Gold Climbing The Wall Of Worry

Gold prices (weekly chart) formed an impressive inverse head and shoulders formation during a five-year base. Gold prices, which bottomed in December 2015, should climb the wall of worry.

WHAT WALL OF WORRY?

Really? You have to ask? Financial, stock market, debt and political worries come to mind:

  1. Global debt is about $250 trillion. The lenders expect to be repaid plus interest. Repayment will occur via more borrowing—increasing already excessive debt. Don’t expect this scam to survive forever. It might last another five—ten years, but why raise your risk? Gold prices might suffer, as they did in 2008, in the initial collapse, but should rocket higher. If debt can’t be repaid from taxes and revenues, default and/or hyperinflation will come. Both defaults and hyper-inflation will hurt most people.
  2. Stock markets rolled over and fell in late 2018. The NASDAQ 100 was down 23% at its low from its all-time high in October. The Index has since retraced half its loss and is down (Jan. 30) about 11%. Most stocks are down larger percentages. They call it a bear market. Remember the devastation of 2008 when debt was much lower, valuations less extreme, and the U.S. was less politically polarized. The Federal Reserve and politicians will “save” themselves and the political and financial elite. All others… well, good luck…
  3. Read “Stumbling Near the Abyss.” Read Holter: “Is This A Joke?”
  4. Signs of a credit crunch are visible. The economy runs on credit. Another 2008 style collapse is likely. Don’t expect an easy solution.
  5. Fear is replacing greed. Panic is next. People will become desperate to escape the Wall Street casino for something safe. Gold and silver are not a (dodgy) liability of another government, corporation or individual!
  6. Interest rates are rising. The yield on the 10 Year Note bottomed two and one-half years ago. Central banks are raising interest rates and removing currency from circulation. The yield curve is flashing recession warnings—which means larger deficits, more debt, bankruptcies and job losses.
  7. Based on risk and reward, stocks still look dodgy while gold and silver languished for over seven years and are ready to rise. Expect reversals.
  8. Add your own fears—there is no shortage of worries.
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Miles Franklin sells silver. Call them at 1-800-822-8080 and tell them you agree with the Deviant Investor about silver.

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