Submitted by Stewart Thomson:
Too much money printing can cause a currency panic. That would be followed by institutions pulling out of the country altogether.
The reason I want own to gold is because governments are attempting to print their stock markets higher. Gold and resource stocks will drastically outperform the global stock market indexes like the Dow and the Nikkei.
The period of drastic out-performance should have come earlier, but it didn’t, due to the implosion of Lehman. Gold and gold stocks were beginning to go parabolic in 2008. While the Lehman event delayed the parabolic move, it also made the crisis bigger, and probably greatly increased the size of the ultimate move.
On the daily chart, bonds are the most oversold, and gold is close behind. Don’t worry, silver is in very good hands, and soon the “wild one” will be oversold too, and ready to surf the rising Fed balance sheet, to higher prices!