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Armstrong reminder re gold now and different gold later ... (the second chart flips to gold in different currencies, and indicates the souls saved so far so good)
Many people are very confused with inflation soaring, gold has failed to respond. I have tried over the years to dispel all the myths about gold that have been created as sales pitches to sell gold to widows, orphans, and hard-money people who believed that paper is just evil. Gold will rise when confidence declines in the US dollar. The constant nonsense that paper is evil has trapped so many into tremendous losses. Whatever money might be from cattle, bronze, silver, gold, or even clam or cowrie shells, it is always a battle between what is ever used for money v assets. As long as the vast majority of people believe in the dollar, then it does not matter what you believe.
My father was a colonel under General Patton from North Africa all the way to Berlin. The German General Erwin Rommel faced Patton. However, he had written a book on tactical warfare. Patton studied it and knew what he would do. When he beat him, he boasted - Rommel, I read your book! My father always taught me that it did not matter what you believed, all that mattered was what your adversary believed. This is very true here in gold. Forget the hard money indoctrination. Until the major sees evil in the dollar, they will continue to seek cash over gold.
Moreover, I was the first International Adviser because I had focused on forecasting currencies from the '70s. Having clients around the world has taught me that Adman Smith's Invisible Hand will indeed always work in every condition just as politicians will always act in their own self-interest. Investors will also react to their home currency and they will buy or sell whatever instrument there may be involved based entirely if it is going up or down in their home currency in which they are taxed.
A REAL BULL market only takes place when gold or whatever instrument you are looking at is rising in terms of ALL CURRENCIES. Right now, gold is not making new highs in US dollars. But it is rising in terms of many currencies because they are witnessing a dollar rally. Hence, it is foreign buying that has created the paradox. Gold should be declining back to the 1400 level in a normal market. But it has been holding generally because it is rising in many foreign currencies.
Next year is a Panic Cycle in gold. So be patient. We will be looking at this for the WEC and provide a detailed report.
