History Always Repeats … Gold Protects From Capital Controls and Devaluations

Friday, August 7, 2015
By Paul Martin

By: GoldCore
GoldSeek.com
Friday, 7 August 2015

Simplistic gold analysis speculates solely on price
Forgets vital importance of diversification
Lorcan Roche Kelly’s analysis lacks all context
Ignores huge physical demand for gold coins and bars
Today’s world is very different to the world of the 1980s and 1990s
Alas, financial crisis has been postponed not averted
Physical gold will have value when paper and digital wealth is devalued, confiscated or inaccessible

An article on Bloomberg comparing the gold market in the late 1970s – dramatically peaking in 1980 – to that of recent years has suggested that “gold could soon get very boring” and a “repeat of that trend would leave gold at around $1,000 an ounce in 2035.”

We have long noted the importance of focussing on gold as a diversification and therefore not focussing solely on gold’s price. Price predictions are foolhardy at the best of times and when we occasionally venture into that space, we are always cautious and give caveats.

What is odd about this call for gold to fall nearly 10% in dollar terms in the next 20 years is that it is completely devoid of any kind of all important historical, geopolitical, macroeconomic or indeed monetary context.

So too it completely ignores the supply demand fundamentals in the physical gold market and the huge demand for gold coins and bars today that is leading to bottlenecks, delays and rising premiums.

The Rest…HERE

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