When this financial event occurs it will be too late to buy. One has to prepare ahead of the storm. The sages ask who is wise? One who sees the future. It's easy to recognize what’s happening now. Being able to see the developing storms ahead and acting upon it before it hits is the challenge. The rebound in precious metals could be one of a series of gaps higher. Right now look for a rally to begin when the recent downtrend in gold since July is broken to the upside at $1205.
For the past 70 years, Americans have lived in economic luxury like we have never seen before in human history. This has been due to huge increases in debt and borrowing. The Roman emperor’s would be jealous of the average American and Monday Night Football. More Americans care about the top Quarterback ratings rather than the debt level. Only a small minority of Americans and Swiss are concerned about the dangerous debt levels in Europe, Japan and the United States.
Now the dollar is strong against other currencies. Some incorrectly believe this is true to the strength of the U.S. economy. The only reason the U.S. dollar is rising is because all the other currencies are weak. The Japanese and Europeans have been turning on the printing presses to maximum for the past few months. Don’t be surprised to see credit rating changes to these nations.
The United States may be on the verge of another economic crisis. In addition, there is a growing chasm between the races in the United States. Look at the violence and looting in Ferguson, Missouri. Watch the protests in Hong Kong as well.
We are in an environment which could destroy the banks. They are scared as they are still sitting on hundreds of millions of bad loans. Don’t be misdirected by the new age economists who say deficits and soaring debts are not such a big deal. Eventually, the piper must be paid and not with fiat money but with real money such as gold and silver that has maintained its value for thousands of years.