Money

The exact level of the collapse in investment assets and surge of gold is of course impossible to forecast. What is virtually certain is that gold, relative to other assets, will increase substantially in value.

Venezuela’s central bank in April paid $172 million to U.S. bank Citigroup to recover part of the gold it had put up as guarantee in a swap operation.

We are now on the eve of an economic crisis of unfathomable proportions due to an insoluble debt problem. Holding precious metals will be invaluable insurance to survive this crisis financially.

Chindia & Silk Road gold consumption for March.

It can’t happen here! What is happening in Venezuela and Argentina cannot occur in Western economies. That’s at least what markets believe with stocks and most bubble assets remaining in cloud cuckoo land. Rates in Argentina have just gone to 40% to protect the currency. Anyone who believes that rates in the US will remain at current low levels or that German and Japanese rates will remain negative has a massive shock coming.

Strategic investments are made for the long run and with no intent of short term gains or concern of short term fluctuations. This kind of investing is based on buying undervalued and unloved assets and holding them for a very long term.

Gold in Venezuelan Bolivars moves up exponentially every week. The price has gone from VEF 200 to VEF 75 million in this century and that won’t be the end. We will see similar moves in all currencies in coming years including the Dollar, Euro, Pound, Yen etc.

A war with Iran would eliminate the largest non-USD oil exporter. One thing leads to another. The gold repatriations are a precursor to a currency war and armed conflict. That’s what drives US foreign policy.

The time to own physical gold and silver is today and not when they move to new highs. Both metals are at inflation adjusted historical lows and the downside risk is minimal. Also, they probably are the most undervalued of all assets currently.

A Bundesbank exhibit pays tribute to Germans' deep-seated love of the precious metal while honoring postwar economic prowess.