From Birch Gold Group
This well-known financial commentator — known as the “Pied Piper of emerging markets” — usually talks about hot new investment opportunities around the globe. But now, he can’t stop talking about gold.
Recently on CNBC’s Street Signs, veteran investor Mark Mobius, founding partner of Mobius Capital Partners, boldly proclaimed “gold is the way to go.” “Physical gold is the way to go, in my view, because of the incredible increase in money supply,” said Mobius. “All the central banks are trying to get interest rates down, they are pumping money into the system. Then, you have the cryptocurrencies coming in, so nobody really knows how much currency is out there.”
As expectations of a global recession continue to grow, we are seeing central banks from New Zealand to India lower interest rates to increase the money supply in the economy, which they hope leads to growth stimulation.
According to Mobius, all investors should hold some physical gold in their portfolios, with other portions in dividend yielding equities.
So why is Mobius now touting gold as today’s smart investment?
Let’s take a look at three big reasons that anyone with savings to protect needs to know…
Reason 1: The U.S. dollar and other currencies might get weaker
Gold has a history of rising in value when the U.S. dollar weakens, and there have been many reports coming from the Treasury Department that suggest they do not want a strong dollar. Even Mobius pointed this out on CNBC: “They are certainly going to weaken the dollar against other currencies and of course, it’s a race to the bottom. Because, as soon as they do that, other currencies will also weaken.”
“People are going to realize that you got to have gold, because all the currencies will be losing value,” Mobius added.
As the market gets volatile, gold’s ability to retain value better than other forms of currency makes it an attractive safe haven.
“At the end of the day, gold is a means of exchange. It’s a stable currency in some way,” said Mobius.
If you are unsure why a country would want to weaken their currency, the answer lies in their exports. A strong currency makes a country’s exports more expensive, while a weaker currency makes the country’s exports cheaper for overseas buyers.
The value of the U.S. dollar has become political lately, as the Treasury Department is engaged in a trade war with China. One of the strategies being seriously looked at is to orchestrate international trade and monetary policies that help facilitate the weakening of the greenback.
If the dollar weakens, gold may very well increase in value.
Speaking of the trade war, let’s now look at the next reason why now is a good time for gold investing.
Reason 2: Uncertainty around the U.S.-China trade war
During his recent interview, Mobius pointed out how the trade war with China is driving the Treasury Department to desire a weaker USD, and are so adamant about this they are even considering ways to help facilitate a weaker dollar.
The U.S.-China trade war is showing no signs of slowing down, and in fact could escalate more in the coming months. This could potentially disrupt global markets that are still relatively calm at this point.
The USD will feel a large brunt of the fallout. As the dollar’s devaluation is looking likely, this brings up many potential economic ramifications that are difficult to predict.
Regardless of which side you support in the trade war — bullish or bearish — the USD will be impacted by the U.S.-China trade war in three ways:
- Periodic Volatility – Each time a new tariff or enforcement of existing tariffs becomes public, the USD will be plagued with short-term volatilities.
- Fed Policy – The Federal Reserve holds the biggest impact on the USD’s value. Increasing the federal funds rate limits inflation and strengthens the USD. On the flip side, reducing the federal funds rate increases inflation and weakens the USD.
- Devaluation – If the U.S. economy does indeed fall into a recession, the government might do what it can to weaken the USD, all in the spirit of sparking economic growth to jumpstart a stagnant economy.
Reason 3: Increased aging population seeks safe-haven assets.
As gold regains its status as a “safe haven” investment, Birch Gold has seen an increase in demand from retirement account holders seeking to diversify with gold and silver. Even gold-backed ETFs, which can be problematic as a true investment in precious metals, have seen a large inflow of funds.
What’s Next?
Clearly there are many potential circumstances on the near horizon that could be putting gold in a favorable position for Americans. The current trade war between the U.S. and China is completely unpredictable at this point. Will the Treasury Department manipulate the greenback to lower the value? If so, a sharp drop in the value of the dollar could happen by the end of the year.
Are you ready?
With global tensions spiking, thousands of Americans are moving their IRA or 401(k) into an IRA backed by physical gold. Now, thanks to a little-known IRS Tax Law, you can too. Learn how with a free info kit on gold from Birch Gold Group. It reveals how physical precious metals can protect your savings, and how to open a Gold IRA. Click here to get your free Info Kit on Gold.
