The future of Europe will be determined by the ongoing conflicts in the Middle East and in Ukraine, by the migration of millions of people and by the threat of force by European jihadists. Because of all these factors, there is a possibility that the conflict in Ukraine and the future migration process could destabilize Europe. In fact, I believe that the Caucasian race, which has dominated the world since the 17th century, could disappear in Europe. In twenty years, there could be a new Europe with a strong relationship with Africa and Asia. The tradition of Europe, which was built up by Emperor Charlemagne, will no longer exist.
As long as the markets continue to believe that the world, specifically the US, is in full economic recovery and higher interest rates are just around the corner, gold will remain under pressure. Personally, I think the downside is limited and we are getting close to a bottom of this cycle. My message here is that while you have many reasons to sell your gold, don’t. Gold is now on sale, and everyone wants to buy valuable assets when they’re cheap. Bullion’s current dip is a golden opportunity to buy low in order to sell high later.
The names of the programs change over time, but in essence the outcome is the same: injecting more money into the system. It is our understanding that we have more uncertainties today than a few years ago. This is also the reason why we believe that the global economy will not see a positive development in the years ahead. Holding parts of one’s wealth in physical gold and silver, stored outside the banking system, never made more sense.
While I still believe unequivocally that the United States is one of the greatest nations on this planet, I am amazed at the constant flaws of their foreign policy. I also think that government is being manipulated by big businesses, financial institutions and socialist government bureaucrats that promote big government over the individual. I hope this madness stops before it gets out of control. If things spiral out of control those people who hold gold and silver will retain their wealth. Those who hold fiat dollars will be destitute.
Could this mark the beginning of the decline of gold from prior highs? I don’t think the decline will start with force, given Janet’s comments this past Friday. The Fed is planning to maintain its schedule until better conditions prevail-this is fairly unpredictable given so many exogenous factors that could throw the recovery off, like further economic losses in Europe or China. However, once this begins, we might expect to see capital flow to where higher returns can be made. Given a pent-up demand for higher returns-hopefully it will not create an asset bubble.
Contrary to popular belief, rising rates are no threat to gold. This metal soared in the 1970s during the last secular rising-rate environment as stocks and bonds got hit. Gold powered higher again in the 2000s with both short and long rates far higher than today’s levels. And gold surged during the only major modern rate-hike cycle seen a decade ago, when the Fed more than quintupled short rates.
This is a clear and present DANGER ZONE. Evaluate your personal and family vulnerability to traumatic changes that must occur, whether in 2014 or during the next few years. Consider your personal and financial risk factors, and make adjustments as needed. Given your personal circumstances, will gold (and silver) or unbacked paper currencies and debt issued by insolvent governments serve you better during the next ten years of turmoil?
From the latest In Gold We Trust report: We expect that financial repression as well as wealth taxes in various facets will increasingly gain in importance in coming years. We believe this to be a disastrous strategy, as the redistribution will merely buy time, while the structural problems remain unsolved.
A severe economic and/or political crisis can sneak up on you before you know it. Learn from the three harrowing stories of international crisis survivors—and the insightful comments of experts like Doug—how to recognize a crisis in the making. You may need those skills soon because it can, and will, happen here…
Expect more spending, debt, wars, and price inflation. Expect higher food and energy costs, a devalued dollar, and less confidence in governments and paper currencies. Expect more stock market crashes, corrections, booms, and blow-offs. Expect more “happy-talk” from politicians and financial TV while most of the US, Europe and Japan suffers through what appears to be an on-going depression. Expect long-term economic safety with gold and silver, perhaps ONLY with gold and silver.
You see these strange massive selling sprees of gold in the cash market. That’s not the way an investor usually would sell. That’s a good way to lose money. Those sellings there clearly were intended by someone to drive the price of the precious metals lower, and you look at who has the biggest interest there and get a pretty good idea where the purchase’s coming from. You may have further of that but the long term trend here is to the upside. Gold is the only investment class, only asset class that has held its value, its purchasing power over the millennium.
As we approach the 100th anniversary of the start of World War I, the (non-mainstream) media is starting to talk about the parallels between then and now. Could it be true that there are similarities? This article discusses some of the intriguing and disturbing parallels between the period just prior to WWI and today. Understanding these parallels is of utmost importance, not only because the events leading up to WWI are also the indirect cause of the Second World War, but they are important to understand the similar problems we could be facing today.
The US GDP per capita vs gold ratio expresses the economic output per capita in gold, in other words in “real money.” It is interesting to observe that the US is currently generating economic output at the low end of long term standards. It is also interesting to observe that this period of time is similar to the ones in the 30ies (the Great Depression). Maybe that latter sheds some light on the “unreal” feeling that most people have in today’s economy.
Governments, such as the United States, United Kingdom, Europe, and Japan, spend their paper currencies as if tomorrow will never come. They act as if they believe debts can increase forever, more money will always be available, and debts can be rolled over forever. A recent US vice-president even stated that “deficits don’t matter.” Such economic sins may help the financial elite but they ultimately hurt most people and most economies.