It is very difficult to see any factor that could stop a continued very strong rise of the physical gold price…[due to] two main drivers…[as mentioned below. Let me explain.] Words: 444
So says Egon von Greyerz (www.goldswitzerland.com) in edited excerpts from his post* under the title Greyerz – Two Absolutely Incredible & Key Gold Charts. (I have been advised that the inclusion of the 2 charts mentioned in the original article must not be included here, as was done in the original posting which has since been deleted, because such would be considered copyright infringement, so please click the link above for access to the 2 charts.
Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.
Greyerz goes on to say, in part:
1. Central Banks worldwide are refusing to have public audits of their gold holdings. In addition, many of the Central Banks don’t hold their gold in their home country… [but, instead,] in London or New York…[because] the gold has either been sold or leased to the bullion banks in order to depress the price. (I have been saying for years that Western Governments are unlikely to hold anywhere near the 23,000 tons that they officially hold.)
There is now more pressure in many countries for a full audit of gold holdings. Once the market realises that central banks don’t hold the gold they officially declare, there will be a total mistrust in the system. At that point very few will trust paper gold or even gold within the banking system which could be encumbered and owned by a central bank. This will have major upward pressure on the gold price.
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The…balance sheet of the Fed and the balance sheets of all of the central banks in the world compared to the gold price…must continue to expand because without that we will have a total collapse of the financial system. Bernanke knows that, and all of the central bank leaders know that, so that will continue and…borrowings will continue, balance sheets will expand and the gold price will just continue to reflect that. This is without the market reacting to the fact that there probably isn’t anywhere near the central bank gold (governments claim they possess).
2. Government deficits spending and borrowings will continue to grow dramatically, worldwide, in the next few years. No government can or will introduce austerity measures because:
- any party suggesting austerity will be thrown out and
- the problem is now so big that an austerity program would have zero effect.
The… U.S. public debt to gold price (starting) from 1900…has started to go exponential. Both…government borrowings in the USA and worldwide have now entered a parabolic phase…The gold price is closely following the growth of debt so as the deficits accelerate in the next few years, so will the physical gold price.
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In conclusion, it is very difficult to see any factor that could stop a continued very strong rise of the physical gold price.
Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
It’s that time of the year again where we examine how gold and silver have performed against 75 fiat currencies around the globe.
The closing of the gold window back in August 1971 has led governments worldwide to create endless amounts of worthless paper money and the resulting credit bubble has created a world debt exposure of over US$ 1 quadrillion (including derivatives). It has also created perceived wealth for big parts of the world’s population – a wealth which is only backed by promises to pay and by grossly inflated assets. Few people realise that this wealth is totally illusory and will implode considerably faster than the time it took to create it. [Let me explain.] Words: 890
Gold prices have been trending higher in the last twelve years and might continue to do so over the next decade. This article is in defense of current gold prices from a money creation perspective. Further, this article completely rules out a bubble in gold. Hence, the expectation is that the long-term bull market for gold is intact and gold will surge higher over the next decade. Words: 914
…Gold is about to undergo a profit-taking event…as a result of the USD beginning a rally, probably beginning today. I’m looking for the dollar index to test the downward sloping 200 day moving average [see chart below] before rolling over and continuing the secular trend. This should drive gold down into a final intermediate degree bottom around $1694 or so before testing the all-time highs at or slightly above $1900 sometime before the end of the year. [Let me explain why that is most likely going to happen.] Words: 401