I've been predicting a long bull market in gold since 2008 when the price was just 0 an ounce and silver was only . This year it gold shot up to 00 and is now a bargain at 55. Silver too nearly hit again and is now hugely underpriced at an ounce.
My predictions are that gold will go over 00 in 2012, possibly closer to 00 and silver will hit or more. I think that gold will be the investment of the year because none of the fundamentals have changed. We have the Euro crisis, US debt, QE…and yet Central Banks have more than doubled their purchases of gold in the last year. That's got to tell you something. If you haven't already got some physical gold and silver, I strongly suggest you get some while the prices are still so low.
Stocks and Currencies:
The Dow Jones and the S&P will close lower at the end of 2012 than this year, despite it being an election year which is often bullish for stocks. Unless you have money you can afford to lose, I would suggest you sell your stocks and put the money into precious metals.
There will probably be a major dollar rally for at least the first half of 2012 if not for the whole year. If you wish to diversify your risk and invest in currencies other than the US dollar, I would suggest the Canadian dollar, Swiss Franc and Australian dollar. However, it will be very volatile and my first preference would be gold and silver above currency investment which is far more speculative.
The Federal Reserve will resort to more QE in 2012 and so will Europe.
We'll see the collapse of more banks, the most likely large one being the Bank of America. The US banks I would be very careful of are: Wells Fargo, US Bank and of course Bank of America.
Cosmetics, jewellery, clothing, the law, police, security, insurance, the funeral business, banks, financial institutions.
Communications, technology, computers, mobile apps, writing, cellphones, transportation, social networking, nanotechnology, robotics, mind power, new payment systems, educational and learning devices.
Further falls are anticipated in most major markets. There will be small pockets of real estate that may not be affected by the huge price decreases, but they will be far and few between. In the main, I see property prices falling much further, probably another 40% and in some areas up to a 70% drop. If you are going into debt to buy a property right now, be aware that that same property might be considerably cheaper in a few years time. Don't be in too much of a hurry to buy real estate or you might be kicking yourself for not waiting until prices fall even more.
Property prices have tumbled in the US and in the UK and Europe leaving a few bargains out there. However, be very careful with buying any property and land during 2012. We will see so many more natural disasters it's going to be like a lottery finding safe places around the globe. This would not be a time to take out debt but to pay in cash for any assets that you buy. With events happening so suddenly and property being such an illiquid asset you may be stuck with something that you cannot sell and is worth much less than the amount you paid for it.
Have at least 3 months living expenses in cash outside of a bank. Keep a small amount of cash in bank. Spread your money between different banks. Don't take out any debt. Pay down any debts you have. Buy physical gold and silver bullion. Think carefully before investing in real estate – prices will come down further and with increased seismic activity and natural disasters, land could be a risky investment. Find a backup source for your electricity, e.g. a small solar panel to charge your mobile phone and laptop. Have emergency supplies on hand: at least 3 months water, 3 months food. Make sure you have copies of all your important documents. Have an evacuation pack near the door so that you can move at short notice.