Saturday, March 12, 2016
Will Gold ever hit $2000 Again? If so, when?
Will gold hit $2000 again?
Yes, Definitively yes. The answer is so obvious it's all but a sure thing.
The fact is inflation is still rampant for the Household Sector.
Deflation is taking hold in the Fincancial Center - But that's a seperate issue.
For the Household Sector - which is the vast middle class, the value of money is being destroyed.
Don't look at the CPI. It measures nothing relevant.
The American Institue of Economic Research publishes the Everyday Price Index growing at over 8 percent year over year
Shadow Stats Alternate CPI using 1980's methodology shows prices growing year over year at over 10 percent .
And an index of the 500 most purchased items in the 50 largest cities in the US shows inflation growing at over 12 percent year over year. This index includes everything we spend on: insurance, education, heat, rent, food, energy, (IE everything the Government excludes in their absurd CPI figures).
Meanwhile rates are still near ZERO and that's exactly what you get when you loan your money to the bank.
The Banks take that money and use it to buy risk assets through speculative funds - like real estate, for example, in New York - pushing up home prices and rents higher and higher.
So you lose 10 percent per year on the future value of your money. The Banks gain 10 percent per year on the future value of your money and they use it to push prices higher so they profit again, as you suffer again when you rent or buy.
This is the whole reason the middle class is drowning. And it it the whole reason that GOLD - and every other private asset - Art, Numismatics, Antiques, Antiquities, Cars, Memorabilia etc are all going to go much much higher.
Because the value of money is being destroyed for the Household Sector - which is the vast middle class.
So everything of intrinsic value that can be purchased with deteriorating money must soar in value.
And as Public Financial Assets lose value especially in the the Vast Bond Universe which is in perhaps the biggest bubble the world has ever seen (this is the very real Financial Deflation you hear so much about) - the wealthy are already piling into private assets.
But soon even the middle class will follow as they lose confidence in the failing Institutions. And when that happens Gold and all other private assets will soar.
When? When will the middle class wake up and understand the source of their misery is not in immigrants or Isis or Mexicans or welfare recipients - but in the Monolithic Banking Sector?
When will it occur to the middle class that the Banking Sector - whose job it is to EFFICIENTLY ALLOCATE CAPITAL - has transformed itself into a monster that SUCKS CAPITAL OUT OF THE ECONOMY?
Timing is impossible. Anyone who claims to be able to time these things is an abject liar. Check their records. They make a new call every three months. When it finally comes true they forget their 50 wrong calls.
But, judging from the fact that Donald Trump will be our next president, I'd say the anger is already there. It's just a matter of locating the cause. And that will come