Wednesday
Now, back to Gold…
Only by truly understanding the nature of the process in motion can one even begin to understand the future trajectory of that motion.
IT IS NOT the price of Gold* rising; IT IS THE PRICE OF CURRENCIES DROPPING. Yes, you are encouraged to think of everything as being priced in dollars. While that is useful in most day-to-day circumstances, it is misleading** when talking about Gold.
However, this misunderstanding does have ramifications in the trading of currencies. Yes, the currencies are collapsing, but some currencies will collapse before others. The US$, contrary to most reports, will be the last to collapse. So, if the ‘price of Gold’ (POG) falls in US$ terms, that should not mean necessarily that it will also fall in other currencies. Currencies are moving in lockstep at the moment.
That will change. It will begin at the periphery in countries such as African nations, Indonesia and Thailand etc. When the peripheral currencies begin to fail, it will quickly spread to all currencies. During the process, the US$ will likely rise in value against all other currencies – possibly considerably. Eventually, it too will fail, but long after the others have disappeared into the dustbin of history.
I am NOT a financial advisor; I am a cranky old opinionated codger. But I am as sure as I can be that if you do not have at least a good portion of your wealth in Gold/silver and are relatively debt-free, then you are heading for big trouble.
I have been prattling on about this for almost 26 years now. Time is now running out.
- I find it necessary to (again) point out why I capitalise Gold. It is because the rules of the English language demand it. Proper nouns are capitalised.
A proper noun refers to a specific person, place, thing or idea. Specific means belonging or relating uniquely to a particular subject. So, if you believe that Gold relates uniquely to the subject of money, Gold is capitalised. If you don’t believe that then you don’t capitalise it – the same as you don’t capitalise Wednesday if you don’t believe that it is a specific day of the week in between Tuesday and Thursday.
** Using currencies to measure value is also misleading when talking about the price of real estate, which has been falling in value for decades. Most people mistook the greater number of dollars required to buy a house as evidence that the value of the property was rising. No – it was the value of the currencies falling. In real money, real estate peaked in Australia in December 2004.