The Future of Gold, Silver and Commodities in the Coming Recession

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...it is important that the USD will still be considered a "safe haven" and that money will flow into the bond market to finance credit account deficit. Otherwise gold will be at 1000, meaning death to the USD by a thousand cuts...

The shifting of world power will be the main investment focus of this decade. In order to understand which asset classes will benefit from this power shift, we need to look at the underlying trends.

... The main idea is that the US is no longer a superpower in its own chosen role of "the world's policemen." It costs too much and it is not respected any more. We now have an Empire of Debt. Read the book. It could be your best investment this year. The chosen reserve currency of choice, the US dollar, is no good anymore. Local elites have grown up and would like their cut; they do not like to do what they are told....What should we do? First kill gold: it is important that the USD will still be considered a "safe haven" and that money will flow into the bond market to finance credit account deficit. Otherwise gold will be at 1000, meaning death to the USD by a thousand cuts. Second, we must make the plunge into orderly decline, not into a devastating snowball effect.

With nominal rates moving down and real rates moving up (because of inflation and your need to finance current account deficit you have to give a discount on your IOU - higher rates) we will be back in negative rate territory like in 2002, and gold and silver will blossom again. That is why sold is "the Enemy of the State": one look at the price and you can understand inflation, real economy and political health. You can try manipulate it but you cannot outlaw it: Russians are buying it, Chinese are buying it, even Arab friends are counting their oil beans separately...

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