Gold and silver continued to be monkey hammered as central bankers act in unison with the bullion banks to pull up the stock markets and suppress the price of gold and silver.
But this is not new. Gold price has been suppressed over the years when it reached its peak at US$1,900 per oz. But the recent gain in gold and silver prices shows that the suppressors are losing control just as gold and silver shorts are at record highs.
Why the suppression of gold and silver prices? To allow both these precious metals price to skyrocket is an admission by the central bankers that their monetary policies have failed. And failed they did. The purchasing power of the US$ has declined 97% since 1913!
Global economy cannot rely solely on debt for growth. It is akin to suppressing the future growth in order to enjoy the present growth. And that is why future generation will face a rather bleak economy. The current generation misery is the result of the debt accumulated from the actions of the previous generation. With so much debt at hand, the future is even worse for the next generation.
The only asset that has withstood the ups and downs of the world economy for the past few thousand years is gold. That is why it is wise to have some of your holdings in physical form rather than in paper form. The other opportunity is to profit form the exposure in the miners. Only then could you protect and create wealth.
From where we stand events will be unfolding in the coming months and these are the things to look out for.
EU banking and debt crisis will worsen as Die Welt reports, the total exposure of French banks to Italian debt exceeds €250 billion. That’s triple the amount of exposure of the second most exposed European nation, Germany, whose banks hold €83.2 billion worth of Italian bonds. Deutsche bank alone has over €11.76 billion worth of Italian bonds on its books. The other banking sectors most at risk of contagion are Spain (€44.6 billion), the U.S. (€42.3 billion) the UK (€29.77 billion) and Japan (€27.6 billion). Source: Zerohedge. US presidential Election which could end up in a crisis as Trump gains in support but the Establishment refuses to bend to the will of the people. If Trump wins, his drive to make America great again will come with a US$ devaluation due to huge monetary and fiscal stimulus. If Hillary wins, there could be turmoil as the masses may create chaos in the belief that they have been cheated of their votes. Hillary will keep the status core - more money printing - and maybe start a few wars which could push the investors to safe assets such gold and silver.
The world reacted by pushing the S&P to record highs as Japan unveils another massive stimulus of US$98B. This is nothing new. Japan has been unveiling stimulus after stimulus since their deflation spiral began in 1990. Remember Abe's Three Arrows? Japan has remained in deflation and this new stimulus will be no different form the previous. One economist joked that Japan's stimulus has more sequels than the Police Academy movies.
Which is precisely that. The global financial system has become a sick joke as central bankers kill the price discovery of a free market economy.
The above is just my opinion.
But this is not new. Gold price has been suppressed over the years when it reached its peak at US$1,900 per oz. But the recent gain in gold and silver prices shows that the suppressors are losing control just as gold and silver shorts are at record highs.
Why the suppression of gold and silver prices? To allow both these precious metals price to skyrocket is an admission by the central bankers that their monetary policies have failed. And failed they did. The purchasing power of the US$ has declined 97% since 1913!
Global economy cannot rely solely on debt for growth. It is akin to suppressing the future growth in order to enjoy the present growth. And that is why future generation will face a rather bleak economy. The current generation misery is the result of the debt accumulated from the actions of the previous generation. With so much debt at hand, the future is even worse for the next generation.
The only asset that has withstood the ups and downs of the world economy for the past few thousand years is gold. That is why it is wise to have some of your holdings in physical form rather than in paper form. The other opportunity is to profit form the exposure in the miners. Only then could you protect and create wealth.
From where we stand events will be unfolding in the coming months and these are the things to look out for.
EU banking and debt crisis will worsen as Die Welt reports, the total exposure of French banks to Italian debt exceeds €250 billion. That’s triple the amount of exposure of the second most exposed European nation, Germany, whose banks hold €83.2 billion worth of Italian bonds. Deutsche bank alone has over €11.76 billion worth of Italian bonds on its books. The other banking sectors most at risk of contagion are Spain (€44.6 billion), the U.S. (€42.3 billion) the UK (€29.77 billion) and Japan (€27.6 billion). Source: Zerohedge. US presidential Election which could end up in a crisis as Trump gains in support but the Establishment refuses to bend to the will of the people. If Trump wins, his drive to make America great again will come with a US$ devaluation due to huge monetary and fiscal stimulus. If Hillary wins, there could be turmoil as the masses may create chaos in the belief that they have been cheated of their votes. Hillary will keep the status core - more money printing - and maybe start a few wars which could push the investors to safe assets such gold and silver.
The world reacted by pushing the S&P to record highs as Japan unveils another massive stimulus of US$98B. This is nothing new. Japan has been unveiling stimulus after stimulus since their deflation spiral began in 1990. Remember Abe's Three Arrows? Japan has remained in deflation and this new stimulus will be no different form the previous. One economist joked that Japan's stimulus has more sequels than the Police Academy movies.
Which is precisely that. The global financial system has become a sick joke as central bankers kill the price discovery of a free market economy.
The above is just my opinion.
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