Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Hyperinflation in Zimbabwe Ė Itís back, but maybe not for long
By: JP Koning

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape
By: John Rubino

Gold's Interesting Day
By: Rick Ackerman

Asian Metals Market Update: November-20-2017
By: Chintan Karnani, Insignia Consultants

GoldSeek.com Radio: John Williams and Louis Navellier, and your host Chris Waltzek
By: radio.GoldSeek.com

Gold Market Update
By: Clive Maund

Technical Scoop - Weekend Update Nov 19
By: David Chapman

Zero Hedge invites Financial Times to heed GATA's urging on gold suppression
By: Chris Powell

The Great Retirement Con
By: Adam Taggart

Perspective on the Gold/Oil Ratio, Macro Fundamentals and a Gold Sector Bottom
By: Gary Tanashian

 
Search

GoldSeek Web

 
Now is the Time to Buy Gold (But donít take a loan for that :). And do it SIP by SIP)


 -- Published: Friday, 31 October 2014 | Print  | Disqus 

Global:

I was just wondering this morning, what new drama we are about to see, when the Quantitative Easing Program by the US Federal Reserve has ended. Well, The second Act of the drama has begun. The Bank of Japan has stepped in and begun pumping liquidity into the markets by way of asset purchases. And right on cue, the global stock markets (especially the BSE Sensex and Nifty) have bounded to lifetime highs...Underlying fundamentals be damned!!! And mind you, this is all hot money, quick to come and quicker to flee.

Macro:

BTW, I wonder why, the governments of the world wonít leave the markets alone. This has begun to increasingly look like socialism all over the world. The governments and their Central Banks are increasingly trying to intervene in the markets. At this rate, very soon, we are going to be seeing most of the ownership of the world's productive assets in the hands of BIG GOVERNMENTS. And we all know what happens when The Government starts owning all the means of production. Long lines at the ration shops. The war between the Communists And Capitalists just reversed...

Micro:

A Few days back I met a retired person. He had heard somebody predict that the BSE Sensex was going to reach a level of 50000 from the current level of 25000. And he was planning to put his retirement savings into the stock markets. I strongly advised him against it and told him to either put his money into a nice a safe nationalized bank fixed deposit or purchase gold bullion if he was feeling a bit adventurous.

What Next:

After a lot of dabblings with the world's finances, The Bank of Japan will stop its own QE, but then the EU will pitch in, then China, then the US again, after all, money can be created out of electronics bits now-a-days.

How will the crash come:

The crash in the stock, derivatives and bond markets will not come in the near future. That is a certainty. But how?

Here is a speculation:

It will begin as some really small event. Somewhere, someone is not going to be able to pay back his loan. Or maybe some small country is going to default on its obligations. And the domino will begin. And it will be good. A certain amount of deflation has always been good for the progress of humanity. It weeds out the weak and inefficient and strengthens the efficient businesses.

But no. In todayís scenario, The central banks will still try to valiantly avert the said crash, by buying still more assets. In the long term, what will happen is that the central banks and governments and government owned enterprises will end up with owning most of the stocks, bonds and other assets. This is a sure fire way towards Socialism. With all the hardships it entails. And then the Big Government will even confiscate all private gold.

Alternately, the economic exploitation of nature will reach such a great degree, that mother nature will give way. Hmm, that looks like a certain possibility in a sufficiently long term. Keynes said that we are all dead in the long term. But it is our duty to ensure the survival of our children and grandchildren. So, we need to be thinking about ALL the possibilities.

Just Stored cans of food and ammunition are not going to ensure the survival of your grandchildren. Itís going to be financial assets in the coming new world order.

And gold as we know it IS MONEY. Buy it and store it. And it will Just sit there. It wonít corrode. It wonít evaporate. It wonít spoil. Somebody down the line will discover, that some grandpa has saved some money in the locker. And if he / she is wise enough, will know how to use it properly.

And now is the right time to buy. But not as a speculative asset. Neither as a quick bargain. Buy in small quantities. Buy As much each year as you can save, after taking care of all expenses. And the more aggressive folks can certainly buy in monthly SIPs (the financialists say SYSTEMATIC INVESTMENT PLANNING Ė SIP).

The floor of gold price production currently is about 1200 USD. So, gold at anything lower than 1200USD is definitely attractive. Because, at less than 1200 USD, the miners stop mining gold, or mine it very minimally, to cover their daily expenses.

And remember, GOLD at 1USD an ounce means we are, all of us, wearing golden ornaments and golden crowns (like the GODS) without any risk of it being stolen.

Which means we are, all of us, happy and well fed :).

Manish Thatte

manishjagdishthatte@gmail.com


| Digg This Article
 -- Published: Friday, 31 October 2014 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.