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Thursday, April 28, 2011

Why you should buy precious metals

1. According to Ben Bernanke, recent inflation problems can be attributed mostly to poor weather conditions and the war in the Middle East.
2. The war in the middle east is probably a perpetual situation.
3. Weather is probably a perpetual situation
4. If 1, 2 and 3 then 5
5. Recent inflation problems are probably a perpetual situation.
6. As the dollar inflates, Gold and Silver become more valuable relative to the dollar.
7. If 5 and 6 then 8
8. Gold and Silver will continue to become more valuable relative to the dollar, in perpetuity.
9. If 8 then 10
10. you should buy Gold and Silver with dollars.

Additionally the Fed admits to believing that inflation has to be maintained at about 2 percent or so, meaning that at the very LEAST Gold and Silver will continue to gain at 2% even if all the "transient" reasons for inflation disappear.

This is all aside from the industrial value of Gold and Silver that will continue to drive the value up independently of the Federal Reserve being retarded.

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Some few of the things I find interesting: