James Rickards, geopolitical and monetary expert and best selling author of the ‘The New Case for Gold’ considered today ‘the case against gold’ in best selling UK financial publication Money Week.
Rickards debunks the most commonly held arguments against gold including that gold does not have a yield, there is not being enough gold to support the monetary and financial system and that gold “cannot support the growth of world trade and commerce because it doesn’t grow fast enough.”
Rickards begins his article by recapping gold’s recent price history and why it appears undervalued now:
… I want to take a look at the case against gold. Starting from a low of about $250 per ounce in mid-1999, gold staged a spectacular rally of over 600%, to about $1,900 per ounce, by August 2011. Unfortunately, that rally looked increasingly unstable towards the end.
Gold was about $1,400 per ounce as late as January 2011. Almost $500 per ounce of the overall rally occurred in just the last seven months before the peak. That kind of hyperbolic growth is almost always unsustainable.
Sure enough, gold fell sharply from that peak to below $1,100 per ounce by July 2015. It still shows a gain of about 350% over 15 years. But gold’s lost nearly 40% over the past four years. Those who invested during the 2011 rally are underwater, and many have given up on gold in disgust. For long-time observers of gold markets, sentiment has been the worst they’ve ever seen.
Yet it’s in times of extreme bearish sentiment that outstanding investments can be found – if you know how and where to look.
There’s already been a change in the winds for gold so far this year.
James Rickards said recently that gold has the “chart of the decade” and made a strong case based on ‘maths’ and on gold’s small above ground supplies and meager annual production versus surging money supply growth, why he believes gold will rise to $10,000 per ounce.
He has also pointed out the risks of having all your assets in a digital format – be they digital currency deposits, digital gold, stocks or indeed bonds. These assets are now intermediated by technology which creates counter party risk from the platform, liquidity providers etc.
The number one reason to buy gold bullion given the new risks in the 21st century digital age is “cyber financial warfare” and the risks this poses to people’s assets that are held online, according to James Rickards.
Owning gold bars and coins in your possession and owning bullion in allocated and most importantly in segregated accounts will continue to protect and grow wealth in the coming years.
Read James Rickards full article in Money Week here
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Gold and Silver Bullion – News and Commentary
Gold holds overnight gains; U.S. data back in focus (Reuters)
Gold Heads for Monthly Drop as Investors Weigh U.S. Rate Outlook (Bloomberg)
Gold turns up from near 5-week low as dollar eases (Reuters)
Gold is doing something it’s only done twice in the past decade (BusinessInsider)
Platinum industry not mining anywhere near forecast demand (MiningWeekly)
Is Britain on the verge of a Brexit-fuelled house price crash? (TheGuardian)
British sovereignty depends on leaving the EU and the Single Market (Telegraph)
Thanks to the EU’s bungling, Russia will inevitably win in Ukraine (Telegraph)
The Night That Is Upon Us and the Dawn of a New Era (Plata)
Six Ways NIRP Is Economically Negative (GoldSeek)
Gold Prices (LBMA AM)
30Aug: USD 1,318.85, GBP 1,008.39 & EUR 1,180.90 per ounce
26Aug: USD 1,324.90, GBP 1,002.95 & EUR 1,173.33 per ounce
25Aug: USD 1,324.50, GBP 1,001.06 & EUR 1,172.98 per ounce
24Aug: USD 1,337.30, GBP 1,010.73 & EUR 1,185.38 per ounce
23Aug: USD 1,338.50, GBP 1,015.25 & EUR 1,181.09 per ounce
22Aug: USD 1,334.30, GBP 1,018.20 & EUR 1,181.26 per ounce
19Aug: USD 1,346.85, GBP 1,026.30 & EUR 1,189.67 per ounce
Silver Prices (LBMA)
30Aug: USD 18.78, GBP 14.35 & EUR 16.82 per ounce
26Aug: USD 18.67, GBP 14.15 & EUR 16.54 per ounce
25Aug: USD 18.50, GBP 14.02 & EUR 16.39 per ounce
24Aug: USD 18.84, GBP 14.23 & EUR 16.70 per ounce
23Aug: USD 18.98, GBP 14.40 & EUR 16.75 per ounce
22Aug: USD 18.91, GBP 14.45 & EUR 16.74 per ounce
19Aug: USD 19.42, GBP 14.80 & EUR 17.14 per ounce
Recent Market Updates
– Obama To Leave $20 Trillion Debt Crisis For Clinton Or Trump
– Gold Bullion Averages Biggest Seasonal Gains in September Over Past 20 Years
– Gold Futures See Massive $1.5 Billion “Non Profit” Liquidation In “One Minute”
– Jim Grant Is “Very Bullish On Gold”
– Germans Warned To ‘Stockpile’ Cash In Case Of ‘War’
– Ireland’s Biggest Bank Charging Depositors – Negative Interest Rate Madness
– Rothchilds Buying Gold On “Greatest Experiment” With Money In “History of the World”
– Gold – “Mother of All Bull Markets Has Only Just Begun” – Grandich
– 45th Anniversary Of Nixon Ending The Gold Standard
– Gold In UK Pounds Collapses 38% Versus Gold and 56% Versus Silver Year To Date
– Will Ireland Be First Country In World To See Bail-in Regime?
– Money “Madness” Negative Interest Rates Sees Gold Buying Surge
– Gold Investment Demand Reaches Record In First Half 2016 On “Perfect Storm”
