The anxiety in Europe has been slowly building. Last week the lid blew
off.
As you probably know, Europeans have been grappling with a number of
issues…
• Many stock markets have been teetering.
• The strategy for implementing Brexit remains confusing and unresolved.
• The popularity of anti-establishment politicians running in upcoming
elections in Germany, France, and the Netherlands is growing.
Throw in all the debt that continues to weigh heavily on virtually every
country in Europe and you have people saying stuff like this…
• “The euro region could break up if political leaders don’t come to grips
with the discontent that’s spurring support for populist leaders across the
continent.” - Jamie Dimon, JPMorgan Chase CEO
• “Europe is in a major state of flux.” - Joe Jimenez, Novartis CEO
• “The consequences will be dire if the region breaks down.” - George Soros,
billionaire investor
And then last week the snowflake landed that pushed investors over the
edge… President Trump signed an executive order to withdraw the US from the
Trans-Pacific Partnership with 11 other nations. Right or wrong, many
Europeans feel this will impact economic growth in their region. And if
growth slows, their economies will be in even greater trouble than they
already are.
This pushed investors to a tipping point, and anxiety spiked.
Guess what they did in response?
That’s not a typo in the chart. In just one week, one gold ETF in
Europe saw inflows of over half a billion dollars.
It was the fund’s biggest weekly inflow in 5 years. It was more than 10
times the amount GLD received in the same week.
You can see that for at least 3 years buying was subdued, and for many
weeks there were no purchases at all. Last year saw a noticeable increase,
but it wasn’t until last week when inflows exploded.
This is just one of four gold ETFs in Europe. They all saw huge spikes in
volume (Xetra-Gold was the biggest; it’s Germany’s GLD, so to speak). London,
too, saw a lot of investors pile into gold ETFs.
GLD saw an uptick in purchases at the same time, but not near as much as
the European ETFs. That’s because fear in Europe was much higher than in
North America. And that’s the point:
• When fear grows, investors seek gold.
This altruism seems obvious. But it shows that the next time fear spikes
here, we can expect a similar reaction to what Europe has seen.
And if you think a series of events is coming that will instill great
uncertainty, confusion, worry, and maybe even panic in your fellow citizens,
then you can expect to see an equally corresponding rush into gold.
You don’t need me to tell you what that kind of environment could do to
the price. For those already invested, you’ll benefit mightily when that
transition takes place.
Everyone here at GoldSilver is convinced that one of these days, not too
far off, many
of Mike’s predictions will begin to unfold. That’s why we continue to buy
physical gold and silver now. We encourage you to not put it off—you don’t
want to be scrambling to buy bullion at the same time everyone else is. The
chart above shows that for the most part, the interest in gold was sudden—once
a spike like that grabs hold, you’ll have to scurry to locate product, and
will end up overpaying for it, all the while kicking yourself for putting it
off.
So just keep accumulating, like I know many of you do. And here’s an
excellent way to do it…
• Our
brand new 2017 silver Pegasus round is now
available. It’s by far our most popular round, and the low premium
makes it much more affordable than a silver Eagle. Mike and I both just
bought some.
It’s not logical to think that with all the risks in the financial system
today, fear won’t spike again soon. When it inevitably does, investors will
turn to gold, just like they’re doing in Europe now. Make sure you’re ready
by owning a meaningful amount of physical gold and silver.
