Gold Will Overwhelm Dent

Harry Dent is a good demographer and stands for what he believes.  But this is not about Harry Dent.

Charles Sizemore is a writer and editor who works for Harry Dent, but this is not about Charles Sizemore.

This is about gold!


Over a century ago JP Morgan understood that gold was money and the rest was credit.  But he lived when you could buy groceries with a gold eagle and a cup of coffee cost a few cents.

Ben Bernanke and hundreds of other “paper pushers” ignore gold, pretend not to understand it, and pressure the world to transact business using their paper currency Ponzi schemes.  Why?  Because the dollar (euro, yen, pound) Ponzi scheme produces power and profit for the financial community and politicians.  But this is not about the bankers and politicians who want control over your money as they extract a slice from every transaction.

This is about gold, and it is not personal with Charles Sizemore.  He represents a typical view of gold so I’ll use quotes from his article.  It could have been any of 1,000 other writers.

“Gold isn’t so much an investment as it is an emotional ideology.”  He thinks belief in gold is basically a religion and he is critical of those who believe it is the “one true currency.”  He promotes a mainstream view created by the political and financial elite in the west for their own benefit.  Don’t try to sell this nonsense in China, India or Russia.

History shows that silver, shells, rocks and other items have been used as currency over the centuries, but societies have usually chosen silver and gold as their preferred currencies because they have worked better.  Gold and silver were used because they held value, were universally recognized, accepted, and were convenient.  Gold and silver were used as honest money until the central bankers gained control over the money.

Gold and silver still hold value and are universally appreciated, but you can’t buy groceries with silver or gold.  However, you can use a debit card and pay a 1% fee to the bank, or use a credit card and pay a 3% fee to the bank in addition to 10 – 20% annual interest.  Yes, I know, the grocer officially pays the fee but ultimately you pay it in higher prices.

Sizemore:  “Gold is an inflation hedge…  The big problem here is that an inflation hedge is only valuable when you actually have inflation.”  Hmmm.

  1. Have you looked at prices in a grocery store?
  2. Yes, I know. Gasoline and televisions are cheaper.  Did they compensate for your increase in health insurance costs from Obamacare?
  3. College tuition? NFL games?  Beer?  Cigarettes? Local taxes?
  4. Health care, prescription drugs, hospital care, ER care, doctor office calls?
  5. Apartment rent and housing costs?

But it is misguided to believe that people primarily buy gold as an inflation hedge.  Yes, there was inflation in the 1970s and people bought gold.  People also bought gold during thousands of years when there was no inflation.  The real issue is that gold is an honest currency and therefore is a hedge against currency devaluations by central banks and governments who devalue to increase banking profits and allow governments to overspend their budgets.

When governments and central banks are allowed to devalue their currencies without restraint … they do what you would expect … they devalue their currencies and overspend.  Argentina has devalued their currency so much that they lopped off 13 zeros from their currency in the last 60 years.  The process is less extreme but similar elsewhere.

Sizemore:  “Gold is a crisis hedge….When the world gets shaky, investors tend to flock to the U.S. dollar and to U.S. government bonds rather than to gold.”

Which is more sensible?  Flock to a 5,000 year old currency that has no counter-party risk and is valued globally … or flock to a debt based fiat currency (or bond) issued by an insolvent government that has a 100 year track record of devaluing its currency and has publicly stated its intention to continue that devaluation?

Sizemore:  “Gold is a store of value.  This one I just don’t get… So assigning a real value to gold is just about impossible.”

No comment needed!  Anti-gold propaganda is heavily promoted because gold is honest money that generates little profit for the financial community and because it competes against the paper stuff issued by central banks.

Harry Dent believes that gold prices will fall to $700 and possibly as low as $250 in the next five to ten years, so he discourages buying gold.  If you prefer debt based fiat currencies that can be created by the trillions with a keystroke, confiscated easily, and devalued overnight, then by all means, trust in those dollars, euros, and yen instead of gold.  The financial and political elite might thank you.

It is not about Harry Dent or Charles Sizemore … it is about gold and devaluing fiat currencies.


Read:          Bill Holter:  Harry Dent is Delusional!

Jason Hamlin:  Will Harry Dent Eat Crow…?

Steve St. Angelo:  2012-2015 U.S. Gold Supply Deficit


Gary Christenson

The Deviant Investor

20 thoughts on “Gold Will Overwhelm Dent

  1. One of my favorites quotes: “If you don’t own gold, you know neither history nor economics.” — Ray Dalio
    That about says it all.

  2. It’s really not too hard to make predictions about the future, because there are no consequences. Harry Dent has been peddling newsletters for years, and occasionally he hits it right, but he’s wrong most of the time, and people still follow him and support his lifestyle. Like Casey, Armstrong, or any other, they peddle their version of snake oil, and whether they say it’s all up, all down, or all over, they still make money off of suckers who follow them.
    If Dent is correct about the future of gold prices, it will only be because everything else just got cheaper as well, food, fuel, homes, etc. Prepare as best you can and then forget about it, live your life in peace, and stop following the doomers, they have been around as long as I can remember, and will be long after we are all gone.

  3. Eventually Mr. Dent’s predictions I think could be proven correct, but not right now.
    Gold and silver prices will go up, and could possibly increase a lot. But all the “experts’s” predictions will have to be taken off the table once the massive financial panic and collapse happens. There will be a run on the banks, and they
    will be forced to close. When this happens cash in your hands or under your
    mattress will be king, and precious metal prices will collapse. The dollars in your hands will increase in valuable because there will be a massive shortage
    of them. It is a matter of figuring out the timing of when these events will take

  4. The valueless dollar and all it represents ,will see more people around the globe into the poor house than any other debt instrument on the planet.The dirty dollar is nothing but a lie.
    Turning to GOLD which has been with us since GOD created the world has been will always be a store of value used in jewellery and for monetary purposes
    it is in fact the most SUPERIOR form of money known to man and represents THE TRUTH.
    The Dents and Feds of this world are confused and corrupt and as the history book has shown us that all FIAT currencies have a very short life in the bigger scheme of things.Let us never forget the Weimar Republic and their great RESET where 50,000 Old Deutsche Marks were exchanged for only
    One New Deutsche Mark.
    FINALLY and please all of you remember this until the grave that…..

  5. I am not sure why Dent is discouraging gold ownership at this critical time in financial history. Is he working for the man or does he know something about gold manipulation we don’t that will allow the fiat magicians to continue to suppress gold. Based on consensus gold will be needed to reset the World economies based on a recognized monetary standard. To do that gold will need to have a value set at a much higher level. Holders of gold will reap the benefits of that reset. Holders of fiat currencies will lose their wealth through devaluation.

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