Why the Fiscal Cliff is Good for Gold (VIDEO)
Would Resolution of Fiscal Cliff Drive Gold Prices Higher?
Midas Fund Portfolio Manager Tom Winmill on the factors that could boost the price of gold.
Why the Fiscal Cliff is Good for Gold
First and foremost, the fiscal cliff creates economic uncertainty. We’re already seeing that: Just the anticipation of the impasse in Washington has caused many businesses to freeze hiring and cut back on investment and expansion. Since time immemorial, gold has been a top safe haven investment during times of uncertainty and fear.
Secondly, if the tax increases and spending cuts occur, the U.S. will fall back into a