Fiat Currencies Always Rally And Strengthen Before They Die!

A five year old could look at today’s stock market chart and see that it is set for a free-fall!   The question remains, WHEN and HOW MUCH will it decline?  I have said before May is a good month to go on vacation and return after the usual fall correction, just expect a large correction every 7-8 years!  Let me refresh your mind to recent market loses; 1980 - 30%, 1987 - 40%, 1994 - 35%, 2000 - 40%, 2008 - 55%.  This time around expect a minimum correction of 50%, and quite possibly!   Have you prepared by purchasing metals at these prices or are you still waiting for the very bottom?  Or are you part of the faithful crowd whom think that everything is going to be O.K.?  Investors have, once again, been lulled to sleep by a market that continues the “Never Ending Story”. 

When the equity markets crash, central bankers will AGAIN start up the printing presses, (just adding more zeros to our virtual cyber money).  Just another lost attempt to hyper-inflate and jump start the economy yet AGAIN.  The history of fiat currencies AGAIN will show that the populace desired their ruinous debt instrument the dollar we have today.  They willingly took the freebies that the money that seemingly grew on trees bought them.  This “Never Ending Story” will AGAIN insure the inevitable failure of our current fiat money, the dollar.  Next, we will AGAIN experience more continuous intervention of government and their central planners as they attempt to control and extend the inevitable.  AGAIN they will be unable to prevent the collapse of yet another unsustainable financial system.  Lastly we see the systems current fiat currency AGAIN go through a period of strength.  This is actually the final dying stage, what you see when a person rallies before they pass from this life.  DO NOT be fooled that the dollars and paper investments you are holding are somehow strong and valuable.  The populace’s sentiment for gold will reverse and fuel gold, as a monetary inflation hedge.  That day ALL will receive the education of their lifetimes as they awaken to the real truth of what real money is and has been since the beginning of commerce. 

It reminds me of greeting our cattle herd in Iowa.  I tried to tell the herd to head for the hills because their owner was going to send them to market for steaks and hamburger.  Everyone of them said, “Oh no, my owner wouldn’t do that, he loves us and gave me this beautiful field of green grass to walk in, he feeds me a silage mix with corn and when I get sick I get free vet care!”   Then the semi-trailer arrived, backed up to the feedlot and the cattle followed one another into the trailer and headed down the road to market still trusting their owner.

Now look at gold’s long term log chart!

The last bottom for gold happened in 1999 at $253 dollars and gained 760 percent in 12 years, up $1670 dollars!  Gold bugs are now awaiting the next big bull market to begin again having endured a 47% drop to $1089 from the markets high of $1923 in 2011!  However, gold will return in a rising trend whereby gold’s next bull market will occur.  A 760 percent gain in 12 years would move gold to $8,360 but more likely is that the next gold bull will be an overnight, almost vertical movement upwards to $2500 or $3000.  

The previous gold bull market in 1976 saw gold rise 800% in just 4 years.  Today’s buying opportunities only come around every 7 to 8 years and soon ALL will discover that the bottom has happened or is happening if gold drops further. These prices have NOT been seen in 4-5 years and I believe that YOU will not get a buying opportunity like we are seeing today until 2024. Shipments are slowing and customers have been calling to ask when they can expect delivery as I am seeing shipments slowed to 3-4 weeks from date of order!   I have discovered that my personal delivery has been exceptional as my local major competitor has been telling his clients to not expect Silver Eagles until Oct. 1!

The big picture shows a declining wedge meaning that gold is headed much higher by the end of 2015, perhaps as much as a 40 percent rise.   Gold generally rises sharply during stock market crashes, so a crash this year would fuel a huge move up especially when Gold future investors must cover their short positions.

The problem with waiting to buy your metals and catching the absolute bottom is this, ordering is easy but the patience it will take to get your hands on it is becoming problematic as we are already seeing shortages and delivery delays from 3 to more weeks.  The private mints aren’t selling below their production costs (who could blame them) and metals are dribbling into the metals companies often through rationing.   My best suggestion is to get in line and wait.  I feel fortunate that my customers are receiving their orders and I have even seen Platinum delivered within 4 weeks.  I would guess that delivery times will continue to stretch out as allotments and rations of products are delivered.  My competitor told me that he was told that Silver Eagle deliveries would be as late as Nov. 1^{st !}    Keep stacking while you can!