Faceless words without inflection are easily misunderstood by even the best of intentions. ~:o)
"THE GREATEST BULL MARKET OF ALL TIME"
"Since 2001, commodities, such as gold, silver, nickel, copper, lead, zinc, cotton, soya, cocoa etc have been in a bull market that mirrors the decline of the US$, in which they are all quoted on world markets. As the US$ continues its descent to unfathomed depths, the clamor for hard, commodity based assets accelerates. Furthermore, the Fed, now facing the chess game equivalent of "Zugzwang" (every move it now makes will lose), can do nothing other than stand by and watch the dollar decline continue until the point is reached where the US faces an "International Dollar Crisis". Then, like it or not, the Fed has to act and act resolutely. At this juncture, interest rates will skyrocket, bringing the great "Equities - Bonds - Real Estate Party" to its ultimate demise; i.e., a total train wreck that will make 1929 look like a children's tea party.
Before all this happens, the precious metals will have their revenge on the Fed's great FIAT experiment. Gold, in particular, will rise to US$ dollar prices that people would currently regard as completely insane. However, it is worth bearing in mind that in the 1930's, gold was fixed at US$16 an ounce. There are now US$185,000 in global circulation for every known ounce of gold on this planet. The rush for gold has already started, as the yellow metal enters Phase 2 of the greatest gold bull market the world has ever seen. In 2005, this rush is going to develop into an all-out stampede. Right now, all the world's precious metal mining companies put together have a market capitalization less than the Coca Cola company. This is going to change by entire orders of magnitude."
Nigel Maund
gold-eagle.com |
