Gold no longer has a legal role in the world’s monetary system, but because of a collapse of faith in sovereign obligations and a coming complete lack of trust in governments and financial institutions, gold is going to quickly become a core banking asset.
The new trading week was off to a rocky start in precious metals as, despite only a relatively small, 0.20% advance in US dollar (to just above 83.80 on the index) the complex headed for lower price ground overnight and at the opening bell in New York.
The new trading week started off on a downbeat note in commodities, equities, and a crisis-beset currency across the Atlantic. Risk assets headed lower on a combination of anxieties surrounding global economic expansion, and persistent systemic troubles in the euro zone and China.
I am of the opinion that we are in a gigantic structural bear market. The role of any bear market is to get the most people to lose the most wealth. And so our first goal is to help you be among those who lose the least.
Commodities have a long and storied history of boom/bust/boom, with supply and demand alternately racing past each other as the lag times for developing new supply assure too much at some point and too little at others.
The precious metals expert and founder and chairman of GoldMoney explore in an interview the probable outcome of the current US debt-ceiling operatics, the likelihood of future Fed money printing and strategies for preserving wealth.
Gold is one investment that you can park for the next 10 or 20 years. The punch line is this: gold and silver are not in bubble territory, and large gains remain, especially if monetary, fiscal, and fundamental supply-and-demand trends remain in play.