munKNEE.com Your Key to Making Money
…It’s a confusing world out there. Some say gold is going to $700 (and
they might be right, temporarily), and others say gold will shoot to $10,000 (and they might be right, temporarily). I’m in the middle and, when I tell you why, I hope you see the wisdom of why you should join me there, too.
The above comments, and those below, have been edited by Lorimer Wilson, editor of munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (see sample here) for the sake of clarity ([ ]) and brevity (…) to provide a fast and easy read. The contents of this post have been excerpted from an article* by Jeff D. Opdyke (sovereignsociety.com) as posted on Gold-Eagle.com under the title The Next Gold Rush and which can be read in its unabridged format HERE. (This paragraph must be included in any article re-posting to avoid copyright infringement.)
The world is not in a good way
Seven years on from the worst financial calamity since the Great Depression and not a helluva lot has really changed for the better.
- The world’s most important countries are deeper in debt.
- The world’s most important consumer populations are deeper in debt.
- The too-big-to-fail banks are bigger, so we know that moral hazard is now bigger since governments can never let those banks fail.
- The world’s politicians…have done little to improve the lot of the common man or manage well the treasuries those politicians control.
- Instead of prescribing a financial enema to allow the world economy to purge its collected refuse, global central bankers have been stuffing the world economy with sweets and high-calorie junk food (quantitative easing and other such monetary gerrymanders) in order to induce a sugar high to make us all think life really is better than it was back in 2008.
Is life really better than it was back in 2008. Of course not! It’s a good bit riskier than it was back then, which is why physical gold is such a necessary component of any collection of financial assets. [As I see it] a reckoning is coming. It has to.
A crisis is the only catharsis to a world addled by excessive debts at every level of society. The pain will surpass 2008. The problem, however, isn’t leading the horse to water or getting him to drink – it’s getting the horse to recognize he’s thirsty in the first place.
Gold Is More Than an Investment
Buying gold for its investment merits is like buying a car because it’s a great place to listen to music.
Cars are not useful because they play music, and gold is not useful because it’s an investment. Gold is useful because it’s governmental insurance.
Government…[has] built up too much debt in the world. That debt, in turn, impacts the ability of central bankers…to do their jobs properly. They’re left to manipulate monetary policy and markets in order to save the world from what politicians have created.
This won’t go on forever. At some point, a crisis must happen to relieve the pressures that have built up and, in every crisis throughout history, gold has played a role and it has risen in value to protect purchasing power. It will do so again.
Even a 21st century financial system is not so different that gold’s role as currency insurance of last resort will be diminished. In the right moment — in a debt-fueled currency crisis — gold will shine just as brightly as it always has in moments of total global chaos. That’s the path we’re on – and there are no exit ramps.
You can buy gold now at cheap prices and prepare for the future, or you can decide gold is dead and even then you’re still preparing for the future — just in the wrong way.
The race doesn’t always go to the swiftest but to the surest of foot. [Buy gold – now!]
*http://www.gold-eagle.com/article/next-gold-rush
Related Articles from the munKNEE Vault:
1. Is There A Correlation Between Gold’s Price & U.S. Public Debt?
Is there a one-to-one positive correlation between the price of gold and the U.S. public debt? Yes and no. Let me explain.
2. Does gold really serve as an inflation hedge?
The traditional motive behind investing in gold is as a hedge against inflation but the hedge properties of gold are increasingly questioned. In fact, its role as an inflation hedge is perhaps the most debated and ambiguous issue in the financial press and academic literature. This article analyzes all the research and puts forth a convincing conclusion.
3. Gold’s Price Is Mostly Affected By These Macroeconomic Factors
For relevant analysis of gold prices, the so-called “fundamentals” provide scant help. What is required is an understanding of the macroeconomic drivers at play. This article addresses 9 such factors.
4. Gold – Is It A Commodity, A Currency, Neither or Both?
To answer the question “what drives the prices of gold” we have to determine the nature of gold. Is it a commodity, a currency, neither or both? This article does just that. Read on.
5. Noonan: Why Buy Gold & Silver? Here’s Why
Here’s the best reason to buy and hold gold and silver, at any price, and especially at these artificially suppressed prices.
6. Is gold a good portfolio diversifier?
While the correlation between bonds and stocks tends to increase during economic turmoil, gold usually becomes negatively correlated with other asset classes in such times. This means that the diversification benefits of gold are maintained and may even increase in during severe crises. Let me explain further and provide some caveats.
7. Own Gold As An Insurance Policy On Your Investment Portfolio – Here’s Why
We are content to pay for house insurance for most of our lives yet very few of us have actually experienced a fire or a major disaster where we had to use the insurance. We are comfortable with paying the premiums every year in order to avoid a catastrophic loss. Well, owning gold is tantamount to owning an insurance policy on your investment portfolio.
8. Protect Your Portfolio By Including 15% Gold Bullion – Here’s Why
Only about 2% of ‘investors’ actually have gold in their portfolios and those that have done so have insufficient quantities to offset the future impact of inflation and to maximize their portfolio returns. New research, however, has determined a specific percentage to accomplish such objectives. Words: 1063
9. Gold & Silver, Not Cash, Are the Ultimate Risk-free Investment Class – Here’s Why
Instead of gold, people commonly think of paper money as the only medium of exchange and as a store of value; cash is after all their unit of account. They see the gold price rising when they should be seeing the value of paper money falling.
10. What Is Gold’s Role In An Investment Portfolio – If Any?
There is a plethora of information available in all sorts of media that is negative about gold – gold is risky, volatile, a barbarous relic, and so on – but these arguments miss the point entirely, because they treat gold as an investment. To fully understand gold’s role in an investment portfolio, we need a new mindset—a gold mindset – [and HERE it is].
If you desire to get a good deal from this post then you have to apply such strategies
to your won weblog.