Market Update: Golden Hedge Letter Report

The markets have entered an extremely volatile phase since Tuesday’s market open. If you’ve read my “Golden Hedge” newsletter, you would have noticed my trade strategy is to continue belief in physical commodities versus paper equities (general stocks etc). At this point, I am not changing my opinion or strategy and here are a few reasons why:

1) Most of you read the Coming Economic Depression blog almost everyday, so you should know that Main Street (the common people) are not much better off than times before. Sure, unemployment has slowed, but there is still 17% of the US workforce that are “under-employed”, meaning many are working only part-time, although they wish there were available full-time jobs, but cannot find them.

2) The reason why commodities are currently selling off is there is a short term (in my opinion) rally of the US dollar underway. The media tells us the US economy is recovering, while other countries are faltering, i.e. Greece, Spain etc. While the Euro counties may indeed look shaky and may need “bailouts”, the US economy is only one-step away from the cliff as well, as California, New York, Arizona and others have huge deficits. The US economy is currently held together by Fed stimulus monies, and if pulled our economy would begin its descent. Let’s not forget, there is very little internal growth in the US economy. I will continue to have the opinion that the Fed and treasury will NOT end stimulus in the near future.

3) There is a battle going on between the fiat moneychangers and those that understand precious metals are the standard definition of value. Metals are the only “real money” as governments cannot create them out of thin air. Almost every day the London markets sell Gold, the NY markets, sell Gold, while the Asian markets buy Gold prices right back up. Who will win this battle? China has more physical US dollar bills than anyone else on the planet. China has stated numerous times for their desire to own physical gold bullion instead of paper money. China, India and other “smart” Central banks will continue to buy bullion, especially as prices move lower.


Therefore, my friends do not give up hope during the fiat dollar rally, even though it may take weeks to complete. Make this time a buying opportunity for physical precious metals bullion (www.bulliondirect.com), as metals are the standard which to measure value. Do not allow the moneychangers to fool you about what value is real and what value is fiat. There is an old saying “buy when everyone’s selling and sell when everyone’s buying”. Until next time…Trader D.

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