Gold has taken a beating in the last year or so. Why? That’s the big question on everyone’s minds of late. The second question is “Will the price of Gold or Silver break out of the doldrums before summer arrives?
According to most analysts, Gold may drop up 14% and some even predict a 50% drop in 2014. With this in mind, if someone were to tell you to invest in Gold you would have to shake your head and wonder where the men in white coats are because this man is obviously a lunatic. Well you are reading an article written by that lunatic!
Why do you go against the big names who say Gold will drop like a rock?
Here are the Gold Doomsayers:
Bank of America $1,150 Down 18.6%
Barclays $1.205 Down 14.7%
Deutsche Bank $1,141 Down 19.2%
HSBC $1,292 Down 8.6%
J.P. Morgan $1,263 Down 10.6%
UBS $1,200 Down 14.5%
Against them is one of many who sees the handwriting on the wall. Who?
Me! I cite 5 Reasons that that might start you thinking crazy as well.
Reason #1 Russia’s sudden thrust into Crimea that everyone is virtually ignoring. Why?
For whatever reason is given, The Russian needs an open water port. It now has one by taking Crimea it can now extend its influence into the Middle East and The Mediterranean. This changes the balance of power. Russian used to outnumber the US in Submarines and Naval Combatants. When the Ukraine broke away Russia lost a 400 ship navy and access to its main warm water port. The US current reaction is sanctions. Which have no real value as EU and Asian depend on Russian oil.
Reason #2 China’s push into the South China Sea. Why?
China sees acquisition of the South China Sea as restitution for the 100 years of shame foisted on it by Western nations and the indignities forced on them by the Japanese in WWII. The Chinese have very long memories and they are doing exactly what they have said they are going to do. Most people cannot read Chinese so they don’t see the current feeling that are portrayed in the media. Many nations are currying Beijing’s favor due to Soft power. (MONEY) No real reaction from Washington. Read our lastest article about China and Russia deal, called the “Agreement on Cooperation”
Reason #3 Syria unrest
The first use of nerve agents to have been used since the Iran Iraq War was used on a city. It doesn’t matter who started it. It is a foretaste of what’s to come. More governments will change hands and the West is seemly helpless to affect the outcome. The one US diplomat who was knowledgeable about the situation in the Middle East dies in Benghazi. Can Saudi Arabia be far behind?
The US has washed their hands of the whole mess and let Russia take the lead in Syria.
Reason #4 Thai Military Coup
You might think a Thai coup is nothing new. But, following in the wake of Syria and Russia events it is a natural progression of events has The US is losing its leadership position under assault by both China and Russia. Normally US diplomats have a high degree of influence on the Thai military as we need their support as much of our supplies flow through Thailand to Afghanistan and they are a key player in Obama’s Asian pivot strategy. There is no mention of a solution, much less a reaction.
The American Auto Industry is about to take a nosedive and with it so follows the same for the rest of the world who build and drive cars? Have you heard of the Tesla? Right now, it costs $133,000 dollars to buy a fully equipped one. Ouch! It’s no threat to big oil or the car manufacturers in the world right? Well in a short time, the dynamics of the entire world will shift drastically as the secret backer of JB Strubel’s Tesla Motors propels Project Blue star into the limelight and the Massive Gigafactory goes online. If you think it is far fetched, you only have to look at China where Gigafactories are a reality. Where do you think Apple’s products come from?
When the price of the Tesla drops to $30,000 dollars, the Petrodollar will be a thing of the past.
The net result is for an already weakened dollar. 20+ nations are already working to switch away from the dollar as the world reserve currency even as you read this article. Russia and China both have vowed to replace the dollar to remove the U.S.’s influence on the world economy.
The result of all of this weakening of the dollar is in favor of Gold. That is why I am going with Gold going up in the middle of this year as Global tensions increase and both Russian and China start putting more pressure on Obama and the dollar.
Silver and Gold will find their prospects for future growth are increasing as more of these types of events occur in the next few months. We will look at the different ways that these events will affect your use precious metals in your current portfolios and why perhaps you may wish to convert to a Gold only type of investment instrument. We will also look at Gold and Silver futures in the Market at a later time. “Watch the world more and the bankers less,” says the Monk from his mountaintop.
Are you interested in preserving (and increasing your wealth)? Each new dollar that is spit out at the printing press makes the dollar you hold in your pocket worth less. Have you noticed the price of food and other goods? Mike Maloney’s definition of inflation is, “an expansion of the currency supply…Rising prices are not inflation, but the symptom of inflation.”This book is a real eye opener as far as who is in control of the money in this country. You need to read this…