The recent panic selling in gold bullion caused those who were speculating to get out as their losses added up…[but] retail investors and central banks seem to be rushing to buy more. [Why is that? Let me explain.] Words: 260; Charts: 1
So writes Michael Lombardi (www.profitconfidential.com) in edited excerpts from his original article* entitled American Real Disposable Income Collapses in First Quarter of 2013.
This post is presented compliments of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Intelligence Report newsletter (see sample here – register here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. “Follow the munKNEE” daily posts via Twitter or Facebook. Submit your own articles & your article suggestions here (earn a “Hat Tip” acknowlwdgement) for posting consideration. This paragraph must be included in any article re-posting to avoid copyright infringement.
Lombardi goes on to say in further edited excerpts:
I still believe that the fundamentals that drove gold bullion prices [up] are still in place. Central banks are still buying gold—they have not shied away from gold bullion as prices declined from their 2011 highs.
While world central banks keep buying gold, many central banks, like the Bank of Japan, are printing massive amounts of paper money. In its semi-annual report, Japan’s central bank stated that it will continue to print at a pace of about $600–$700 billion per year. (Source: Financial Times, April 26, 2013.)
- Is the First of Many Currency Crises Just Now Unfolding? Are Gold & Silver About to Take Off As a Result?
Likewise, the Federal Reserve still hasn’t given any indication it plans to stop printing fiat money anytime soon. Ultimately, this phenomenon will force other countries to print more of their currencies because every country wants a lower-valued currency than the next country. Because of this, I believe central banks will buy more gold bullion to shore up their reserves.
- Which Country Will Win the Race to Debase Its Currency the Most?
- The Currency War: Which Country Will End Up With the Fastest Currency in the Race to the Bottom?
Dear reader, the bull market in gold bullion isn’t over yet! The selling we saw was just a mere pullback.
Take a look at the monthly chart below of gold bullion prices going back 10 years.
Chart courtesy of www.StockCharts.com
Since 2002, the trend in gold bullion prices has been to the upside, and from a technical analysis point of view, that trend seems to be intact.
I am as bullish as ever on gold bullion.
The recent plunge in gold prices below $1500 an ounce has suddenly awoken, well, just about everyone. The “gold bugs” are yelling that it is a conspiracy theory by the Fed while the stock market bulls say it is a sign that the Fed has achieved its goal of creating economic growth. Unfortunately, both arguments, while great for headlines, are wrong…The simple truth is that… Read More »
If central banks are preparing for a major change in the value of the dollar, shouldn’t we? The US dollar cannot and will not survive the ongoing abuse heaped upon it by government planners and federal officials. That not only means the gold price will rise, but that many, if not most currencies, will lose a significant amount of purchasing power. This has direct implications for all of us. Read More »
I expect the eventual endgame to this whole Keynesian monetary experiment that has been going on ever since World War II [will] finally terminate in a global currency crisis. [That being said,] I’m starting to wonder if we aren’t seeing the first domino – the Japanese yen – start to topple…[It has] cut through not only the 2012 yearly cycle low, but also the 2011 yearly cycle low and never even blinked [and should it continue its steep decline] and break through the 2010 yearly cycle low [of 105.66] I think we have a serious currency crisis on our hands. Needless to say, if the world sees a major currency collapse… it’s going to spark a panic for protection – to gold and silver. Wouldn’t it be fitting that at a time when they are completely loathed by the market they are about to become most cherished? [This article analyzes the situation supported by 3 charts to make for a very interesting read.] Words: 620; Charts: 3 Read More »
Competitive devaluation [the race to debase] or “Currency War” is more of a process than an event. Nations take turn to debase, back and forth, until the purchasing power of their currencies approaches zero. The map below monitors the progress of debasement as it unfold; country by country, currency by currency. Read More »
We believe that we are in the “competitive devaluation” stage presently [see graph below] as country after country is printing money in order to lower rates and doing whatever possible to devalue their currency – to have the fastest currency in the…race to the bottom – in order to export their goods and services. [The next stage will be protectionism and tariffs. This article gives an update on the race to debase.] Read More »