The answer is Gold.

 

How do you crack a currency calamity?

The Corrections

Society is bursting with inefficiencies that should have been rooted out by recessions long ago. Today big government and big business share the same bed and insatiable addiction to money printing. It must be cured if we are to move into any genuine period of prosperity.

Safe and Sound

The world needs a financial system that preserves confidence again. Small business owners deserve a stable currency to accurately plan for the future. Instead in its place, a relentless flood of paper money offers no reliable medium of exchange. There is little security in dollars to preserve purchasing power or store value. The lack of currency confidence worldwide is increasing at an unsettling rate. Eventually the same politicians that bought elections and reelections with promises and easy money will admit paper money is not working as the basic component of the monetary system. Citizens will seek an alternative currency and many are already turning to gold. Gold, through the centuries has proven to be unmatched as a standard of measurement, a medium of exchange, and store of value. The more distressed conditions become, the more of people’s money governments will try and get their hands on. The rate at which money seeks gold as a less detectable form of capital preservation will continue to mount.

The Adversary

Our generation will finally begin to understand inflation is the enemy, a slayer of freedom and culture. It has a long history of taking away from former nations in prior inflationary advances. A collapse and depression is likely inevitable in order to reset the system and clear the economic vices of the past. When mutual funds collapse, small investor’s anger will fuel the masses. Even though failures in the banking and insurance industries are evident citizens are still unprepared. A massive reshuffling of fortunes is approaching. As the currency continues to break down, the number of people who decide to take delivery of commodities futures will escalate. Gold and silver will rise above the burn and monetary skeletons of the Keynesian romantics.

The Flood

The advances from investing in gold are representative of a hedge against inflation and deflation. The ultimate goal of owning will be to have trading power at the end of the currency calamity. Until a return to gold, fiat currency will be in crisis. The people with a board to surf the next wave will be those who survive the coming economic tsunami. As we have seen, stock prices can rise but the main trend of the stock market measured in gold will be down. A significantly higher price for gold will be the solution to wash out the sea of paper money.

The King

There will be a homecoming to a currency connected to gold. The visiting paper tigers go home loser and take rightful place and just value of zero. The world will realize the need to turn the clock back to what made it great. All things paper are flagging measured against gold. The shaky foundation is crumbling, and those that relied on paper, like pension funds are in sad shape. Assets like stocks and land continue to tumble when priced in gold. As more pieces of paper money are needed to buy each ounce of gold, its price will increase. In the 1980 gold bull market the price of gold rose dramatically from around $35 to $850. This gold bull market will go much higher, and $1,475 an ounce will have seemed a bargain. Targets between $3,000 and $5,000 could even prove to be too low, believe it or not.

~MV

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