Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21
CISCO 2020 Dot com Bubble Stock vs 2021 Bubble Tech Stocks Warning Analysis - 6th Oct 21
Precious Metals Complex Searching for a Bottom - 6th Oct 21
FB, AMZN, NFLX, GOOG, AAPL and FANG+ '5 Waves' Speaks Volumes - 6th Oct 21
Budgies Flying Ability 10 Weeks After wings Clipped, Flight Feathers Cut Grow Back - 6th Oct 21
Why Silver Price Could Crash by 20%! - 5th Oct 21
Will China's Crackdown Send Bitcoin's Price Tumbling? - 5th Oct 21
Natural Gas News: Europe Lacks Supply, So It Turns to Asia - 5th Oct 21
Stock Market Correction: One More Spark to Light the Fire? - 5th Oct 21
Fractal Design Meshify S2, Best PC Case Review, Build Quality, Airflow etc. - 5th Oct 21
Chasing Value with Five More Biotech Stocks for the Long-run - 4th Oct 21
Gold’s Century - While stocks dominated headlines, gold quietly performed - 4th Oct 21
NASDAQ Stock Market Head-n-Shoulders Warns Of Market Weakness – Critical Topping Pattern - 4th Oct 21
US Dollar on plan, attended by the Gold/Silver ratio - 4th Oct 21
Aptorum Group - APM - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 3rd Oct 21
US Close to Hitting the Debt Ceiling: Gold Doesn’t Care - 3rd Oct 21
Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
Original Oculus VR HeadSet Rift Dev Kit v1 Before Facebook Bought Oculus - 3rd Oct 21
Microsoft Stock Valuation 2021 vs 2000 Bubble - Buy Sell or Hold Invest Analysis - 1st Oct 21
How to profit off the Acquisition spree in Fintech Stocks - 1st Oct 21
�� Halloween 2021 TESCO Shopping Before the Next Big Panic Buying! �� - 1st Oct 2
The Guide to Building a Design Portfolio Online - 1st Oct 21
BioDelivery Sciences International - BDSI - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 30th Sep 21
America’s Revolving-Door Politics Behind the Fall of US-Sino Ties - 30th Sep 21
Dovish to Hawkish Fed: Sounds Bearish for Gold - 30th Sep 21
Stock Market Gauntlet to the Fed - 30th Sep 21
Should you include ESG investments in your portfolio? - 30th Sep 21
Takeda - TAK - High RIsk Biotech Stocks Buy, Sell, Hold Investing Analysis for the Long-run - 29th Sep 21
Stock Market Wishing Away Inflation - 29th Sep 21
Why Workers Are NOT Returning to Work as Lockdown's End - Wage Slaves Rebellion - 29th Sep 21
UK Fuel PANIC! Fighting at the Petrol Pumps! As Lemmings Create a New Crisis - 29th Sep 21
Gold Could See Tapering as Soon as November! - 29th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Thrives, Paper Dies

Commodities / Gold and Silver 2015 Dec 17, 2015 - 04:32 PM GMT

By: DeviantInvestor

Commodities

(From “Bobby,” a reader – posted as a comment)

Both Gold and Silver it is said
Are jeered yet feared by the Fed
For if they rise it will but show
The dollar’s worth is very low
So if they rise in upward trend
The Fed then feels it must defend
The things they do we know aren’t right
But they don’t care, they have the might


To lie and cheat and say “F.U.
We have our man, we have Jack Lew
The FTC, just who are they?
They’ll do our bid, we’ll have our way”
A falling price we must endure
Until no gold they can procure
To fuel their scheme and thus prolong
Their crooked plan that will go wrong
So Gold and Silver you should collar
Not stocks, nor bonds and not the dollar
Our day will come, you wait and see
Our stacks will show what they can be.

To Paraphrase Bobby’s Thoughts:

  1. Gold is the enemy of Central Banking. A rising gold price indicates central banks are devaluing their paper currencies too rapidly.  Hence they “jeer” gold and simultaneously “fear” it.
  2. The Fed must defend the “funny money” it has created. That usually means suppressing the price of gold through “leasing” or selling gold.  They will until they can’t.
  3. The “game” is over when the gold available for “leases” and sales is gone. That day is not here yet but it seems close.
  4. Many global stock markets are down hard. Several $ Trillion in global bonds yield negative interest (crazy).  Currencies have been declining in purchasing power for decades.  Gold and silver remain – the last ones standing.
  5. Stack silver and gold!

In Contrast to Bobby’s Thoughts …

If you want a more conventional approach, then read the propaganda from central banks, too-big-to-fail bank forecasts, and Keynesian economist papers.  Also Harry Dent thinks we will see gold prices perhaps as low as $250 – $400 in a few years.  He believes that gold is only a commodity and that commodities peaked in 2010 – 2011 and will not peak again until about 2038 – 2040.  Hence gold, according to Harry Dent, after 4.5 years of falling prices, is still over-priced and going lower.  I disagree, but I suspect his view is popular, especially among central bankers.

Regarding What Harry Dent and Central Banks Think, Consider the Basics:

  1. Politicians will spend more than their revenues and will increase debt as long as they can. There is no doubt about politicians and spending.
  2. Increasing debt correlates with increasing gold prices on average. See log-scale graph below for gold prices and official US national debt since 1971.
  3. Debt will increase and so will gold prices, regardless of suppressed or free markets, crazy or sane policies, with or without Keynesian nonsense, with or without hope and change.
  4. The world appears closer to another world war, or at least a proxy war in Syria. War and related expenses, massively increased debt, and “money printing” will increase gold prices.
  5. Western socialist governments spend far more on welfare and warfare programs than they can collect via taxing citizens. Hence we should expect more unpayable debt, inflation, economic nonsense, “money printing” and (unfortunately) a hot war to divert attention from failed policies.  Debt, inflation, economic nonsense, welfare payments, “money printing” and wars will increase the price of gold.

CONCLUSIONS:

The US official national debt has increased from under $ 2 Billion to almost $19 Trillion in the 102 years since the Federal Reserve was created.  Gold has increased from $20.67 per ounce to today’s price of about $1,070.  Expect more debt and higher gold prices.

Gold prices have been crushed during the past 4.5 years.  Expect a reaction higher.  When?  If you are a stacker it matters little whether the low was this month or will occur in 2016.  The inevitable reset higher should occur relatively soon, and will not be delayed until 2030 – 2040, as per Harry Dent and others.

Gary Christenson

GE Christenson aka Deviant Investor If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2015 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Deviant Investor Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in