to the precious metals.  This will be a time of massive de-leveraging when it seems that the entire economy collapses into the arms of gold and silver, when all past monetary promises are called into question and found lacking.

This time of panic can not and will not last long.  It will be followed by a gradual re-leveraging, with gold once again serving its proper role as the base monetary asset and silver serving its proper role as a monetary asset that circulates along-side virtual and debt based money.

In the best of all possible worlds, you may even be able to open a private bank of your own using what you have left of your gold as the reserve and what you have left of your silver as part of the circulating medium... but don't count on that.  You should acquire real assets, productive assets during the panic.

Vincent Bressler
vincent.bressler@gmail.com
-- Posted Monday, 4 May 2009 | Digg This Article | Source: GoldSeek.com

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