It’s obvious to see why investors world wide are dramatically increasing their precious metals holdings:
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Precious metals has always been a store of value or thought to be insurance on your wealth. |
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The US dollar has become a liability no longer an asset to many key countries. Because of that, the US dollar has lost nearly 40% of its value relative to the other major currencies. |
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The turmoil in the municipal bond market has caused municipal money market funds to buy taxable securities , resulting in big tax bills for investors. |
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Billions of dollars of securities were rolled over into auctions by big wall street firms like Goldman Sach's, Citigroup and Merrill Lynch. |
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A combination of looming recession and persistent inflation is reviving the scare of stagflation. |
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We have corner stone U.S. companies like GM reporting record losses, GM's ended 2007 $38 billion in the red. Which is the largest annual loss ever by an automaker. |
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The credit markets pain has has been getting worse, Market's CDX investment-grade index which tracks the cost of insurance against investment-grade corporate defaults has swollen an amazing 330% since June. |
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Hospitals, schools, public utilities and other institutions that have issued auction-rate securities are scrambling to avoid paying higher interest rates in this newly troubled corner. |
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Surging commodity prices and a sluggish economy were poison for corporate earnings. Investors scale what there willing to pay for future earnings, driving price-to-earnings multiples lower. |
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The dollar has hit all time lows against the Euro @ 72.98 |
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Oil has hit $130 per barrel and projected to go higher. |
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Data from the U.S. Treasury has shown an outflow of $163 Billion from all forms of U.S. investments!! |
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The greenback has already fallen below the Canadian Loonie for the first time since 1976 & has closed at $2.032 against the British Pound, another record low for the dollar. |
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80% of mutual funds under perform the market every year. |