Dedollarization

The exact level of the collapse in investment assets and surge of gold is of course impossible to forecast. What is virtually certain is that gold, relative to other assets, will increase substantially in value.

Chindia & Silk Road gold consumption for March.

It can’t happen here! What is happening in Venezuela and Argentina cannot occur in Western economies. That’s at least what markets believe with stocks and most bubble assets remaining in cloud cuckoo land. Rates in Argentina have just gone to 40% to protect the currency. Anyone who believes that...

Strategic investments are made for the long run and with no intent of short term gains or concern of short term fluctuations. This kind of investing is based on buying undervalued and unloved assets and holding them for a very long term.

Gold is actually at a good point to turn up here, as it is close to a zone of support which is underpinned by the rising 200-day moving average in quite close proximity. This looks like a pretty good point to undertake more accumulation.

Gold in Venezuelan Bolivars moves up exponentially every week. The price has gone from VEF 200 to VEF 75 million in this century and that won’t be the end. We will see similar moves in all currencies in coming years including the Dollar, Euro, Pound, Yen etc.

A war with Iran would eliminate the largest non-USD oil exporter. One thing leads to another. The gold repatriations are a precursor to a currency war and armed conflict. That’s what drives US foreign policy.

The time to own physical gold and silver is today and not when they move to new highs. Both metals are at inflation adjusted historical lows and the downside risk is minimal. Also, they probably are the most undervalued of all assets currently.

A Bundesbank exhibit pays tribute to Germans' deep-seated love of the precious metal while honoring postwar economic prowess.

Many banks are ailing in Europe, notably in Italy, Greece and Spain, but Deutsche Bank, sitting at the core of Europe’s largest and most competitive economy, is like an atomic bomb that could spark a worldwide financial crisis, just like Lehman Brothers did in the past. Even Mario Draghi, ordinar...