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“In the gold certificate market, there’s not enough registered gold backing the certificates currently being sold and traded. In 2012, there were about 20 claims on COMEX for every one ounce of physical gold in registered inventories. Four years later, in 2016, the number for COMEX ballooned to 550 paper ounces outstanding for every physical ounce of gold.”
Is there a verified source for this?
I’d love to see it because it means a lot of sold calls will go unfilled unless there’s enough demand for paper settlement. If not, it means a greatly inflated gold price and quite a slaughtering of pigs, some of whom will be more equal than others under the “rule of law” that no longer exists.
“Anyone who buys and then sells that which isn’t his’n
Must buy it back or go to pris’n …”
Correct me if I am wrong but the US government took all the gold from the people many ago. Is anyone foolish enough to think it will not happen again?
Actually, I doubt they will confiscate this time because there is too much of it in the hands of the rich and powerful. They know it is the only way to transfer wealth into the new financial paradigm. They are not about to lose this wealth in the coming reset. Still, desperate govts do desperate things but it seems unlikely because a complete reset of the financial system is now required and tbe US dollar will no longer be the global reserve currency.
Used to browse a coin store, and talk pros and cons w/ the owner.
I mentioned confiscation risks one time. His response?
They can’t confiscate if they can’t find, or don’t know who has.
So, then, ok…a few purchases.
But then, via paper trail, to prove ownership, not stolen, if proof is required? or
via fiat, with simple receipt, made out to Johnny Cash, dated, and spot prices then as noted?
Cash route. Years ago. The owner has since closed up shop, after a few too many brazen robbery attempts where shots were fired and exchanged, without any casualties.
He deemed the business too risky for where he could afford to rent shop space.
Overnight one time, thieves broke in through the roof. Morons.
They did a smash and grab of locked glass cases of the few trinkets of gold & gem jewelry.
More valuable coins locked up in displays were ignored within the collectibles-hoarder piles everywhere.
The gold coins and cash were locked in a vault on site, impenetrable to petty thieves.
They might zero in on confiscation by legal means of reporting requirements, for anyone
looking to exchange metal for fiat or SDR’s in place at the time, for large volume transactions.
Even more reason to think junk silver or small denomination gold, to act as barter in exchange for other valuable items on the black market.
The real risk? When incentives are put in place to rat out those trying to skirt the system, especially with metals. I suspect if all coin / metals dealers are outlawed or placed under severe restrictions, that will be a time realization that chaos and the 4th turning has arrived.
Prepare accordingly.
Very true My Gold was lost in a boating accident and I haven’t seen it since officers
Diversify slightly into Pre-1933 collectibles along with the bullion coinage. Do it with smaller cash transactions. The Pre-1933 gold and silver pieces can carry premiums and may see a high collector demand during spikes in precious metals. I currently see ninety percent pure Pre-1933 Eagles, half Eagles, and quarter Eagles of common dates at my local coin shop in very fine to mint uncirculated condition at affordable prices. Double Eagles, however, are harder to find.
Graded Morgans and Peace dollars are cheap now, too. Soon they won’t be.
I’m holding the Older Precious now for strictly collector value and will try to acquire more. They may come in handy for an odd case of ammo, food, or affordable land later when SHTF … or better yet, when the day comes I can tell the smug wife “When I told you fiat was sh*t, I wasn’t crazy after all. I was just way ahead of the f*cking game.”
e.d. go to. BGASC.com. great service and very competitive prices. Ive been using them for years errrrr, I just look though. Yeah, that’s the ticket…
e.d.
I forgot to say they have a good collection of pre 1933 coins like the double eagles
From what I’ve heard from the experts you will be better off with junk silver and generic gold Better return if there’s a currency collapse
You can always call Egon Von Greyerz and store your gold in his Swiss vaults No confiscation risk or extremely low risk anyway
The only fools were the undereducated serfs who gave it to the corrupt Bankster owned frigg’in government.
ROOSEVELT’S GOLD?
Author: Don Stott | Publish Date: 08/26/2019
http://www.coloradogold.com/post.php
COLD IRON (or Hot Lead in 2019)
Gold is for the mistress — silver for the maid — Copper for the craftsman cunning at his trade.”
“Good!” said the Baron, sitting in his hall, “But Iron — Cold Iron — is master of them all.”
