…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!]
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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].