Monday , 20 May 2024

The Political Process is Affecting the Price of Gold – Here’s How & Why

I am baffled by the reluctance of knowledgeable analysts toMultiple-forms-of-gold-bullion entertain the prospect of substantially higher precious metals prices in the months and years ahead. Why this lack of confidence by almost every analyst when the messy ‘political process’ virtually guarantees such increases?

By Arnaldo Paulini.

Implications of short term pandering to voters almost always runs counter to sound public policy. Moreover, as desperation mounts more unfunded spending, deficits and debt, money creation and creative new ways to bribe the voter become the norm. The escalating price of gold is the inevitable consequence.

The political process outlined above is why we are facing mounting economic and financial problems. Imperatives of the electoral process cause politically expedient decision making to go into overdrive resulting in a feverish succession of costly and doomed initiatives. Real money is the safe haven destination to its consequences. Precious metals prices can be expected to gain serious momentum and reach unheard of price levels in this environment.

Where is the Ultimate Gold Price Destination?

Clearly no one knows. However, the magnitude of the financial crisis caused by government deficits and debt, coupled with and the complexity and scale of financial products, virtually guarantees that real money, i.e. gold, will skyrocket to unimagined levels.

The owners of most of the world’s gold are the central banks and governments starting with the United States, Germany, France, International Monetary Fund, and Italy along with countries like China and India, including a succession of third tier nations, currently buying as if there was little time remaining to stock up. These institutions effectively place a floor under gold prices. Their readiness to buy removes much of the risk. Price consolidation/corrections {like the current one) will occur but they will be relatively shallow and brief.

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Precious metals should rank at the top of your investment “to buy” list. While prices cannot be predicted with precision they will go dramatically higher as confidence in paper money deteriorates.

Gold bugs have their politicians and their messy political process to thank for this inevitable event!

The article above is presented courtesy of Lorimer Wilson, editor of (Your Key to Making Money!), and has 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. This paragraph must be included in any article re-posting to avoid copyright infringement.

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1. Washington Politicians Will Cause Rampant Inflation With Their In-Action and Mis-Action!

The National Inflation Association (NIA) believes it is very unlikely that our representatives in Washington will have the political backbone and courage to implement any of the National Commission on Fiscal Responsibility and Reform’s proposed cuts in domestic and defense expenditures and increases in tax revenues. [Instead, as the NIA sees it,] the U.S. is on a path towards exploding budget deficits in the years ahead that could cause an outbreak of hyperinflation by the end of calendar year 2015. Words: 887 Read More »

One comment

  1. What if uncle Sam outlaws ownership of gold if the metal jumps too high