Rudyard Kipling
Old White Guy – this bears repeating:
O Gold! I still prefer thee unto paper, which makes bank credit like a bark of vapour. — Lord Byron
The castle gates will always open for gold-laden donkeys. — Russian Proverb
If you are sick, think about your life; if you are better, think about your gold. — Mongolian Proverb
Pure gold does not rust. Only gold alloys do so. You may have golden dreams. But if you go in the company of toxic people, you become “a gold alloy” and what that means is that you can rust at any time! ― Israelmore Ayivor
The beauty about gold, though, is that in all states from uncertainty to conviction, it never for once gives up its luster. ― Ufuoma Apoki
Gold — what can it not do, and undo? — William Shakespeare
Gold opens all locks. No lock will hold against the power of gold. — George Herbert
Gold gives to the ugliest thing a certain charming air, for that without it were else a miserable affair. — Moliére
Truth, like gold, is to be obtained not by its growth, but by washing away from it all that is not gold. — Leo Tolstoy
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. Gold was an objective value, an equivalent of wealth produced. Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: “Account Overdrawn.” — Ayn Rand
You have to choose (as a voter) between trusting to the natural stability of gold and the natural stability of the honesty and intelligence of the members of the Government. And, with due respect for these gentlemen, I advise you, as long as the Capitalist system lasts, to vote for gold. — George Bernard Shaw
Gold would have value if for no other reason than that it enables a citizen to fashion his financial escape from the state. — William F. Rickenbacker
Like Liberty, gold never stays where it is undervalued. — John S. Morrill
It is extraordinary how many emotional storms one may weather in safety if one is ballasted with ever so little gold. — William McFee
The desire of gold is not for gold. It is for the means of freedom and benefit. ― Ralph Waldo Emerson
Because silver and gold have their value from the matter itself, they have first this privilege, that the value of them cannot be altered by the power of one, nor of a few commonwealths, as being a common measure of the commodities of all places. But base money may easily be enhanced or abased. – Thomas Hobbes
Gold is a treasure, and he who possesses it does all he wishes to in this world, and succeeds in helping souls into paradise. – Christopher Columbus
Gold is not necessary. I have no interest in gold. We will build a solid state, without an ounce of gold behind it. Anyone who sells above the set prices, let him be marched off to a concentration camp. That’s the bastion of money. – Adolf Hitler
There can be no other criterion, no other standard than gold. Yes, gold which never changes, which can be shaped into ingots, bars, coins, which has no nationality and which is eternally and universally accepted as the unalterable fiduciary value par excellence. – Charles de Gaulle
We have gold because we cannot trust governments. ― Herbert Hoover
It’s absolutely critical that we audit the Fed so the American people can see what’s going on over there. Do it from top to bottom so that we can have transparency in this entity called the Federal Reserve. Hopefully, the American people will see that we need to go back to the gold standard, which I’ve introduced, and get rid of the Fed. – Paul Broun
Gold is money. Everything else is credit. – J. P. Morgan
Never trust money more than gold. ― Toba Beta
In reality, there is no such thing as an inflation of prices, relatively to gold. There is such a thing as a depreciated paper currency. — Lysander Spooner
In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. — Alan Greenspan
A gold standard doesn’t imply stability in the prices of the goods and services that people buy every day, it implies a stability in the price of gold itself. — Ben Bernanke
The desire for gold is the most universal and deeply rooted commercial instinct of the human race. — Gerald M. Loeb
When goods are exchanged between countries, they must be paid for by commodities or gold. They cannot be paid for by the notes, certificates, and checks of the purchaser’s country, since these are of value only in the country of issue. — Carroll Quigley
The gold standard did not collapse. Governments abolished it in order to pave the way for inflation. The whole grim apparatus of oppression and coercion — policemen, customs guards, penal courts, prisons, in some countries even executioners — had to be put into action in order to destroy the gold standard. Solemn pledges were broken, retroactive laws were promulgated, provisions of constitutions and bills of rights were openly defied. And hosts of servile writers praised what the governments had done and hailed the dawn of the fiat-money millennium. — Ludwig von Mises
With the exception only of the period of the gold standard, practically all governments of history have used their exclusive power to issue money to defraud and plunder the people. — Friedrich August von Hayek
