Whether this month’s rise is the beginning of gold’s long-awaited ascent is unknown. What is known is that gold has broken out of a protracted trading range, that supplies of physical gold and silver are increasingly tight, that the willingness to sell is diminishing and that macro-economic factors (more Fed bond-buying, rising food and fuel costs, falling global demand) will all contribute to gold’s explosive rise when it does happen.
In inflation-adjusted dollars, today’s equivalent of 1980’s then-record price of gold, $850, is $2,466. But when gold does make its explosive ascent, it will easily surpass that number. This time, the Fed won’t be able to raise interest rates to draconian levels to bring inflation expectations back into line.
Schoon is unsure how high gold will now go, especially when valued in inflationary and/or hyperinflationary US dollars. In 2007, he predicted that the coming collapse would be even more catastrophic than the Great Depression. That in addition to a deflationary collapse in demand, there would be a concurrent global currency crisis that would end with paper currencies being worth far less than today’s perceived value.
That process has begun. Today’s unraveling of the euro is but the first step in the global monetary rendering. The collapse of the bankers’ paper currencies is in motion and although the collapse started with the euro, it will end with the dollar; and when the dollar collapses, the bankers’ global house of credit and debt will collapse as well.
Economists expected an economic rebound in the 2nd half of 2012. That unfounded expectation reflects just how wrong economists continue to be about the ongoing economic crisis. We are witness to the collapse of a 300 year-old economic paradigm, and because most economists cannot imagine it happening will in no way prevent it from occurring.
The crisis has begun. Buy gold, buy silver, have faith
To read Darryl Robert Schoon article: Gold’s Coming Rise
BullionBuzz is a weekly eNewsletter that offers investors a quick snapshot of must-read news pertaining to the markets and precious metals. Continue reading
BullionBuzz is a weekly eNewsletter that offers investors a quick snapshot of must-read news pertaining to the markets and precious metals. This week: Euro: Current Course Is Leading to Disaster Continue reading
It’s a black or white issue: Either you own uncompromised bullion bars for which you have title documentation that are stored in secure allocated storage, or you have an unallocated account that can be settled in cash at the issuer’s discretion. Continue reading