…The internet fueled the 1990s Dot.com bubble; blockchain technology stoked Bitcoin; the electric vehicle revolution triggered the recent bubble in Tesla; and next, I believe, a global currency crisis could trigger a bubble in gold that sends prices to unthinkable levels.
Governments around the world have made it clear they will continue to print money [and, as a result,] they eventually will have no choice but to default and restructure their debt. A new monetary system (likely digital) will emerge, and I believe this will be the driving force behind the bubble in gold.
Velocity of Money
Inflation and supply shortages will only get worse. In the latter phase of the monetary crisis, the velocity of money will increase sharply. Instead of hoarding currency, people will spend their dollars quickly – fearing widespread shortages and higher prices.
Physical Bullion Coins
Finding quality bullion products could become difficult partly because of resource shortages but more likely because of a demand shock (i.e where a rapid influx in demand overwhelms supply for months or even years)…[and] we are seeing some of this now.
I prefer government minted coins over bars or rounds. Why? They are recognizable and harder to counterfeit. There will likely be numerous fake coins and bars circulating near the end of the bubble – you will want to have something dealers and individuals recognize and trust.
When to Sell
Timing the exact top of a bubble is difficult. Towards the end, prices will often double in a month or less. People who have never bought gold or silver will be panicking to get some (fear of missing out). You will overhear conversations in the grocery store about a mining stock or a new “gold-backed” cryptocurrency [and] that is when you know we are getting close…
How to Prepare
I prefer a long-term accumulation strategy – trying to trade volatile markets is a recipe for disaster. Sure, you may have a good trade here or there, but eventually, you are going to get stung. I have developed a gold cycle indicator [see below] that helps me sleep better at night…
I believe a global currency crisis could trigger a bubble in gold sometime after 2024 that sends prices to unthinkable levels so you have time to prepare…
Editor’s Note: The original article by AG Thorson has been edited ([ ]) and abridged (…) above for the sake of clarity and brevity to ensure a fast and easy read. The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.
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