Debt

We know with absolute certainty that governments will continue to oblige by destroying the economy, spending money they haven’t got, increasing deficits and debts and totally debasing currencies until they are worthless. For those reasons we are holding gold and sleeping well at night.

Very important changes will soon take place in markets with the 2007-9 crisis returning with a vengeance. The final phase up in US stocks could last a few weeks and most likely not more than 2 months. Thereafter a secular bear market will start that will be devastating for the world economy, the financial system and paper money. Wealth preservation is today more important than anytime in history.

The catalyst for the coming cataclysm in the world economy can come from anywhere, like Deutsche Bank, US junk bonds or Japan. Whatever the catalyst is, it will lead to panic in markets with confidence evaporating and fear setting in. Now is the time to prepare for this. It will soon be too late. Physical gold should be part of everyone’s wealth preservation strategy.

Having found a solid base, silver will be able to develop the third leg of its bullish rally.

At the beginning of last week, I was challenged with a wager on the gold price. The individual, who called me a “gold pumper”, wanted to bet $1 million on the gold price going below $1,000 before it reached the Maginot Line at $1,350.

Every end of May, Incrementum publishes one of the most comprehensive gold studies worldwide. The 2019 report’s leitmotif refers to the erosion of trust in politics, society, and the global monetary architecture.

The breakout in gold and silver that we have been patiently waiting for is now starting. The long term up move in the precious metals, which have been pausing since 2011, is now resuming. We can with confidence expect all the short term resistance levels to be broken. The first obstacle was the Gold Maginot Line at $1,350.

The Italian Parliament voted for a motion to create "mini-BOTs", i.e. ordinary Treasury bills of low unit amount, the level of a banknote, to be able to be used routinely. They would not offer interest and would have no maturity, which would assimilate them to traditional currencies.

Even with this consistent manipulation, gold still reveals the deceit and the mismanagement of the economy. No UK prime minister has told the British people, that their money has lost most of its value in real terms in this century.

A new theory is becoming increasingly successful in the United States, and it is starting to make people talk about it in Europe. Remember this name, you will hear it more and more: the Modern Monetary Theory (MMT).