Monetary policy today is guided by little more than government fiat — by the calculations, often-mistaken economic theories and whims of central bankers or, even worse, politicians. Under such a regime, inflation of three or four percent annually has come to be viewed as a stellar monetary performance. However, under a more sound monetary system — i.e., a gold standard — such increases in the general price level would be seen as wildly inflationary. — Raymond J. Keating
Although gold and silver are not by nature money, money is by nature gold and silver. — Karl Marx
Governments lie; bankers lie; even auditors sometimes lie. Gold tells the truth. — Lord Rees Mogg
Until government administrators can so identify the interests of government with those of the people and refrain from defrauding the masses through the device of currency depreciation for the sake of remaining in office, the wiser ones will prefer to keep as much of their wealth in the most stable and marketable forms possible — forms which only the precious metals provide. — Elgin Groseclose
If you don’t trust gold, do you trust the logic of taking a beautiful pine tree, worth about $4,000-$5,000, cutting it up, turning it into pulp and then paper, putting some ink on it and then calling it one billion dollars? — Kenneth J. Gerbino
The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine and to process; and that it cannot be created by political fiat or caprice. — Henry Hazlitt
Gold will be around, gold will be money when the dollar and the euro and the yuan and the ringgit are mere memories. — Richard Russell
Those entrapped by the herd instinct are drowned in the deluges of history. But there are always the few who observe, reason, and take precautions, and thus escape the flood. For these few gold has been the asset of last resort. — Antony C. Sutton
The modern mind dislikes gold because it blurts out unpleasant truths. — Joseph Schumpeter
They don’t give you gold medals for beating somebody. They give you gold medals for beating everybody. — Michael Johnson
My advice to you, my violent friend, is to seek out gold and sit on it. ― John Gardner
Because gold is honest money, it is disliked by dishonest men. — Ron Paul
Commodities such as gold and silver have a world market that transcends national borders, politics, religions and race. A person may not like someone else’s religion, but he’ll accept his gold. — Robert Kiyosaki
Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you’ll always be able to buy more food with your gold. — Peter Schiff
If the world does well, gold will be fine. If the world doesn’t do well, gold will also do fine…but a lot of other things could collapse. — Thomas Kaplan
If you want an alternative currency, check out gold. It has stood the test of thousands of years as a store of value and medium of exchange. — Paul Singer
The world’s central banks and the International Monetary Fund still have vaults full of bullion, even though currencies are no longer backed by gold. Governments hold on to it as a kind of magic symbol, a way of reassuring people that their money is real. — James Surowiecki
If you trade in paper, the notion of many who trade gold…if the financial world comes to an end, they’re going to have the gold. If you’re playing in ETFs, you’re going to have a piece of paper. — Rick Santelli
Gold is still the ultimate store of wealth. It’s the world’s only true money. And there isn’t much of it to go around. All of it ever mined would fit into a small building — a 56-foot cube. The annual world production would fit into a 14-foot cube, roughly the size of an ordinary living room. If each Chinese citizen were to buy just one ounce, it would take up the annual supply for the next 200 years. — Mark Nestmann
If ever there was an area in which to do the exact opposite of that which government and the media urge you to do, that area is the purchasing of gold. — Robert Ringer
Regardless of the dollar price involved, one ounce of gold would purchase a good-quality man’s suit at the conclusion of the Revolutionary War, the Civil War, the presidency of Franklin Roosevelt and today. — Peter A. Burshre
I like gold because it is a stabilizer; it is an insurance policy. — Kevin O’Leary
Last…my favorite:
Gold is the money of kings; silver is the money of gentlemen; barter is the money of peasants; but debt is the money of slaves. — Norm Franz
Good stuff thanxx
Brilliant and wise. Thanks Mark for posting. I just saved all of those thoughts.
You are wrong Plenty of smart people never succumbed to giving up their real wealth Only fools cooperated with such nonsense So yeah you’re wrong senile white guy
Thefts and outstanding debt left to the people’s treasury by the politicians and bankers will be repaid at interest with a terrible vengeance.
……and he didn’t even mention massive dollar printing to come.
Huge debt anywhere you look and $ trillions in obligations like social security , medicare that can’t be met/ paid.
The govt will be looking under every nook and crany to relieve you of your asset to transfer to others. Do you really want the govt to know what acorns you have and where you store them? Gold is invisible to the outstretched hand of the govt. This alone will be one of the best reasons to own some store of value with a 5000 history. ” gold, get you some”.
I have and silver as well and intend on getting more SOON