With Consumer confidence at lows comparative to the 2009 recession numbers & hope in the future at lows not seen since 1980 3 out of 4 believe we will enter a recession in the next 12 months. These are the latest numbers in a Reuters/University of Michigan survey. Overall, the data indicate that a renewed downturn in consumer spending is as likely as not in the year ahead, Reuters survey director said Richard Curtin as reported on CNBC. Even without a downturn, consumer spending will not be strong enough to enable the rapid job growth that is needed to offset reduced long-term expectations. Curtin added in the report.
Does all of this echo the recession of 1980 & gold’s run to over $800? Are we repeating history? Yes & No. Yes the recession will come it is inevitable. No this doesn’t mean gold is going into an 80’s style bubble. Recessions cycle based on a number of reasons in the economy but mostly because it is the natural progression of economic life. Gold may or may not be in a bubble but the chief differences are the new demands on gold, the declining values of all fiat currencies & finally the lack of other viable safe-haven options.
Gold will continue to cycle higher for the near and long term. The questions you must answer is: am I financially prepared to to face the coming crisis? If the answer is no then look into adding to or starting a Tangible Asset Portfolio as financial insurance for your total net worth.