Gold Is Still a Buy

Gold last traded at $1,939 an ounce. Silver at $27.13 an ounce.

NEWS SUMMARY: Precious metal prices traded lower after the Fed vowed inflation won't lift interest rates. U.S. stocks cheered the central bank's decision to let inflation run 'moderately' above its 2% goal.

Dyson/Rogue Economics---"My core thesis is that the U.S. government is broke. It is $26 trillion in debt and it cannot roll over - or maintain- these debts anymore without the Federal Reserve's money printer...No one says the U.S. government is broke yet. But they will soon (in the next 10 years). Except they'll call it a 'sovereign debt crisis' or something official-sounding like that. The Fed's balance sheet is currently at $7 trillion. The expansion of the Fed's balance sheet has slowed this summer, but it must soon start rising again... or else the Treasury's borrowing will cause interest rates to rise, which neither the Fed nor the Treasury will tolerate. So for now, we're just waiting for the end game to play out.....The trade of the decade - or maybe 'trade of the generation' would be a better term for it - is to sell stocks and buy gold. Even though gold recently made a new all-time high, the U.S. dollar started slipping, and the Fed's money-printing exploded this year, these trends are just beginning. My guess is gold will be far north of $10,000 an ounce - and the Dow-to-Gold ratio below 5 - by the time the U.S. government completes its bankruptcy and debt restructuring. So is gold still a 'buy' with the gold price near $2,000 and the Dow-to-Gold ratio around 14? Yes. Absolutely."