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Armstrong states cycles are all defining, well yes, but once the trend has turned underlying supply / demand numbers (deficits), mining costs and closures, economic financial events and overall physical demand alongside paper leverage in the gold futures market will certainly be enormously important to the engine of that bull market !
Essential insurance asset diversification is now.
To some, this is a religious battle. To others, it is just a time to rip off a lot of people by selling fantasies and sophistry. I have stated this many times, so here it goes again: Gold rises when people lose confidence in government. It has nothing to do with inflation. So, you start to worry about government survival or who’s going to win a war when gold rises — not before.
Short term, we still have the risk of gold going under $1,000 per ounce. It’s going to flip when everything is right — not before. It will probably max out at $5,000 per ounce or perhaps $6,000 at best. That we will not know until we have the low and the projection angle from that low. We’re dealing with a very profound event, religion aside. Such events of political-economic trend resets come around every 309.6 years. The last one was the global revolution against monarchy which began in the United States.
If you just step back and look OBJECTIVELY at what is unfolding from electronic currency to G20 demanding info on everyone and every penny that changes hands, then you can see where the future is headed. We do not have a democracy; that is total nonsense. The president appoints the heads of all departments. Nobody stands for election right down to the head of the Federal Reserve.
In Europe, you have the three-headed dragon they call the Troika — the European Commission (EC), the European Central Bank (ECB), and the International Monetary Fund (IMF). None of those three members heads have EVER stood for election. They too are undemocratic appointments. So the European population cannot even vote for their future.
Gold will respond ONLY when the majority sees the crisis unfolding. Just because you may understand it and see the logical outcome does not mean that the bulk of the population will. During the American Revolution, they actually issued currency backed by assets confiscated from “Tories” or those who supported the king against the people.
There is no time for nonsense conspiracy theories or other sophistry. This is about a major shift in the political economic trend, which is far more important than the job to sell gold by people pretending to be analysts with nothing new to add to the issue other than inflation, fiat, and the theory that all paper currency is evil.
We are amazed that investors do not take gold seriously as a world asset class considering the last 15 years on the trot there has been only 1 negative year against 9 world currencies, also S+P 500 is still 68% lower in gold terms than the year 2000.Read More
IPM Comment: We have actually written about this very subject here 9 Trillion US$ Carry Trade That May Take The World Economy Down, What is it exactly?
Now Raoul Pal explains this trade very well indeed and how it will affect everyone of us going forward. A surging US$ will cause widespread pain in the emerging economies, including a final surge peak in the Bond markets to top off the greatest bubble in all of history - the debt bubble. Enjoy the video....