Where is the gold demand going to come from? China is telling their citizens to protect their assets in gold and silver. Right now, institutional funds on Wall Street currently only have 1% of their assets in gold and silver. If they increase their demand to 5%, there is going to be a higher demand for gold than is currently produced every year. This demand means that there is a way for you to make money in gold.
While the United States has already bailed out their banks, Europe is going to do the same thing. This is going to increase the value of gold as well. Some people believe that countries are going to have to go back to a currency that is backed with gold. If this happens and the banks have to cut back currency to only 10% more than the gold that is available, the demand for gold is going to increase by a large amount. This is cutting edge and not a lot of people know about this.
One of the simplest ways to understand this is to remove the zeroes from the current United States budget and pretend it is your family’s current budget. Your annual income is $21,700 and you spend $38,200. This means that 16,500 in debt is added to your credit card, creating an outstanding debt of $1,427,100 and you made a budget cut of $385. Do you think this is a sustainable budget? If this were you, wouldn’t you consider yourself bankrupt? However, the United States government is getting away with it right now. This is why it is the time to take action if you have wealth to protect.