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Michael Pento - Why Investors Should Buy Gold Now
With the stock market plunging on Friday, gold ending the week at $1,625 and silver at $30, Michael Pento, of Pento Portfolio Strategies, explains for King World News readers globally the underlying reason stocks were plunging and why investors should be buying gold, “There are still many investors in full denial about the sad state of the U.S. economy (Mr. Buffet, are you reading this?) If you don’t believe that America, and indeed most of the global economy, will be in a National Bureau of Economic Research recession in 2012, then take a look at the price of copper. Copper is now in an official bear market, as its dollar price has crashed from nearly $4.50 per pound in August to $3.14 a pound this past Friday.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
October 1, 2011
Michael Pento continues:
“In fact, every base metal price has experienced a sharp contraction in the past two months. Not only base metals but energy prices and equity shares have pulled back significantly of late too. The message from the markets is clear; the global economy is slowing sharply.
However, this does not mean that gold must necessarily fall in sympathy. Looking back to the credit crisis, all metals prices fell in the fall of 2008, including gold. That’s because Bernanke did not lower interest rates or increase his balance sheet from April 30th thru October 8th. But once the Fed stepped into action in the fall of that year, gold rallied significantly....
Continue reading the Michael Pento interview below...
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“Likewise, an economic slowdown won’t hurt gold prices this time around either, as long as Bernanke does not sit on his hands for 6 months. With Europe teetering on default, investors can be assured that the European Central Bank and the U.S. Fed will not allow another half year of deflation and money supply contraction to send the global financial system into ruins. Once an economy becomes fully addicted to inflation it is very hard to kick the habit.
Investors must understand that global central banks will do everything in their power to avoid reality and try to keep the credit bubble from bursting on both sides of the Atlantic. That’s why taking advantage of this recent pull back in gold may be the smartest move.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
