“Around the planet, governments are attempting to bail out the economies and it is not working,” stated McEwen. “We’ve had trillions of dollars pumped in to the U.S. and have noticed very anemic, weak recoveries in the economic climate.
“The gross national debt of the U.S. running from 2001 to present, and this really is just the government debt, and it's just about $16 trillion,” stated McEwen. “It’s doubled since 2008. Throughout Obama’s term, he’s produced more debt than any president prior to him.” McEwen pointed to current reports from the White House that U.S. debt will continue to develop, instead of shrink.
“The White House in February stated that debt in the U.S. in 2022 will probably be $26 trillion,” stated McEwen. “Now I’m fairly confident in politicians about the globe and their capability to underestimate exactly where they’re going to become, and it is not any different right here.” Rare Coins, Silver Coins, Gold Coins >> http://www.silver-
Although the U.S. has noticed their debt develop exponentially, McEwen says they’re not the only nation that has been attempting to get their economies going by such techniques. “The thing you have to help keep in your thoughts is the fact that it is not only the U.S. that is the culprit, it is each and every government about the globe that is employing exactly the same mechanism to attempt to kick start their economies and their debasing their currencies,”
“The way that I believe everybody ought to look at it is just how much the currencies have depreciated against gold,” stated McEwen. “If you look at our Canadian dollar in the previous 11 years it has lost 76% of its worth against gold. The U.S. dollar has lost 85% of its worth in the last 11 years against gold.”
The data also showed that the Euro has dropped 78%, the Chinese Renminbi 80% and also the British Pound 83% also throughout that 11-year period. As McEwen continues to determine these trends from governments across the planet, he stands by his gold price call of $5,000 an ounce gold. “To me gold will be the ultimate currency because it cannot be produced rapidly and this really is one of the factors why the price of gold is going up,” stated McEwen.
McEwen also discussed gold prices and they’re outperforming senior gold stocks (XAU), which has been confusing to investors seeing as how gold stocks had been seen as greater than gold however the trend has been reversed, instead of gold stocks following gold prices greater.
“You had lower gold prices and high stocks, you'd have expected stock prices to adhere to high gold prices, however they haven’t,” stated McEwen. “There really are a few factors and one I’d prefer to place out is really a study report place out by CIBC this year and it looked in the election years from 1984 to 2008, there had been seven of them.
“The XAU would decline in overall performance throughout the election year, and when I think about it, I believe it is rather intuitive,” McEwen stated. “The incumbent government is going to attempt to pull out all of the great news they have to get reelected, and there’s a lot of noise and confusion in the marketplace place due to the election. In the year following, reality sets in and promises produced can't be delivered right away.”
What it results in is the fact that the XAU features a historical bounce back period in the year immediately after the election. My suggestion is to buy gold and buy silver in the dips in prices that we have been experiencing lately. With all the economic chaos, gold and silver prices can only continue rising in 2013. How High Will Silver Go? Learn More >> http://silver-