wakeupcall

Don't Believe the Gold Bears' Hype

Paul&$hark&O
Frustrated are you that so many gold bugs can take a punch and still stand?
Are you one of the paper “assholes” doing the punching?

What you and even many of the gold bugs do not understand is that gold is money - as is silver. Always have been. Though, so far, in this fiat-debt-money monetary system they’ve required a negative real rate (inflationary) environment to be seen as such. Otherwise they act as commodities. I suspect many gold bugs (such as your friend) instinctively know gold is money, but do not understand that there are times when it can not compete in a rigged paper system.

In the 1980’s we returned to positive REAL interest rates after rates were raised above the rate of inflation. This made paper attractive over gold. During that paper bull/gold bear market (twenty-year secular trend) gold was treated as a commodity – a weak one at that, given the supply/demand fundamentals for gold.

Silver was decimated. Which contributes to today’s fundamentally bullish case for silver (from a commodity perspective).

Now we are in an EXTREMELY NEGATIVE REAL RATE environment = INFLATIONARY. The precise level of wealth confiscation (actual inflation minus returns on paper) will vary between the laughable government numbers and more realistic numbers being tallied privately.

In a negative-rate environment such as this, gold returns as money (vs commodity). Silver is both, though it looks like the powers are attempting to destroy money silver by making it unobtainable to the public.

And yes, we CAN have monetary inflation with weak or negative economic growth. This environment is gold/silver bullish - and paper bearish.

Know your secular trends and cycles within the context of 5,000 years of price stability as measured in gold/silver.