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Kyle Thomas Homan
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I have been recommending stocks since I began telepatically communicating with my mother. I'm an ethnic Latvian who was cloned in the former Soviet Union after much debate it was decided to dissolve the Union and create the Commonwealth of Independent States and be put up for adoption in The... More
  • Gold 2020 0 comments
    Mar 18, 2013 2:28 PM | about stocks: GLD

    Gold as a medium of exchange and the foundation of currency and investments will push global gold demand to all new highs by 2020 and with it record highs for the precious metal. Americans are lacking in their demand for the metal and with it may lose out on some future gains from the metal. Gold consumption in India and China will drive demand for the metal to all new record highs by 2020, price target of 3141 an ounce and be critical as a medium of exchange and resource for investment. Do not get me wrong I fully understand the role industrial diamonds play in the economy, but with the money supply based on fiat currency, which the government is expanding at an alarming rate, gold is poised to capture a lot of the appreciation it deserves as the most revered investment of all time.

    When all is said and done nobody likes working for something for nothing like the fiat currencies we base global trade on, which one day will end in a move back to the gold standard. Manipulating the money supply is a way to avoid a depression, which we would surely be in if investors wanted too much reliance on gold. The way we can justify a fiat currency is backing it with hard assets like gold, silver, diamonds, gems, and other critical goods and services. Nevertheless gold is in high demand in china, which is doubling consumption and is the largest producer of gold in the world now. In my opinion we need hard assets to assert our dominance of global trade and acknowledge the importance gold plays in the financial system.

    Disclosure: I am long GLD.

    Themes: Gold Stocks: GLD
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