Owning Gold: Beyond the Basics; Seeing the Future

 

Conviction in any market is a key to making money.  Because in the short term anything can happen.  Martkets can be irrational.  Because people are irrational, emotional, psychologically bizarre animals.

So seeing the future clearly can help navigate the vagaries of our fellow animals.

Seeing the Future leads to Conviction.

It's easier than it sounds,  All you have to do is ignore what everyone else is saying, tweeting, posting, writing, lecturing, expounding.  You need to use your own brain.  And look at the things that are most obvious.

1) All governments are being run on deep deep deficit spending, facilitated by negative real rates, and have been doing so for decades.  Because of the Interest on the Accumulated Debt, the deficits must grow exponentially.   

This is excellent for gold (and all hard assets of intrinsic value) and very poor for everything else - in the long run.

2) Most  Coroporations have been running on the same principles.  They have been financing irresponsibly for decades because real rates have been deeply negative.   Often money has been available at O percent.  This has led to a debt soaked coroporate - and banking - structure that can not survive higher rates for long.  And as the debt grows, inflation grows, and rates eventually rise.

This is terrible for the gobal economy and great for gold and hard assets - in the long run.

3) Negative Real rates have caused a massive inequality of wealth.  This has led to tremendous resentment and anger in the mass of the world's populations.  Most people don't know they are angry because of Negative Real Rates - also referred to as Financial Repression.  That's hard to understand.  So they blame the OTHER.  Immigrants.  Jews.  Elites.  The Woke.  The Establishment.  The Deep State,  Blacks.  Browns.  Whites. Colonialism.  The Patriarchy.  Any stupid catch phrase that obviates the need to think and helps provide an outlet for rage.

This blame leads to the embrace of Strong Men Leaders - Fascists - on the left and the right who promise to Punish the Guilty, and redress wrongs.

This is terrible for solving problems and leads to greater and greater instability.

This is bad for the global economy and great for Gold.

4) Realizing all this the question becomes not whether to accumulate Gold and Hard Assets but how to do so.   There are many ways.  They need researching and careful consideration.  But most of all they need conviciton.