Isn’t it great to invest a couple of hours watching an old movie you’ve seen several times before? Even though you know the ending, even though you know the progression, an epic movie always seems to entertain us over and over again. Watching today’s gold (and silver) market reminds me of an old classic film of yesterday. For those of us who follow gold closely, gold’s progression is not only obvious but predictable. Many disagree on timing but, in all honesty, timing is impossible to pinpoint and attempting the impossible comes down to luck more than anything. Today we’ll explain why stage is set for PM to go mainstream.
Do you own physical gold or silver? If you don’t you will and in all likelihood compete against some heavy hitters to do so. I say this with confidence because in my mind I have a few criteria that must be met before gold does what I know it will do, someday. One big criteria is for gold/silver to find mainstream populace during a time of currency debasement. We already live with global economic uncertainty and anyone doubting this as fact is not living reality. So the question is when will mainstream gold ownership collide with current uncertainty? We think the moment may be at hand. There is no chance mainstream investing will stand idle while gold and silver climb, especially when other investment types destabilize.
The reason we feel the moment is at hand is because three things must happen to trigger the mainstream toward precious metal ownership. One, an overall lack of confidence in recovery. No matter the country, state, or city, folks worldwide are losing confidence in recovery whether they are willing to admit it or not. Two, Fed commitment to never-ending quantitative easing (Fed announced last week the need to keep near zero interest rates till 2014). There soon will be twice the debt as when President Obama took office. Three, a run toward protection by mainstream investment, pensions, insurance, health plans, and private capital. Even those in power don’t want the game to end, they can no longer ignore the power of real money like PM (especially considering an age of imaginary money).
Can I hear a BINGO? The big question is what will a mainstream run do for your stash of gold and silver? I can describe the future of PM in one word, pressure. PRESSURE; urgent claim or demand….,a burdensome condition that is hard to bear. The kicker is gold and silver value is not containable, they are compelling. They are compelling because a limited supply of each exists without the opportunity to create much more. Combine this limited supply with an urgent claim or demand and it’s easy to predict gold/silver’s outcome. This is a perfect description of long-term gold and silver!
I urge readers to not take my word but look to current events as proof the above information is factual. Why does the Fed really need to keep interest rates near zero? Is this the only way to pay on record levels of borrowed money? Why are countries around the world (central banks too) buying gold at record levels? Is this a signal of self acknowledgment that reckless printing is ruining currencies? Is this acknowledging gold as the only true source of money and wealth preservation? Why does gold and silver continue to rise year after year? All signs how events of the day will influence gold and silver into a urgent claim or demand.
What is your take, is gold going mainstream or do prospective PM owners have plenty of time? Tell us your thoughts here.
YOUR QUESTIONS & COMMENTS:
Really enjoy the site and especially enjoy reading what others have to say. I do own some PM but probably not as much as I should. To me it seems the gold and silver market is in a state of volatility far over other forms of savings. I see no reason to pull money from a money market (guaranteed) then buy something that could drop in price (gold or silver)? At least I know my money will be there when I need it.
PROSPECTOR REPLY: Thanks for following our site (I also enjoy comments and questions most). You make a valid point concerning the safety of money market accounts but the long-term trend for such a source of saving is not good. Since 1971 to now, we punish the savers of the world. We know this by how little savers earn from deposits of hard-earned cash. The Fed just announced this punishment to savers will continue but disguised it well with trying to stimulate the overall economy (just looking after your best interest right?).
I have no concern if the goal is to keep savings in cash over short-term. One benefit of this site is providing several options but ultimately the decision is yours alone (I also keep a bank savings in cash, small savings). But the long-term benefits of cash will be devastating to say the least and it’s important that you realize this. Eventually interest rates will rise and eventually the buying power of your cash will decline. To be honest, it is already because interest earned is less than real inflation. It only appears the same amount of money because you’re comparing dollars to dollars and not dollar value to gold value. To me holding too much cash is similar to the ground splitting open in front and toward you but you doing nothing. To do nothing is certain destruction but moving left or right offers hope. My point; being proactive is necessary and my money is on PM. We are living history while watching a monetary collapse fueled by too much debt and invisible currencies.