- Gold has no counter-party risk in a 2008-style crash.
- The continual devaluation of the US dollar is inevitable.
- Gold will eventually return to its true historic role as money.
- The destruction of government balance sheets, continual devaluations, and the widespread implementation of zero interest rate policies probably will result in hyper-inflation.
- Central banks are nearing an inflection point where they no longer can supply the gold necessary to prevent rising gold prices.
- Gold has survived governments, leaders, parliaments, central bankers, economic stupidity, graft, corruption, and wars.
- Investment demand for gold is rapidly accelerating. The western world is in the early stage of a panic and “gold rush.”
- There is growing recognition that many paper gold products are not backed by physical gold.
- Mine supplies are not anticipated to rise for several years, if at all.
- Eastern Central Banks are accelerating their purchases of gold.
- Skepticism about official U.S. gold reserves is increasing.
- Large short positions in futures markets must be reversed or “cash settled.” (The paper suppression game cannot continue forever.)
- Gold prices are climbing from their December 2015 low in an established bull market.
- Up to $10 trillion (Doug Casey) in U.S. dollars may return to the U.S. and create dire inflationary consequences if global confidence in the dollar fades due to war, politics or economic policies.
- A derivatives disaster is likely. Counter-party risk will rise again!
- Long after most fiat paper and digital currencies have disappeared, gold will be used as money or backing for currencies.
- Gold will rise to $10,000, or far more, depending upon government and central bank devaluation policies. Expect $10,000 in years, not decades. Read: “Buy Gold Save Gold! The $10 K Logic.”
(This list was edited and adapted from an email blast by Tom Cloud).
Corporations and central banks protect their interests. Examples:
- Wal-Mart does not encourage shopping at Amazon.
- The American Medical Association does not encourage the use of Chinese medicines.
- Big pharmaceutical companies strongly encourage the use of their highly profitable patented drugs, and they discourage the use of all remedies and medicines that cut into their cash flow.
- When 3rd world dictators flee their countries, they take gold bullion, not their paper currencies.
- When foreign armies invade countries (Kuwait, Iraq, Libya, Ukraine etc.) they confiscate gold, not paper currencies.
Central banks and commercial banks create dollars (and other currencies) from “thin air,” but are powerless to create gold, which is real money competing with the unbacked paper and digital stuff. Don’t expect western central banks to support, praise or encourage gold ownership.
- Western central banks support their digital and paper currencies and see gold as a competitor. Consider the source when listening to their pronouncements and predictions about gold prices.
- Gold prices have risen as paper currencies have been devalued for over a century. The devaluation process will accelerate.
- Do you believe central banks will voluntarily dissolve, congress will balance the budget, the national debt will be repaid, the western world will return to honest money backed by gold, and ten other improbable changes? If not, then expect unbacked fiat currencies to continue their one-way journey toward zero, and expect gold to rise when priced in those devaluing currencies.
You can purchase gold and silver bullion and coins from many dealers. The following are, to the best of my knowledge, safe and reliable, but do your own due diligence. Protect your assets and savings while you can.
Tom Cloud Precious Metals
Read my book: “Buy Gold Save Gold! The $10 K Logic.”
Amazon: Paperback and Kindle
gechristenson.com: Paperback and PDF.
The Deviant Investor