Gary Christenson | Jan 27, 2015 10:46AM ET
(price changes based on US Dollars.)
Governments, confidence, and prices rise and fall. The current collapse in Gold prices from August 2011 to November 2014 has been typical for a once-per-decade gold price decline.
What changed? Let’s look at the usual suspect:
but:
There is more that will explain the rally in gold prices. By the way, gold is close to all-time highs in several other currencies, even though it is not in US-dollar terms.
Weakening confidence in currencies, central banks, and governments will focus attention upon real money, the money that has survived for thousands of years BEFORE AND AFTER the era of central bank promises, lies, manipulations, and monetary stimulation. Gold is making a determined come-back in financial markets because it is more real than paper fiat currencies backed only by the faith, credit, and the lies of insolvent central banks and sovereign governments.
Gold is approximately $150 higher than its early November low and still long-term UNDERVALUED. Paper promises, paper currencies, and official pronouncements from central banks and governments are looking less real, more vulnerable, and likely to weaken further in 2015 and 2016.
To paraphrase Churchill, central banks will (we hope) do the right thing (back their currencies with gold) after they have exhausted all other alternatives. How much collateral damage will occur in the meantime, and what can you do for self-protection?
GO FOR THE GOLD (and Silver)! It has withstood the test of time, history, the ravages of paper money, and central bank lies.
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