Gold Breakout Signals A Financial Hurricane Coming Onshore

I found it amusing that Mohamed El-Erian wrote an opinion piece for Bloomberg which asserted that gold is not much of a “safe haven these days.”  His thesis was entirely devoid of material facts.  His underlying rationale was that safe haven capital was flowing into cryptocurrencies rather than gold.  I guess if one has a western-centric view of the markets, that argument is a modicum of validity.  However the scope of the analysis omits that fact that the entire eastern hemisphere is converting fiat currency at a record pace into physical gold that requires bona fide delivery outside of western custodial roach motels.

Elijah Johnson invited me onto his podcast sponsored by Silver Doctors to discuss why the financial upheaval beginning to engulf the United States will be much worse than the 2008 “Big Short” crisis.  We also discussed by the precious market has always been and will continue be the best place to seek shelter from coming financial hurricane:

If you are looking for ways to take advantage of the next move higher in the precious metals bull market, you can find out more information about the Mining Stock Journal using this link:  Mining Stock Journal subscription information.

5 thoughts on “Gold Breakout Signals A Financial Hurricane Coming Onshore

  1. “The financial hurricane ” that is rumbling towards the
    U.S. will make Harvey look like a gentle spring shower.
    May God bless and give strength to all affected by Harvey.

  2. Bravo for mentioning gold’s 5000-year history, Dave. Unfortunately, economic-dunderheads will just look at this accomplishment as proof that gold’s a “barbarous relic” simply because it’s use is very old. And yet, that’s 5000+ years of DOMINANCE against alternative monies that the market has experimented with (such as seashells, salts, tulip bulbs, beer, coffee beans, etc). Essentially, the economic equivalent of the WHEEL, and yet nobody considers that a relic by any means.

    Obviously, this dystopian way of thinking applies more to the West than the East…so I shudder to think how they’ll perceive us after this ponzi-paradigm finally runs its course. Will we be seen as cavemen who abandoned the wheel in favor of squares and triangles…or the idiots in The Hitchhiker’s Guide To The Galaxy who turned tree leaves into legal tender?

  3. Now we are going to see some interesting changes.
    The yuan will be gold backed and used to purchase
    oil on a global scale. Will I have to convert my Dollars
    to Yuan to participate in trading on the Chinese Exchange?
    I think so, good thing we have an exchange here in LA.
    Dollar dominance is slowly being eroded. Hey Dave what’s
    the over under on the Dollar being toast by the 1st quarter
    of 2018?

    http://oilprice.com/Latest-Energy-News/World-News/China-Readies-Yuan-Priced-Crude-Oil-Benchmark-Backed-By-Gold.html

  4. IMO Cryptos = fiat on super steroids. What exactly are they backed by? I can’t believe they have become mainstream now, with sites like Yahoo finance showing it as the first “currency” its currency widget.

    1. They’re backed by nothing, as you know. It’s trading software,plain and simple, but the pumpers are using extreme false-advertising to lure in speculators. The fact that the there are no criminal investigations or lawsuits occurring against crypto-marketers for outright lying about their “coins” being “currency” (a term suggesting legal-tender status) is a major red-flag, but will sadly be ignored. It’s as I predicted; the state will simply tax the exchanges and even encourage more of this insanity.

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