THE FUTURE OF GOLD AND GOLD MINERSThe future of gold is up, up, and away and most gold miner stocks will follow. We just need to be patient, our day will come.
There is no giant conspiracy!! Gold goes up when the fiat currency loses its value, which we name in loose terms INFLATION. This is usually brought on by low interest rates and excessive government spending creating massive government debts.
At this moment we are actually in a temporary DEFLATION cycle. Oil, the worlds number one traded product, traded in dollars is at an almost all time low in adjusted dollars. Trading in the low 30's, a few years back it was at 100+.
Tourism is not just deflationary, but almost dead. The airline industry has deflated more in a short time than I can remember on a world wide basis. (911 was mostly US and lasted a month before recovery started)
We do not even have to discuss the food and drink sector.
Retail, movies, concerts, all this is deflationary.
Hotels, motels, even trains are in a deflationary state. I saw a flight a week ago, round trip from Detroit to London for $199. If I was superman I would have bought it.
The good news from a gold aspect, countries worldwide will lower rates again, most of the world will be in zirp or Nirp. All countries will employ massive spending programs. Massive programs will be spent in the medical industry. Programs to save companies, maybe a halt on mortgage payments, these are all inflationary. In months, not years, a recovery will begin and oil will come back to a liveable price or else governments will be forced to spend billions to save the oil industry.
As we turn from deflation to inflation, or a month or so in advance gold will move on a steady basis up. The printing presses in DC, London, Madrid, Rome, Paris, etc. will be working overtime. Remember ALL politicians, Dems or Repubs want to be remembered as the guy or gal that came to the rescue during this time.
Today is a day to buy gold miners.