According to Dawn J. Bennett, "Investors are seeing the truth behind our so-called recovery, which is that it's just not a recovery. They are acknowledging the signs that we may be on the brink of an even greater collapse, despite the words coming from media pundits, government stuffed shirts, and the Federal Reserve."
She continued, "And 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. 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."
Time and time again central banks, including the Federal Reserve, inflate asset bubbles through credit, housing and equity manipulations. They continue to do this despite the constant failure of free money and quantitative easing, says Bennett.
"I wish we lived in a country that produces more than it consumes, that values personal responsibility and saving money, and I wish our government valued fiscal responsibility, but it doesn't," Bennett wrote. "About half the U.S. is on the government dole in some form or fashion, with more than 45 million people on food stamps, and people are being paid by the government not to work. The people employed by the U.S. Government also enjoy huge salaries for what they do. We have trillions of dollars in debt and even more in unfunded liabilities."
Bennett says gold and silver are in a unique position right now. Along with being a currency, store of wealth, and hedge bet, these precious metals also serve as insurance against the loss of wealth, fiscally foolish governments, and the potential violent turbulence in collapsing markets.
"Now is the time to do the research and search for opportunities and protective strategies," Bennett wrote. "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."