Gold & Silver Off To The Races?
With only 1% of world financial assets invested in gold, very few so-called investment experts have any understanding of the yellow metal. So during the 22-month correction in the gold price, most of the 99% who don’t own gold have all been calling for the end of the bull market….
What most of these people don’t understand is that gold is not in a bull market. It is paper money going down, rather than gold going up. For 5,000 years gold has been the only money which has maintained its purchasing power. Every single currency has been destroyed throughout history, in a permanent bear market. Voltaire was so right when he said in 1729 that “paper money eventually returns to its intrinsic value – ZERO.”
We have just started the acceleration phase of the upmove in gold (and silver). Gold is up $20 today, to almost $1,400 and silver up $0.65 to $23.75. But this is just the first phase of a continued collapse of paper money until most currencies reach ZERO. It is not likely to take that many years.
So gold and silver will continue to be the mirror image of falling currencies by very quickly reaching new highs. In the next 12-15 months, gold could reach $2,500 and silver $70. But that is still only the beginning, and we should reach my very longstanding forecast of in excess of $10,000 for gold and $500 for silver. And those targets are with “normal inflation.” With hyperinflation, which I expect, we might have to add a few zeroes to the targets.
With so many superb “freethinkers” that Eric King interviews, KWN followers have been forewarned about these events. As I discuss with Eric in this weekend’s audio interview, QE will not end in the US. The world is still in a total mess economically and financially and none of the problems that almost caused a collapse in 2008 have been resolved.
For a very long time we have seen manipulation by governments in the precious metals markets. The manipulation we saw earlier this year was absolutely extraordinary. This was extremely well covered by KWN in interviews with Andrew Maguire and others. Manipulations of markets can last a long time, but eventually they will end. The truth always wins in the long run and the laws of supply and demand come into effect again.
The smashing of gold and silver in the paper market has, in my view, come to an end. The physical market will now take over as the only true market. Paper longs will take delivery and paper shorts will panic. This will not happen overnight, but gradually, over time. There will be periods with very high volatility, with gold going up hundreds of dollars in one day and silver tens of dollars a day. But corrections will also be violent, so investors must be careful.
So we now have a perfect synthesis of fundamental, physical and technical factors for gold and silver, which will be the beginning of a long and spectacular rise. But investors must remember that they should only own physical metals which must be stored in vaults outside the banking system.