For the last 30 years, the two superpowers of the world (China and the US) have endlessly debased their currencies. I have explained this numerous times in past letters. As a result, the rest of the world has joined in order to avoid disaster on their home turfs. It's no longer a two-way street. Debasing is now a globalized phenomenon.
The word globalization has now turned into a battle of currency debasement and inflation exportation. I call it a currency war. Politicians call it globalization.But what happens when the world has printed so much debt that countries can no longer export inflation to competitors? The end result of this path is simple: Uncontrollable inflation.This won't happen overnight. And as I said many times before, inflation shouldn't keep you up at night when you're investing in stocks, as a company's earnings and revenue will generally grow to reflect that. Just look at the last few years - we're back to the highs before the 2008 crash. The S&P is back to 1461; just 39 points shy of my 1500 call earlier this year.
Maybe Russell Norman doesn't have such a wacky idea - if we don't join in, we're fighting the trend. Taxes are a way of stabilising the dollar by putting a value on the fiat currency, and most governments are always able to print money to pay some of their bills if they want to.
But all of this external jiggery-pokery makes the prospect of a rising gold price look very safe.
We're not talking about a new phenomenon here folks...
No, the USA is not next, but you can add Iran to the list. Iran owns 300 tonnes of gold and has it saved them from hyperinflation, a currency devalued 40% last week and financial ruin?
The hyperinflation bogeyman has been pushed by the goldbugs for years and it hasn't happened, nor will it.
Stories in the press are beginning to emerge that punters are reassessing their gold speculations following good news on the economic front in the USA. Will a rockfall turn into a landslide?
This is an exert from Kitco gold commentary and is often overlooked on this thread.
I suppose alot of this debate depends on which category you are in if any......
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Leaving out those who buy gold for numismatic reasons, there are three types of gold buyers. First are those Hug called the “fatalistic” buyers, who believe governments will eventually ban gold ownership or that they may eventually need gold for bartering purposes.
They usually buy gold in small sizes, which is the most expensive way to buy gold.
Second are those who buy gold for portfolio diversification, and third are traders who look to take advantage of fluctuations in the market. *****
There are of course those that are a combination of the groups such as those who buy for portfolio diversification ,but buy coins that can also be bartered if things get rough
You forgot about the conspiracy theorists and other loonies who are obsessed with world governments, the 'elites', the Rothschilds, J P Morgan and every other major bank, and scream blue murder every time gold takes a dive because it's the 'shorters', the manipulators and the Fed. LOL
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Originally Posted by skid
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