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Gold triumphs as fiat dies

Commentaries & Views

  1. For citizens of the world, is the death of fiat currency becoming… the new normal?

  2. Double-click to enlarge what is obviously the most important chart for currency investors… the long-term dollar versus gold chart. 

  3. The relentless decline of US liberty correlates perfectly with America's refusal to reverse the policy that replaced real gold money with unlimited supply government fiat.

  4. Both US political parties embrace this vile fiat monetary system… a system that exists to empower the elite.

  5. For the elite, it comes with the "fringe benefit" of encouraging citizens to worship government and central banks instead of working diligently to get more gold.

  6. At "World Fiat Headquarters" (America), the democrats are currently in power, although the republicans could do well in the mid-term elections.  The bottom line:

  7. Ride, fiat cowboys, ride.

  8. Several years ago, I began detailing the rough roadmap for a transition from deflation to inflation.  I suggested that America's refusal to abandon fiat money had brought it to a point in time somewhat like 1966.

  9. What lies ahead though is likely to be a hideous hybrid of 1966 and 1929.

  10. While most mainstream analysts missed the transition, back in 2017 Deutsche Bank's Jim Reid appeared to understand the magnitude of the coming horror.  He also realises that the end of fiat is a multi-decade process, not a short 1979-style firecracker event. 

  11.  It is likely only a matter of time (and perhaps not much) before citizens of the world will be able to use gold tokens to purchase products from major retailers. 

  12. The failure of fiat is obvious.  Over the next decade, the failure is destined to become exponentially more obvious.

  13. Gold, crypto, or both?  Well, since the inception of bitcoin, my view has been that crypto is awesome, and gold… even more so.  The big question is, can these two private monies function in harmony? 

  14. For one possible answer to this question. The PAXG gold token is one way for gold bugs to get into the crypto market, while staying invested in gold rather than in something new that they don't fully understand. 

  15. The Paxos team is reputable and arbitrage opportunities do arise. Double-click to enlarge this short-term gold token chart.  At times, the token price seems to "disconnect" and surge $100/ounce higher than the COMEX price. 

  16. Interestingly, the disconnect is mainly to the upside, giving the investors opportunities to grab $100/ounce in extra profits! 

  17. If investors have the will to get more gold, clearly, it can be done.  To view another one of the key charts I use to get this job accomplished.  Double-click to enlarge this "junior-intermediates" GDXJ chart.  GDXJ can give gold and silver stock investors a bit more action than GDX or GOAU, but not as much as buying a portfolio of CDNX miners.

  18. When investors buy these ETFs or some of the component stocks at my key gold bullion buys zones (like $1671 most recently), the intermediate-term profits are typically in the 20%-30% range, and often higher.

  19. The substantial profits are garnered in a just a few months of time, and sometimes just a few weeks. 

  20. Investors who want to call a top rather than just book great profits can give back gains, if they are not diligent about systematically selling a portion of what they buy.

  21. In the big picture, gold is likely beginning an advance towards $3000.  As that happens, global fiat will experience another significant loss of confidence event.  US citizens are relying on fiat-oriented politicians to fix what fiat broke.  In a nutshell, the people have become rats running on a sinking wheel.   

  22. Double-click to enlarge.  Gold is likely to experience a pullback from the $2089 area, but note the action of my important 5,15 moving averages; until there's a sell signal crossover (which is not even on the technical horizon right now), a significant reaction is unlikely. 

  23. The green shoots I highlighted back around $1671 (including record physical buying by the citizens of India) are beginning to look like the rise of an oak tree forest. 

  24. Fiat is forlorn, and a gold bull era is born!
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.