Gold Investment Fundamentals and the Transfer of Capital
The Secular Bull Market in Gold Investments corresponds directly to the Secular Bear Market in Financials. We explain why this trend will continue and why a short-term buying opportunity in Gold presents itself.
Central Banks are in all sorts of a pickle.
With overwhelming evidence that the global economy is slumping badly:
* UK Retail Sales see Worst Slump in 20 Years
* Business confidence in Germany is at lowest level in 2 years
* New Zealand’s central bank cutting interest rates saying slowing economic growth will curb inflation.
* Japanese exports decreasing YoY, and imports climbing on record Oil prices.
* US unemployment at 4-year highs
The knee jerk reaction by central banks is to man the printing presses and hit the accelerator. And whilst this medicine has worked well over the last 25 years, Central Banks are now hitting a brick wall that they havent encountered since pre-Keynesian 1930s.
Freshly minted fiat currency is falling into the hands of a crippled banking sector with little capital, ability or desire to carry out the multiplier effect and make loans to real people in the real economy. In a debt laden global economy with no reverse gear this headwind is possibly the biggest threat the Federal Reserve and its ilk aka the establishment have ever faced in carrying out monetary policy
Point #1 Gold investors are well aware of the risks inherent in the current financial system.
The beauty of capitalism and the associated free movement of capital is that smaller more focused entities aka Hedge
chris vermeulen is a trader and newsletter writer specializing in the price of gold stocks, gold etf, oil stocks, oil etf, silver stocks, junior mining and energy stocks listed in the us, canada and australia. please visit my website for more information. www.thegoldandoilguy.com
