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Friday, June 11, 2010

Economic Recovery? Retail Sales Plunge

For those looking to gold for a safe haven and to make money, the release of the latest retail sales report confirms we continually say at Everything Gold, and that is we're not even close to being in a sustainable recovery, and all the massaged numbers the government wants to put out can't cover up the reality of the ongoing recession.

In May, retail sales plunged by 1.2 percent, confirming what I just said, as consumers remain extremely skittish and concerned about the weakness of the economy.

Another thing the government hasn't included in the retail picture is most people were simply spending their tax money, at temporary event, just like the ridiculous notion a bunch of jobs were created, when in fact they were a bunch of temporary census positions, which will end very soon.

It's one thing to listen and read this stuff, it's quite another to believe it.

For gold investors, we need to largely ignore the positive numbers thrown out by the government at this time, as they're largely irrelevant, and only used to show one tiny part of the picture.

All the props and gimmicks are coming to an end, and the real condition of the economy is starting to emerge.

One example of that is the huge decline in hardware and home improvement sales, which plummeted 9.3 percent after the homebuyer tax credit expired.

Keep those types of things in mind when making decisions about investing in general, and investing in gold specifically.

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