Why you should buy gold and silver now

Few investments can make that claim. The only one we know of is silver, which has soared 790% over the last eight years, and now at a 31 year high. Gold hits new record; silver at 31-year high.
This leads some to believe that these markets are in a bubble, but we don’t agree. We still recommend buying gold and silver as they will likely remain top performers, rising even further in the years ahead.

 

Inflation growing

Inflation is starting to pick up. It’s set to intensify and this will be an important factor fueling these trends.
Most people think of inflation as rising prices. And while it does push prices higher, it’s not the cause of inflation.
The direct cause is excessive money creation. And the fact is, more money has been created over the past couple of years than at any time in U.S. history. So the cause has already taken place. The effect is just getting started.
We know that commodity prices have been moving up rapidly, especially food and oil prices. As a result, producer prices have been picking up a lot of momentum over the past four months. This month, however, was a real eye opener.
Producer prices soared at an annualized rate of 19% due to the biggest jump in food prices in more than 36 years. Food prices alone surged an unbelievable 47% annualized in their largest rise since 1974.
This is already equivalent to the inflationary 1970s and, unfortunately, no one knows how this will all unfold. The point is, we’re in uncharted territory.

Government spending gone wild

Government spending has created the biggest debt hole ever. In fact, the government is spending so much money, it can no longer rely on foreign lending as a last resort. So the Fed has stepped in to fill the void. It’s been buying massive quantities of U.S. government bonds, essentially funding this unprecedented spending, and creating money out of thin air to do so.
Meanwhile, the latest monthly deficit hit $223 billion, the biggest in recorded history. This comes at a high price, and that’s inflation. Remember, too much money means a weaker dollar. That is, it takes more dollars to buy things, which drives up prices.
This is not anything new. It’s happened over and over in many countries for thousands of years, and it’s happening again.


Source