Monetary Thought

Recently I have been watching the huge amounts of US stimulus spending, the expanding of the US Monetary supply and waiting for the rise in inflation as a result. It's amazing to see gold trading at it's all time highest prices, currently trading over $1200USD/ounce. The rise in price is actually a reflection of the weakening US dollar. We've seen this also in Canada as the USD has weakened slightly to the Canadian Dollar. All of this is happening because the US Federal Reserve is printing lots of money as "stimulus money" and it has been diluting the purchasing power of their dollar. I also think gold will continue to go up in price.

These recent market events has been teaching me to connect the dots on a lot more of these economic variables that we see: monetary spending, foreign exchange and trade, and commodity trading.

All of this stuff to say....I think now is a great time to have money in hard assets. i.e. Gold, Silver, and Real Estate. Things that have intrinsic value, and that hold their value during periods of inflation. Although the US dollar is falling faster than the Canadian dollar (both are experiencing inflation, but the USD is going to have greater inflation), us Canadians aren't immune to the changes in prices, and I feel that now is the time to get out of cash or cash equivalents, and get into hard assets.

I am excited to learn more about Gold, Silver (and other metals) and continue to learn more about Real Estate.