By Michael Fitzsimmons
- US government debt should exceed $20 trillion next year.
- Domestic infrastructure is falling apart and more spending (debt) is badly needed.
- The Federal Reserve will not be able to significantly raise interest rates due to a systemically weak US economy which is likely to stay "weaker for longer."
- Low and even negative interest rates mean the cost of buying and holding gold is negligible.
- Long term, gold is going much, much higher.
Many goldbugs and analysts watch the price of gold very closely and try to time trades based on the latest economic data or Federal Reserve statements. I view gold much differently. In my mind, gold is something to buy and hold for the long term as an insurance policy for wealth preservation. The long-term chart for gold proves that this is a prudent way to view the shiny metal: