Old study: What a Poor Debt Ceiling Deal Would Do for Gold and Silver?
Will history repeat itself? We will see in 2-3 weeks.
The article by Diane Alter, Contributing Writer, Money Morning she stated"...
The most likely scenario is Congress will come up with some compromise on spending cuts ahead of the next debt ceiling deadline. But if lawmakers in Washington can't come up with a good enough budget deal to rein in spending and get the country's runaway deficit under control - while not derailing an economic recovery - another credit downgrade is highly likely.
If We Do Hit the Debt Ceiling, What Happens to Gold and Silver?
Falling off the debt cliff, or hitting the debt ceiling, means the U.S. government can't borrow any money. Scores of payments would immediately stop.
Failure to pay obligations would immediately devalue the dollar. As a result, gold and silver become increasingly more attractive as investors lose confidence in the greenback and equities.
Gold and silver are flocked to as safe havens from fiat currency. Meanwhile, the U.S. dollar can be printed in copious amounts and liberally pumped into the economy. Even concerns over hitting the debt ceiling can boost gold and silver..."
As up today, I have 400k in NUGT and USLV in one of my accts. Will see how it will do in 3 weeks.