98,750,067,000,000 Reasons to Buy Gold in 2018

Thursday, December 28, 2017
By Paul Martin

By: GoldCore
Thursday, 28 December 2017

– World equity index market capitalization touching distance of $100 trillion dollars at beginning of December
– Key indicators across global financial markets are looking decidedly bubble-like
– Little indication that we are through the worst of the financial crisis that started in 2007
– Apparent lack of concern regarding the over-heated and overpriced markets
– Since financial crisis gold has climbed nearly 124% in EUR, 190% in GBP and 98% in USD
– Goldcore’s latest podcast covers gold’s role in 2018 in the land of bubbles

Earlier this week Yahoo! published ‘2017: The year the financial crisis officially ended‘. In it the author points to record-high stocks and cryptocurrency surges as some of the key indicators that the latest financial crisis is tightly wrapped up and now destined for the history books.

Sadly we don’t agree. Neither does Bloomberg. At the start of the month two Bloomberg journalists explained why they were ‘worried about 2018’. In simple terms – there are so many bubbles on the horizon its not worth stopping to count them.

For both Bloomberg and Goldcore the existence of stock market highs and surging assets that are as yet unproven and untrusted are key signs that we are in bubble territory.

These bubbles exist alongside ‘irrational complacency’ (see the Yahoo! article for an example of this), especially in the case of central banks. These money printers rarely like to acknowledge the asset bubbles they create. However it is without doubt that the last decade of unconventional monetary policy has amounted to a $20 trillion monetary stimulus that has pumped up these bubbles.

These bubbles now threaten financial stability. As the Bloomberg article (reproduced below) explains, there are suspiciously few mentions of ‘bubble’ in the financial media at present suggesting that we’re not as prepared for them as we should be.

This is not something that can be ignored and it is arguably hard to ignore. One could perhaps argue they are blind to bubbles as they are not seeing any indication of inflation in wages. This is true, but financial asset price inflation is clearly there. We are exposed to the risk of several market crashes – in equities, bonds, and credit markets.

Sadly financial tipping points rarely come from the obvious culprits. Often the catalyst is a seemingly innocuous event, one which in scenario planning is barely considered. This is why investors and savers must prepare their portfolios for both the unknown and inevitable.

This is where gold comes in. The safe haven has stood strong and held its own in the face of pumped up asset classes, low interest rates and increased risk. This is largely thanks to its sovereignty in the marketplace.

As we have repeatedly stated gold carries little counterparty risk and serves as a form of financial insurance whilst the walls of both the political and financial system grow increasingly weak.

It is a myth that 2017 is the last we will see of the financial crisis. The trigger to the collapse may well be different to that which took place a decade ago but the signs pointing us there are very similar. Gold’s long-term rise and strong performance will not be over for as long as we continue to ignore the hot air we keep pumping into the marketplace.

The Rest…HERE

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