Up until January, the majority of people assumed that governments and
central banks had everything under control. Zero-Interest and
Negative-Interest rate policies coupled with unprecedented monetary
printing appeared to have stabilized the economy and financial markets. But
then something broke. Stock exchanges crashed following the New
Year and investors the world over went into panic mode. They
sold pretty much everything, including oil and the oft touted Internet 2.0
behemoths that were, in some cases, selling at 500 times their earnings. It
was a rush for the exits.
But as we’ve noted repeatedly in recent years, when financial panic,
confusion and uncertainty take hold, the smart money will rapidly moves into
wealth preservation assets of last resort. And, this is exactly what we saw
over the last two months. Though broader stock markets were crashing,
precious metals and the companies that mine them exploded to the
upside. Exchange traded funds that track gold were up double digit
percentages and in some cases stock prices nearly doubled.
With more economic machinations from the powers that be sure to come and a
currency crisis looming, what we recently saw with gold and silver is just a
small preview of how precious metals will behave during serious and
sustained market disruptions. Some analysts have suggested that the next
stock market crash will be deeper and more violent than what we saw in 2008.
And as Future
Money Trends notes in their latest video below, that could mean massive
moves for gold:
We believe the gold price will go absolutely ballistic… with a
repricing of a level of $10,000 per ounce or higher as predicted by former
CIA adviser Jim Rickards.
(Watch At
Youtube)
And how does one position themselves to take advantage of this crisis
asset of last resort?
Holding the physical asset in the form of bullion is, of course, highly
recommended.
But for those with investment accounts like 401(k)’s or IRA’s, consider
following China’s lead:
For 7,000 years man has mined gold deposits, making it possibly one of the
most reliable businesses in human history… and one of the smartest because
owning a gold mine allows you to keep producing the gold after your initial
investment…
Think about it, for all of human history gold is so precious, so rare,
that if you took all the Egyptians mined… the Romans… and everything since…
we would only have three Olympic sized swimming pools full of gold.
The headlines for gold these last few years have all focused on physical
gold accumulation by China, Russia and Eastern central banks… but what
they have missed is a 7,000 year old strategy that China is doubling down on…
According to data compiled by Bloomberg, in 2013 asset purchases by Honk Kong
and mainland miners increased by $2.2 billion. China is buying gold mines at
a record.
…By August of this year Chinese influence will have
infiltrated the biggest financial institutions in the world with China only
revealing their physical bullion above ground while saying nothing about
their mine acquisitions. This explains their long-term strategy to implement
some form of gold-backed currency.
The world may well be on its way to the largest gold rally of our
lifetime.
When it comes to positioning oneself for crisis, gold and silver have
stood the test of time for thousands of years. There will no doubt be ups and
downs going forward, but the trend is clear.
For more videos, interviews, news and commentary visit Future Money Trends.
Click
here to learn how you can follow China’s strategy of accumulating mining
assets ahead of the next bull market.
