NIA predicts precious metals prices will rise
May 20, 2009 by Personal Liberty News Desk
Despite the recent stock market rally and a better-than-expected job market report, the National Inflation Association (NIA) has continued to warn of the dangers of impending inflation.
New Fed estimates suggest the nation’s industrial production fell in April by the smallest amount in six months. This, combined with the fact that April jobs cuts were the fewest since October and the stock market rallied by 33 percent in recent weeks, has prompted some commentators to talk about a cautious economic recovery.
Not so, says NIA. It believes the improving labor market situation is due to the addition of non-productive government jobs, many of them temporary, and the stocks’ rally has been fueled by inflation.
As a result, it encourages Americans to get rid of the dollar and switch to precious metals as the safest way to store and protect wealth.
"In our opinion, the current bubble in the U.S. treasury market is bigger than the dot-com and real estate bubbles at their peaks combined," the organization said in a statement.
"When the U.S. dollar starts to crash, we believe the boom in precious metals will be bigger than the dot-com and real estate booms combined," it added.
Meanwhile, quoting official statistics, Bloomberg has reported consumer prices were unchanged in April as both food and energy costs declined to offset gains elsewhere.
In addition to that, over the past year average prices fell by the largest amount in more than a half-century.