-- Posted Friday, 18 September 2009 | Digg This Article
| | Source: GoldSeek.com
Winston’s Growth Stock Report Since 1995
Many gold gurus including myself have been forecasting $1,000 gold for years. Though U.S. driven debt and deficits have always been the key drivers behind my viewpoint, I can tell you no one foresaw just how big a financial hole the governments around the world would dig for themselves. Given the collapse of numerous financial institutions, various bailouts of the once great and mighty blue chip corporations like General Motors, and the trillions of debt needed to kick start the world economy, gold at $1,000 will be looked at as “cheap” in the years ahead.
Though gold may dip below $1,000 in the months ahead, the trend is up and it has been up since we jumped back in to gold equities back in the spring of 2001.
Right now gold is experiencing an added push thanks to seasonal buying by jewelers ahead of the holiday purchasers. But the real driver as I stated is debt. In the U.S. alone the public debt now stands at $11.8 trillion and is climbing on average by $3.9 billion per day!
Last month the Washington Post reported that Congress will be forced to raise the legal limit of debt which currently has a ceiling of $12.1 trillion. This cap has been moved several times over the years and has become a rather meaningless “law.” With President Obama’s trillion-dollar overhaul of the nation’s health care system the cap will need to be bumped big time.
The Congressional Budget Office has predicted that Obama’s first budget will require $9 trillion in borrowing over the next decade.
So if you see gold dip below $1,000 again, don’t sweat it. It won’t stay below $1,000 for long. The pile up of new debt is far from over.
Bill Ridley
Publisher
Winston’s Growth Stock Report
-- Posted Friday, 18 September 2009 | Digg This Article | Source: GoldSeek.com
