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If looks and feel have anything related to it, rare gold coins would beat stocks each time. They're charming, beautiful, possess a nice heft for them and, because they've existed for some time, represent an intriguing slice of history. But there are more reasons, timely reasons, to incorporate more gold coins than stocks for your portfolio today...although making an assertion like this may come perilously near to blasphemy to traditional stock investors. Disregard the available clues at the own peril, though. For example... Clue #1:Call Options Indicate Higher Gold. This analysis comes from Prieur du Plessis and Adrian Douglas. In a nutshell, both of these men observed the December 2007 gold call option contracts were sizeable indeed, currently numbering some 122,000. What's more, they outnumbered the puts 2 to 1. According to this "positive gold surge," both du Plessis and Douglas believe gold is around the threshold of the big price jump. It's not the very first time Douglas believed by doing this. In November 2005, he predicted a surge within the gold price from the $460 level, according to an identical build-up of gold call options. 2 months later, gold was $100 higher. Next... Clue #2:Gold Demand continues to be Heading Higher; Gold Supply continues to be Heading Lower. The problem here only has worsened. Based on a recently available World Gold Council report, world gold demand is running 30% above last year while supply will continue to head south. The world's largest gold producer, South Africa, hit an 84-year low despite gold's soaring prices. As well as the world's top gold producers witnessed nearly a 20% decrease in output since 2001. Naturally, higher demand and minimize supply results in higher prices. Clue #3:"Triple Threat" from your Housing Dilemma. Harvard economist Martin Feldstein warned we face a triple threat from your housing downturn. Based on Bloomberg's September 2nd reporting of his Jackson Hole speech, "Feldstein outlined a ``triple threat' from housing: a "sharp decline" home based prices and construction; higher borrowing costs along with a "freeze" in credit markets stemming from sub-prime mortgage losses; and much less home-equity loans and refinanced mortgages, resulting in less consumer spending. The entire effect will, naturally, have scary consequences. "The economy could suffer a really serious downturn," he added. More reason to diversify in to the shiny stuff. Clue #4:America's Going the way in which from the Roman Empire-Comptroller General, David Walker. Yikes. You understand you're in danger once the guy responsible for government accountability, finds "striking similarities" involving the US as well as the Roman Empire. The conclusion from the Roman Empire. Among his comments, the united states is struggling with "declining moral values and political civility in your own home, an over-confident as well as over-extended military in foreign lands and fiscal irresponsibility from the central government." He's so serious he even refused to sign off around the government's "books." Yikes again. How exactly does this relate with gold and stocks? When high profile people in our very own government come straight out and warn us from the coming "economic tsunami," it's time for you to find refuge in gold. Clue #5:Inflation, Inflation and much more Inflation. Despite all of the government statistics on the planet, everyone knows that inflation is off and running. We realize that each time we fill our tanks. And somewhere at the back of our minds, we realize that rising energy prices need to be harmful to the economy, it affects everyone and anybody who sells anything. That intuition is, unsurprisingly, rooted actually. Based on the Federal Reserve Bank of Dallas, "nine from the ten post-World-War-II recessions were preceded by sharply rising oil prices." Using the Fed rushing to defer a recession by cutting rates, we know, somewhere within our psyches, the dollar are only further weakened, maybe dangerously so, from it's current historical weakness with each one of these cuts. As well as the bottom-type of all this change is inflation. We'll be required more dollars to purchase what yesterday's dollars utilized to buy. You've undoubtedly heard the adage, "In 1911, an ounce of gold could purchase a good suit. Today, still it can." That's by means of stating that gold keeps up to date with inflation. It did so in 1911. Still it does now, almost one hundred years later. Which is the reason why gold the weapon preferred by fighting inflation. For more information about rs 2007 gold and rs gold 2007,simply visit our website.
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