Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Understanding Gold (and Silver) Comes from the Heart, Not the Brain

Commodities / Gold & Silver 2019 Dec 20, 2019 - 03:47 PM GMT

By: MoneyMetals

Commodities

The title of this essay is part of a statement made by Stewart Thomson, editor of the investment letter, Graceland Updates. His full comment reads, “It takes more than viewing charts and government debt numbers to understand gold as the world’s ultimate asset. What it really takes comes from the heart, not the brain.”

For thousands of years, humankind has understood the magical draw (and sense of security) that owning precious metal can bring.

It satisfies the core requirements that make it a medium of exchange par excellence.

It's durable. It's divisible. It's consistent. It's convenient. It's intrinsically valuable.



There's a sixth reason, which Doug Casey elaborates upon when he talks about gold's attributes above.

Unlike what David Morgan refers to as "paper promises" created at the stroke of a pen, run off on a printing press, and devalued to the point where a central bank can no longer afford to pay for the paper and ink – neither gold (nor silver) can be created out of thin air.

As Doug so ably concludes:

These are the reasons why gold is the best money. It’s not a gold bug religion, nor a barbaric superstition. It’s simply common sense. Gold is particularly good for use as money, just as aluminum is particularly good for making aircraft, steel is good for the structures of buildings, uranium is good for fueling nuclear power plants, and paper is good for making books. Not money. If you try to make airplanes out of lead, or money out of paper, you’re in for a crash.

It's why central bankers around the globe are adding gold to their "monetary" reserves at the quickest pace in 50 years. It's why Germany has – for the first time since WW II, begun buying gold. And it's why they are engaged in a multiyear effort to repatriate it from the U.S. and Great Britain, where it's been stored for security reasons since before WW II.

It's why Poland not only has been making new purchases lately, but recently took delivery of 100 tons of the yellow metal that had been in "safe-keeping" from London, since just before Germany overran their country in 1939. Why now? Maybe because, well, your gold seems to be so much more secure when you have it "in hand."

It's why small scale (artisanal) miners around the world risk their lives and health – often damaging the environment – in order to acquire even the smallest amounts of it.

And it's why you should hold some too. Reflect on the state of geopolitical affairs around the globe. Look at the trend in motion where banks are – or soon will – charge you for the privilege of saving some of the paper currency you've earned.

Forcing you to spend seed corn on things you don't need, just to keep their own financial Ponzi schemes from falling to earth.

They want to drive you into a non-cash environment where your assets are nothing more than digital entries that can be monitored as to what, when, and where you spend them. That can be "debited" by the government at will. All of which you'll have the privilege of being penalized for if you don't spend as much of your savings as edict demands.

What's the definition of a bull market? In classical technical analysis (TA), when the price of something – in this case gold (and in our discussion silver too, since the two metals' directional pricing is so closely correlated) – drop below or break up through an area that previously hosted a well-defined price level, chartists see this as something important.

Earlier this year, gold rocketed above $1,360, a level suppressing prices for over 5 years, giving evidence that it could now could move much higher. Sure enough it did, hitting $1,560 just two months later.

A second "tell" was that in breaking above $1,360, it left a large gap (area where no trading takes place), which as of this writing has yet to be filled (traded back into).

But one of the most important clues as to the staying power of a new bull or bear run is when a formation like the one shown for gold nearby is created.

A series of higher highs and higher lows tells anyone who looks at such a chart, that as long as this pattern continues going forward, the bull shows serious intentions of "movin' on up"!



The fact that gold penetrated $1,400 and then $1,500 so easily on the upside, gives us confidence that the yellow metal has the potential to challenge still higher levels during the first quarter of 2020.

Holding gold and silver in your hand will make you smile. If you've already started a gold and silver acquisition program, take out a coin or bar and hold one of each in your hand (As long as it's not a collectable coin with numismatic value beyond its metal content!).

Rub your thumb and forefinger back and forth on its shiny surface. Feel its weight in your palm. Think about how for much of recorded history these two metals have "been there" as insurance, providing a store of value during the most unpredictable and dangerous times in history.

Think about how they're recognized and accepted around the world in exchange for goods and services – maybe even for one's life! (To this day, elite military units operating anywhere on the globe carry a few 1/4 and 1/2 ounce gold coins in their kit – just in case.).

The importance of having some precious metal becomes easy for our minds to grasp, does it not? When you consider having some in your hand, in your pocket, or stored away in some safe space known only to your and trusted family members – there to serve as insurance for loved ones and yourself...

...chances are it will bring a smile to your face, and you will be able to see and feel that a true understanding of what gold and silver represents really does come from the heart.

David Smith is Senior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com as well as the LODE Cryptographic Silver Monetary System Project. He has investigated precious metals’ mines and exploration sites in Argentina, Chile, Peru, Mexico, Bolivia, China, Canada and the U.S. He shares resource sector observations withr eaders, the media and North American investment conference attendees.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in