The real risk right now is an all-out 1930s-style currency war. And once a good old-fashioned currency war gets underway in earnest, the winners – if you can call them that – will be those who have the wherewithal to withstand the deepest drop.
The easy trade since the middle of last year has been to buy dividend-paying stocks. So, what do investors do now? How can you maximise your stock market returns after shares have already gone up?
We bet you thought you were saving to fund your retirement so you don’t have to live off tinned hotdogs and two-minute noodles. But what’s really happening is that the government needs your retirement money so it can fund its wasteful and excessive spending.
Yes, people trade ‘paper silver’. But real silver — the kind you put into 22-pound bags — is scarce. It’s scarce enough, at least, for one of the largest German automakers to store its silver in a Swiss vault, next to the pope’s gold.
Japan is trashing their currency to incite inflation and if they succeed they just might bring about their own downfall. And not to be outdone, the US Fed is playing catch up.
Perhaps a new Cold War will emerge between the U.S. and its allies against China and its allies. Pushed by abstract ideals and “strategy,” will the world powers fumble along a path to war? And what would a new cold war mean for investors?
Gold stocks have been serial underperformers, falling two years running – even as gold bullion rose. But it is precisely when investors turn their back on something that you get the best prices. And this is when the bargain hunters ‘back up the truck’.
Countries like Japan, Korea, Taiwan, or Singapore are energy and storage-constrained, yet have high per capita energy use. For them, uranium is vital. In case of crisis, uranium is the most strategic energy source on the planet.
The real beneficiary of the collapsing time value of money is ‘stuff’. Commodities are the financial equivalent to ‘stuff’. However, commodities are a difficult area for private investors.
The gold price is on its way up for a number of reasons. Which is why now is the best time to buy gold before the price surges again.