Everyone believes the gold market has reversed direction. The bull market of the last 14 years has finally ended. It’s all downhill from here, they say.
No central banker would ever willingly choose to go back on a gold standard. But in a scenario where there’s a total loss in confidence, they’ll likely have to go back to a gold standard.
When it comes to gold, gold in the ground, and gold mining, there’s no question that Australia is a superpower.
Gold is hard to find and hard to bring up out of the earth. As a result, its quantity is always limited — by nature herself.
When this trigger is pulled and the gold panic starts, it’ll run out of control very quickly. Gold prices will soar to heights no one thought possible just a short time ago.
Since 2000, gold has greatly outperformed every other asset you can think of. So in that sense, gold performs an important insurance function.
Jim Rickards plays gold basher advocate and tries to think of some ways to make a case against gold. Enjoy…
Most don’t know John Paulson made $5 billion more betting on gold in 2010 — and now he’s got another $1.2 billion gold bet in place.
Right now, gold is behaving more like money than a commodity or investment. It is competing with central bank fiat money for asset allocations by global investors.
Few others in the world know gold like economist, intelligence expert and author Jim Rickards.