Gold Only Functional Hedge Against Downgrade Of Treasuries

Posted at 12:18 PM (CST) by & filed under General Editorial.

Dear Extended Family,

There is no functional hedge against the downgrade of US Treasuries that is sure to come with or without a default except gold.

The cat is out of the bag. The political opposition can back the present administration into a corner on the most important issue, debt.

If that is the case with debt, then what else could they do it with?

To assume there will be a default is extreme, however within a week we will know. There are those in the political opposition that might go to any length to cripple the present administration.

The only conclusion that I can come to is that you should NOT take your gold hedges off. At $1764 a runaway gold bull market becomes an exponential run away gold bull market.

After $1754 Alf and Armstrong become the predictors of note for Gold at $3000 to $12,500.

Respectfully,
Jim