27 Reasons why gold will rise
when any of them disappears, LET ME KNOW
until then, GOLD bull market will be relentless
except for short rest periods
GOLD, the anti-US$, will fall in lockstep
I believe GOLD is leading USDollar in last few months
321gold.com
1. real rate of interest has been near zero since Oct2001
2. rise in foreign holdings of US assets increases our vulnerability to foreign abandonment
3. money supply increased over 40% since Jan 2001, close to 100% rise since 1991
4. return to federal deficits from recession and wartime economy, security spending
5. rising world tension, desire for safer safe haven, the geopolitical threat to peace
6. Glass-Steagal Law repeal now heightens risk of financial cluster failure in progress
7. world perception of American institutionalized dishonesty
8. likelihood of systemic banking shock waves from debt collapse and derivative chain reaction
9. reduction of USDollar usage as both store of value, banking reserve asset
10. sharp increase of savings across Asia in the form of gold
11. Islamic world is planning gold-centric international commerce, distancing from USDollar
12. Bank for International Settlements has targeted the US dollar for a corrective decline
13. reversal of miner hedges, end of gold leasing, reducing supply
14. dismantled mining supply apparatus, from systemic price below production
15. paradox: high gold price leads to higher demand, and high price leads to lower supply
16. trade tariff resumption discourages global trading village concept
17. USDollar correction to relieve the trade imbalance could result in a currency crisis
18. accelerating worldwide currency turbulence
19. European currencies offer more attractive alternatives to USDollar, with Swiss Franc leading
20. the calendar date Sept 11th marked the turning point for USDollar in two critical years
21. rising costs from entire energy complex (crude oil, natural gas, heating oil, gasoline)
22. commodity trend reversal has begun, the beginning of a new longterm trend
23. Kondratieff Winter is gathering speed and force
24. divergence toward deflationary credit-based economy, inflationary cash-based economy
25. the parallel between gold’s rise in the 1970’s and 2000’s has many components
26. major gold producing nations are seeing production costs rise in dollar terms from rising currency, which has resulted in sharply declining profit margins, and may force mine property shutdowns
27. major smelters are seeing energy costs rise in dollar terms, as the cost of natural gas has increased, which has resulted in the shutdown of many large facilities |
