Hard Assets Alliance was created as a cooperative of investment professionals who believe there’s a better way to invest in precious metals. This is a guest perspective on the markets from one of these partners; we hope you enjoy it.
The Fed’s rate cut in July will potentially weaken the dollar – and the big winner could be goldbugs.
If you’ve considered buying gold… now is the perfect time to do it.
But does the price upswing of the past few months mean that we’re in for a new, longer-term era of strength in gold?
Will higher gold prices support better returns for mining shares and related investments?
Yes. Here’s why…
The economic elites of the world want inflation, and they’re going to get it — one way or another.
Rising inflation on a global scale will mean that currencies are worth less, so it will take more of any given currency to buy the same amount of gold.
Plus, everything that made the 2008 market crash so painful is even worse today.
Consider the long-running drama of too much private and government debt (the same debt the government is hoping to erase with their manufactured inflation), “too big to fail” banks (just take a look at Nomi’s article), derivatives, fake-financial engineering by large companies and dodgy loans for housing, cars and college tuition.
These financial and monetary problems aren’t limited to the U.S., or even advanced economies like Europe and Japan.
Entire regions across the world are in dire economic distress and mired in economic uncertainty.
What do people buy in times of economic uncertainty? Gold.
Last fall, the Dollar got stronger and the price of commodities crashed.
Earnings at almost all energy companies have fallen through the floor.
Major companies like Exxon Mobil, Chevron, Shell and many more have been downgraded by credit rating agencies. Most coal companies are bankrupt.
What was once a strong point of the North American economy is now weak.
Now think back to 2011 and high-priced oil from the Middle East, West Africa, Brazil and more.
Or solidly priced commodities like iron ore from Brazil and South Africa.
Or agricultural commodities like coffee, chocolate and soybeans from places as far afield as Ivory Coast, Vietnam and Argentina.
If you were a commodity exporter, your existence was la vie deluxe.
That 2011-era commodity-energy windfall is not the case anymore.
Far from it. Indeed, most globally traded commodities are currently in price doldrums.
Because of that, many commodity-exporting, emerging-market nations are all but insolvent.
A broad cash flow crisis has hit the whole world due to low prices for emerging market commodities.
This is why countries will be onboard with the plan Jim outlined for global inflation.
They all desperately need their commodity export prices to go back up to stoke economic growth.
This is the perfect time to get back into precious metals.
Gold is due for a new, upward run.