Only A Matter Of Time Till The Whole Mess Comes Crashing Down [SPDR Gold Trust (ETF)]

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June 30, 2014 3:19pm NYSE:AGQ NYSE:GLD

Economy recessionNo matter what Washington wants us to believe, a glimpse of the headlines is all it takes to realize that our current economic practices cannot continue. The ranks of people who receive assistance from the government now far outswell the ranks of the actual taxpayers who pay for the system.


Interest rates, that once encouraged saving, are now held hostage by the actions of the Federal Reserve, causing even more economic stress. As the load increases, and the government continues to cut check after worthless check to pay for its bloated programs, common sense says that it can only be a matter of time till the whole mess comes crashing down.

Media Hype Continues To Bolster Economic Missteps And Shun Gold

Those who look no deeper than the mainstream media may actually believe that our economy is improving. The talking heads proudly show off increases in the stock market as proof each day, but their assertations of economic growth have little to back them up.

The media charade plays daily, touting paper stocks and shunning the real value of gold. As the Fed continues to influence the economy by artificially suppressing interest rates and pumping increasingly worthless dollars into the system, the media facade may be starting to slip.

Gold Bugs? Equity Cockroaches?

On June 17th, 2014, Marc Faber, editor/publisher of Gloom, Boom & Doom Report, caused CNBC anchor Jackie DeAngelis some discomfort when he pointed out that gold was being unfairly lambasted by the mainstream media. In the phone interview Faber asked pointedly why it is that investors who favor gold are called bugs, yet investors who favor stocks are not known by a similarly negative term, such as cockroaches.

Faber, who stated that he is now actively adding gold above his normal investment level of twenty-five percent, explained that gold, as well as gold stocks, are a better buy than the artificially high stocks. He went on to discuss the future problems he foresees for the economy and encouraged investors to choose gold, much to the discomfiture of his host who wanted to direct any blame away from the media, and CNBC, in particular.

China: In The News Again

On June 27th, 2014, ZeroHedge reported that China’s chief auditor had announced that as much as $80 billion dollars of Chinese loans backed with gold may have been falsified. With China holding the honor of being the world’s biggest gold customer, it’s a safe bet that investors will be watching to see how this impacts gold.

Coming on the heels of reports of possible fraud at Qingdao, these new reports are further evidence of problems with China’s shadow banking system. While this news is not expected to decrease demand for gold in that country, and could even stimulate a rise in gold prices as it plays out, it still adds to the overall picture of global economic uncertainty.

The Border Crisis: A Major Economic Drain

The out-of-control border situation is creating even more economic pressure in the United States, and tension on a global scale, as well. Illegal immigrants are flowing across the border at levels never before seen in our history, stretching resources in these areas past the breaking point.

With the country’s elected officials divided on how to handle it, real solutions have yet to be found even though our economy cannot stand the weight of caring for thousands of these illegal immigrants. And the world, and its markets, are no doubt watching and waiting.

Now, more than ever before, the importance of owning something of real value is on the minds of smart investors. With a world in turmoil, the stability and lasting value of gold has never been more welcome, or more needed.

By ETF Daily News

Related Tickers: SPDR Gold Trust (ETF) (NYSEARCA:GLD), iShares Gold Trust (ETF) (NYSEARCA:IAU).


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