Why Gold? Why Now?

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Financial expert Dawn J. Bennett recently wrote an article in which she discusses the rising value of gold. Gold recently exceed its 15-month high of $1300; the last time gold broke that mark was 67 months ago on September 29, 2010. According to a report from RBC Capital Markets, the upward trend in the market could cause gold to go over $1400. In her article titled “Why Gold? Why Now?” Bennett explains why gold will continue to go up from its 15-month high.

According to Bennett, investors are discovering the truth behind the “recovery” and that is that it is not a recovery. They are recognizing the signs that suggest we are nearing an even bigger collapse, despite reports of the contrary from the media and the Federal Reserve.

“In the face of deranged markets, the draw of gold is clear. Gold and silver have held many roles over history, but one significant one has always been as a hedge against turbulent markets,” Bennett wrote. “These days, the role of gold as a currency, competing against the dollar, the euro, the yen, the yuan, is coming back into focus as well: there is a gold-backed cryptocurrency (think Bitcoin) called the Hayek, and the IMF is backing some loans with gold as security against fiat currency.”

Bennett notes that central banks have time and time again inflated asset bubbles through manipulating credit, housing and now equities. Though free money and quantitative easing consistently fail, banks continue to do it, with many citizens even calling for it.

Despite media reports, the U.S. is not outside of the meltdown in “global” markets. Billions of dollars are borrowed by U.S. corporations at barely 1%, so they can buy back shares of their own stock. This dynamic is responsible for almost 50% of the recent increases in the stock market, says Bennett.  Not to mention, about 50% of Americans are on the government dole in some form, whether through food stamps or being paid by the government not to work.

Bennett believes gold and silver are currently in a unique position because they can serve as insurance against the loss of wealth, potential violent turbulence in collapsing markets, and fiscally foolish governments.

“As with any kind of insurance, you can buy it and hope never to need it,” wrote Bennett. “Now is the time to do the research and search for opportunities and protective strategies. If you do your homework and can be comfortable with the fact that gold and silver can be volatile, consider putting 5 to 10% of your portfolio in gold and silver coins, or other investments in this historic and lasting asset.

To view Dawn J. Bennett’s complete commentary, click here.