“Gold bubble? I regard such talk as nonsense . . . . Gold is about 52% higher than the peak weekly average price of January 1980. The US CPI is 177% higher, US M-2 Money Supply is 464% higher, and the S&P is 892% higher. I don’t think it untoward to suggest gold is badly lagging a number of important yardsticks and at these levels has some catching up to do.”
Bull markets like this gold bull market come along, if we’re lucky, once or twice in a lifetime. I’m talking about bull markets that can make you rich. But there’s something very different about this gold bull market. It can do two things — it can make you rich and it may save you from a disaster in your other investments.
As I see it, the trend is in place. The rush to own gold is on. It’s starting very slowly and conservatively with gold increasing against fiat currencies by 2% to 5% a week. To many people, gold seems “too high,” “too expensive.” The poor ignorant fools don’t see or understand that fiat currency is being denigrated before our eyes, and it is doomed. The fact is that it’s really the currencies created by the central banks that are far too expensive. In fact, the real question is — five or ten years from now, will fiat currencies be worth anything at all?
Gold may need a rest — it’s been higher on 17 of the last 20 sessions. Analysts are still watching supply-demand equations for gold, hoping that this will give them hints as to where gold is going. In doing so, they are treating gold just like any other commodity — like copper or zinc. Wrong; gold is money and a safe haven alternative to fiat money. No wonder the Fed and the central banks fear and despise gold. When gold rises, as it’s been doing, it tells us that the world distrusts fiat money, and that people are turning in their central-bank created “junk money” for the real thing, time-honored true wealth better known as gold.
