For extended periods reality can be smothered by the crowd’s perception of it. In the areas of money, two major misperceptions offer a speculative prediction.
The first misperception concerns those with unshakeable faith in the centrally planned system of paper debt notes. They have no awareness of honest money and regard the US$ as the premier investment vehicle. They have not even begun to realise the nature of the systemic and interconnected debt problem that affects the whole world. On that day when they do realise the problem, they will create a huge demand for the US$. Its value will soar – as measured by the only measure of value – Gold.
The second misperception concerns those who are also unaware of honest money, but are aware of Gold. These are the Gold bugs. They regard Gold as an investment and earnestly discuss the ‘price of Gold’; in other words, they measure its value using paper debt notes. These central bank propagandists are just about ‘all in’ and probably have been for some years now. They hope for Gold to go to ‘da moon’ and are oblivious as to what that would mean for the world around them should it happen.
At some point in the trajectory of our current slow-motion collapse, the first misperception will energise the ‘flight to safety’ factor – the race to buy US$s. The second misperception will then cause this to be viewed as a collapse in the ‘price of Gold’. The selling of Gold will then begin in earnest as the Gold bugs scramble to avoid losses – in paper. They will desperately dump their Gold (and silver) in a mad rush for US$s.
That demand will spike the US$ even higher. It will not last long, but toward the conclusion of that period of widespread Gold bug despair will be the time to take the reverse trade and sell paper for Gold.
The devotees of both misconceptions will eventually become forced closer to reality by circumstances too overwhelming to ignore. When that happens, those who have failed to understand that Gold is the only money because it is the only measure of value will pay a very high price. We all will, but there’s will be brought into sharp focus by the pile of worthless paper, which will sit in lieu of the Gold and/or silver that they once possessed.
Then the Gold and paper bugs will finally understand which is the measure and which the measured.