Thursday, April 21, 2011

Why SPDR (GLD) (AGQ) (UGL) (SLV) Will Remain Strong

Forget about the clueless mainstream media as it pertains to gold and silver and their relationship to the economy and political process, as there is absolutely nothing in the works which will be able to turn around the plunge toward insolvency of the United States, because there isn't the will to make the necessary changes to financially save the country, giving investments like iShares Silver Trust (SLV), SPDR Gold Shares (GLD), Proshares Ultra Silver (AGQ) and Proshares Ultra Gold (UGL) sustainability and viability for some time to come.

Cutting back on the size of the government and its entitlement programs and military expansionism is the only answer, but neither political party (outside a few individual exceptions) are willing to make the tough decisions, and so will continue to drive the country toward bankrupcty in order to keep themselves in political office.

Even socialist Europe understands they must cut spending and implement austeriy measures, while increasingly socialist America refuses to admit even that. Taxes can't be raised because it's impossible to keep up with the growing liabilities associated with out of control spending. In other words, the American people can't support the outrageous debt being forced upon them, and no amount of taxes can either, as only slashing the budget and the size of government can deal with the issue.

So as the Federal Reserve and Ben Bernanke continue to print money and destroy the collapsing U.S. dollar, gold and silver will enjoy unprecedented support as investors seek safe haven from the monstrous government eating away our spending power, capital and freedoms in order to spend its way to political favor at the cost of the nation.

This guarantees over the long term gold and silver will continue to hold and rise, as there's simply nothing to change that outlook, other possibly than a significant rise in interest rates, which the Federal Reserve, at this time, refuses to do.

1 comment:

Green Trivial said...

Ultra gold and silver ETFs are certainly interesting. I`ve wrote a piece on them not long ago.