Today is a gray wet and windy day in the beautiful Vale of Glamorgan, a landscape that gives an old fashioned meaning to the words double dip.
I like to stay positive and so this post is way out of character. This is serious stuff and I pondered long and hard before sending it to you.
I was prompted to send it because I picked up a rumour that Germany may be poised to pull out of the Euro. I even heard that the banks were ready to issue the Deutschmark on October 1st 2010. Well that wasn’t true I know that the German people have been rooting for a return to their old currency, but I can’t say whether their shouts have really been heard.
If it were true I don’t think any financial guru can even begin to forecast the effect of this on the world economy. There are no historical precedents, but it does signal a time for me to look to personal and business finances to see if, double dip or not, I can make myself ‘bomb proof’.
I don’t have a mortgage either on a personal or rental property but if I did I would be looking to get rid of it – even by selling if possible because chances are this is the time the much forecasted hyper inflation will kick in. It is time to be ‘liquid’ too, to make sure there is nothing outstanding on my credit cards.
As it happens Gold is in great position to buy right now having dipped a little from the peak of a few weeks ago. Physical Gold is the best insurance, certainly not gold shares or bonds; they will be as vulnerable as any other paper asset. If the Euro does go belly-up – and we know that Spain, Portugal and Greece are struggling – then the price of gold will sky-rocket.
Silver is very useful too because if this ‘double dip‘ goes way down currencies will not be of very much use. Remember Zimbabwe in 2004? They were supported by the dollar but what if the dollar were shaky too? Many financial guru’s think a Dollar Doomsday is just around the corner.
Trouble is there is not a lot around, I have found a source of Emirate Gold and Silver (UK) and if you drop me a line at tony@zengold.com I would be pleased to put you in touch.
If holding physical gold or silver is a bit rich for your blood then the next best thing is holding it in a secure Brinks Storage Vault (world wide access). You can buy and sell gold quickly and easily here and they will store it for you in a secure bonded warehouse in London, New York or Zurich.
By the way you can claim a free gram of gold worth $43 so that you can have a play on the markets with no risk! – claim your free gram of gold here
Personally I do both and am building up my investment in precious metals every day. Remember the golden rule ” He who has the gold makes the rules!”
You can read more about Gold as Investment here
There will be a rainbow
Warren Buffett says “Over 10 or 20 years things are going to be fine BUT in the short term things are going to tough for a while. We see no real pickup in a whole variety of businesses.”
I am relieved to see that but for now I am concerned with this year and next so I can be around to enjoy Mr Buffett’s reconstructed world when the double dip is over.
Tony
The Life Design Studio does not act as a personal investment advisor or advocate the purchase or sale of any product, item, security or investment for any specific individual. The recommendations and analysis presented are for information only. Readers of Protecting myself fron that double dip should be aware that markets have inherent risks and there can be no guarantee of future profits. Likewise, past performance does not assure future results. Recommendations are subject to change at any time. Nothing in this presentation should be considered personalized investment advice. No communication by us to you should be deemed as personalized investment advice.
Copyright – 2010 The Life Design Studio. – double dip
