I am always wary of emphasising the fear premium of precious metals. It strikes me as a bit of a miserable way to promote BULLIONROCK: harbingers of doom and purveyors of the finest bullion.
In my personal opinion, precious metals should provide diversification to an investment portfolio. That said, it would be folly to ignore the fact that gold, in particular, is often viewed as an asset class that performs well in times of crisis.
Is there anything to worry about at the moment then?
Well, the US Treasury has said the $16.7 trillion debt ceiling must be raised by October 17 to avoid a potential default on US government debt. The "debt ceiling" is now the top priority for discussions in Washington even as the government remains shut down. Republicans are planning to demand concessions to raise the debt ceiling, while the White House and Democrats say it must be increased unconditionally.
Failing to do so, the Treasury warned in a new report, would have catastrophic consequences.
"A default would be unprecedented and has the potential to be catastrophic: credit markets could freeze, the value of the dollar could plummet, US interest rates could skyrocket ... [and] the negative spillovers could reverberate around the world ... there might be a financial crisis and recession that could echo the events of 2008 or worse ... "
All in all, sounds like quite a good advertisement for our business!
Feel free to brush up HERE on the whole US debt ceiling story if you like.
Friday October 4, 2013 by