Gold is underpriced! Look beyond price as a distraction.
Conservatively in my opinion Gold should be as high as US$3000 / ounce right now, it could even overshoot to as high as U.S$10,000 an ounce given mass speculation and bubble.
Look beyond the current artificial or secular bear market of gold you call it, and lay down the price of Gold relative to the M1 money supply of the United States.
Since the start of the 2008 crisis have resulted into waves of Quantitative Easing, releasing more and more money at an ever increasing velocity.
What did we end up? Have the economy improved or is simply getting worst right now?
Quantitative Easing have only inflated asset prices (stocks, real estate, bonds) and not the main street. Zombie industries that should bankrupt by now are still surviving with access to cheap money at low interest rate.
Think about it, why isn't the price of Gold going up as fast if it was money? There is a true difference between the definition of money and currency. The price of Gold is simply artificially surpassed by major banks via naked short selling and people who stand to lose the most when Gold is up (FED).
Check out this article by ZeroHedge: www.zerohedge.com/ne...g-just-snapped-comex
There is now a unprecedented 228 ounces of paper claims for every ounce of deliverable "registered" gold. So why not take advantage of it and buy low while they are 'manipulating'? They may be able to hold the price in the short timeframe, but never in the long timeframe as that still depends on supply and demand.
So what if NASDAQ rallied 300% since the start of QE1? Have you really profited when the money supply too have increased by the same amount in the economy?
Money is something that does not lose value over time, and you can be sure that you retain your purchasing power and can purchase the same amount of bread with the same amount of gold in future.
Currency or FIAT is simply a medium of exchange, and does not have value. The U.S. Dollar have lost over 94% of its value since 1970s, while that is not the case for gold.
To fund social spending, war, healthcare government often do deficit spending using up the wealth of future generations to pay for the current. Sure, as long as it does not collapse during their elected period of 5~10 years. Look everywhere, governments will and always kick the can down the road. Moreover the money supply can never stop accelerating, as there will never be enough 'currency' to pay off all debts in existence. If there are only $100 in the economy and you borrow $100, how would you pay off the 5% interest?
Major reset will be required in the coming decades, as we get into the start of hyper inflation worldwide.
The next reset in the financial system there'll be a massive and massive wealth transfer between those who held unbacked fiat and money.
Gold should at least be part of everyone's holding, not paper or derivatives but physical.
finally, never and do not discount bitcoin :) such a reset will have major and profound effect for a market like this given distrust in fiat and other government backed currency
-----------------------
Credits:
Mike Maloney: www.youtube.com/watch?v=iFDe5kUU...
ZeroHedge: www.zerohedge.com/ne...g-just-snapped-comex
Look beyond the current artificial or secular bear market of gold you call it, and lay down the price of Gold relative to the M1 money supply of the United States.
Since the start of the 2008 crisis have resulted into waves of Quantitative Easing, releasing more and more money at an ever increasing velocity.
What did we end up? Have the economy improved or is simply getting worst right now?
Quantitative Easing have only inflated asset prices (stocks, real estate, bonds) and not the main street. Zombie industries that should bankrupt by now are still surviving with access to cheap money at low interest rate.
Think about it, why isn't the price of Gold going up as fast if it was money? There is a true difference between the definition of money and currency. The price of Gold is simply artificially surpassed by major banks via naked short selling and people who stand to lose the most when Gold is up (FED).
Check out this article by ZeroHedge: www.zerohedge.com/ne...g-just-snapped-comex
There is now a unprecedented 228 ounces of paper claims for every ounce of deliverable "registered" gold. So why not take advantage of it and buy low while they are 'manipulating'? They may be able to hold the price in the short timeframe, but never in the long timeframe as that still depends on supply and demand.
So what if NASDAQ rallied 300% since the start of QE1? Have you really profited when the money supply too have increased by the same amount in the economy?
Money is something that does not lose value over time, and you can be sure that you retain your purchasing power and can purchase the same amount of bread with the same amount of gold in future.
Currency or FIAT is simply a medium of exchange, and does not have value. The U.S. Dollar have lost over 94% of its value since 1970s, while that is not the case for gold.
To fund social spending, war, healthcare government often do deficit spending using up the wealth of future generations to pay for the current. Sure, as long as it does not collapse during their elected period of 5~10 years. Look everywhere, governments will and always kick the can down the road. Moreover the money supply can never stop accelerating, as there will never be enough 'currency' to pay off all debts in existence. If there are only $100 in the economy and you borrow $100, how would you pay off the 5% interest?
Major reset will be required in the coming decades, as we get into the start of hyper inflation worldwide.
The next reset in the financial system there'll be a massive and massive wealth transfer between those who held unbacked fiat and money.
Gold should at least be part of everyone's holding, not paper or derivatives but physical.
finally, never and do not discount bitcoin :) such a reset will have major and profound effect for a market like this given distrust in fiat and other government backed currency
-----------------------
Credits:
Mike Maloney: www.youtube.com/watch?v=iFDe5kUU...
ZeroHedge: www.zerohedge.com/ne...g-just-snapped-comex