Gold

Hong Kong Exchanges and Clearing Limited (“HKEX”) launched dual-currency (USD and RMB pricing and settlement) physical delivery Gold Futures Contracts (“Gold Contracts”) through its subsidiary, the Hong Kong Futures Exchange (“HKFE”), on 10 July 2017.

To understand why the somewhat cliche 10% gold investment allocation mantra may be somewhat misleading today, some historical context is required.

Over the last 150 years, the West has gone from human slavery to debt slavery.

The trillions of dollars, euro, yens, Yuan etc. created by the central banks since the 2008 crisis haven’t triggered any wave of inflation, contrary to what history has been teaching thus far. But should we underestimate the risk? Of course not.

In the next 3-5 years most asset classes, be it stocks, bonds or property or just currencies are likely to lose 75% to 99% against gold and silver. Certainly not a risk worth taking.

The latest extremely bullish COT charts are not negated by the dollar being oversold here and some of its indicators looking positive. The bigger picture is that the dollar may be headed for a breakdown and severe decline or even a crash.

Zero interest rates are causing financial instability.

It is not only paper gold which is Fake. Few investors realise that most of their investments are Fake.

With the COTs having cleared in the PMs & goldstocks poised to move higher it looks like it is time for gold to move up & break the 6 year downtrend line & move solidly away from it.

The dollar rally out of the 2014 3 YCL has fooled everyone into thinking the dollar is strong and the euro is going to collapse. So everyone is now on the wrong side of the market. That’s pretty much how every bear market starts with everyone on the wrong side of the boat.