Sunday, 15 November 2009

Peter Schiff was right... now it's time to run

Granted, Peter Schiff - a Libertarian economic guru- was right about gold in 2006. But, when everybody in your local pub and their grandma is talking about buying something, it is time to sell like it happened with Internet stocks in 2000. Gold will continue rallying as long as the US Central Bank - the Federal Reserve- feels comfortable with a weak dollar to boost exports and generates just enough inflation to reduce the real value of the 12 trillion dollars national debt.

The problem is the dollar cannot keep going down for ever and ever, with the Chinese watching how their dollar holdings become worthless. Sooner or later, Ben Bernanke - Chairman of the Federal Reserve - will be forced to say the magic words: "we prefer a strong dollar". Then it will be too late for those who are going crazy buying gold.

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