Silver and Gold: Come An' Git It

Well, as usual, there is the good news and the bad news in the economy. First, the good news is that our economy has gained about one hundred thousand new jobs added to the payroll. The bad news is that most of these new jobs are in the service sector, such as waiting tables and working in fast food restaurants. The other bad news is that no new jobs have been gained in the manufacturing sector. Manufacturing is the backbone of our economy as it reveals just how much we are exporting, instead of importing from places like China.

Ah, but there is still the good news. At the end of the year, non-dollar denominated assets, gold and silver rose, twenty and fourty-five percent respectively. But, the bad news is there were some large swings and drops in value towards the end of the year. So there you have it. Good news and bad news. But you want an explanation now don't you? What is really going on in the economy? The truth is, we, the people of United States of America, are in for a very bumpy ride, and silver and gold assets are most people's only hope.

How do I know this? First you have to look at the dollar index which is hovering very closely to a historic low of eighty (around 83). The dollar was this weak only one other time in history, and it rebounded. However, the future does not look so rosy this time. The combined forces of a massive trade deficit, war spending and uncontrolled government spending has lead our great nation into a very dangerous zone, the eight trillion dollar debt zone. We used to be the world's greatest creditor, now we are the greatest debtor.

We have been living high on the credit hog and now it is time to pay. If you bother to listen to radio or watch TV anymore, you will see an array of commercials regarding credit restoration and, gasp, home forclosures. This is no temporary recession my friends. People are no longer able to their mortgages. They were lured into homes they couldn't afford during the mortaging boom. The bubble has burst, and there is no turning back. But let's get back to the dollar.

Remember the good old Federal Reserve meeting with China and Reserve Chairman Bernanke? This was no discussion of sports. Rather it was a plea by the Feds to keep the Chinese from strengthening their dollar and moving out of US dollar based assets. Any government can dump any of its assets at the drop of a hat change the economy overnight. It has been reported that a temporary agreement was made to let the dollar slide gradually. Otherwise, you might have seen your neighbor begging for change at 7-11 sooner, rather than later.

That the dollar was is in demise is a given, how quickly it will happen is a matter of time. There are a lot of insiders who say that there will be some serious adjustments in the dollar as soon as next year, as we will be seeing new, historic lows, getting even lower. But this should be evident to anyone who has read the writing on the wall and their savings accounts diminishing.

We, the people, simply cannot continue living under this kind of debt. Remember, this not something that the government pays. This is our debt. So far, each man woman and child in America owes about 20,000 dollars in national debt. That's right. This is something that we must all pay for in the form of inflation and taxes. So what must we do? Easy. Silver and gold. Either one. Take your pick. Choose one, choose the other, choose both. It really doesn't matter, there are arguments for one being more profitable than the other.

But in the end, gold and silver are real hard currency. They are the only two metals that have been used as money throughout history. And now they are just beginning to make a comeback. Savvy investors with forsight are catching the bug and the metals are taking off. But we are still at the beginning of a very large movement in this direction, so things look affordable at the moment. Just remember that things will change this new year 2007. Will you?