In 2000 I started buying Gold Bullion Coins ( Maples,Krugerands,Eagles) when I had some "extra" money laying around as I did not want to put it in the bank. Gold was under $ 300 per ounce and very few people thought that was a very good investment " because gold gathered no interest" ! Well I don't have to tell you where gold has come. I still try to buy a few coins from time to time and the "premium" on these bullion coins has gone up significantly....this is just the beginning ...and a sign ( to me) that gold has a lot further to go. I do not know how far gold will go but it will go up for several years to come. Why?

The US housing market has just started to get killed....Honolulu ( where I live) is a very expensive real estate market and we haven't even started to get the full effect of the housing crunch.....In 1980 we went through a similar crash and it took over 10 years and a lot of big bankruptcies to finally stop the collapse. Unfortunately we will see the same thing again very shortly.

Inflation...I sometimes listen to the "mystics" on CNBC and laugh when they tell me there is "no inflation" !! Don't these guys buy things in the store....Milk and Soda have gone throught the roof as well as all food products. Anything made from oil products ro metal has also gone sky high. They might not see it at CNBC but the man and woman on the street knows there is severe inflation!

Tourism is big in Hawaii and I laugh when I see that all the tourist items are no longer made in Hawaii but are made in China like everything else. As the US Dollar goes in the tank all of these items will cost more. The only saving grace here is that tourists ( like those from Canada) can now come to Hawaii at a more reasonable price than in the last ten years. This will save the Hawaii tourist business.

Big US inflation is on its way and there is nothing the Fed can do to stop it. The price of Gold will continue to climb!!