This Signals The End Of Central Banks: Epic Warning Shot

Discussion in 'Commodities Forum' started by inthemoneystocks, Jul 6, 2016.

  1. inthemoneystocks

    inthemoneystocks Member

    Mar 2014
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    Gold and silver have spiked dramatically higher in 2016. Just in the last week we have seen silver squeeze higher by 20%. It is extremely rare to see both gold and silver surging together. Why? The basics of it revolve around gold being a store of safety, while silver is mainly an industrial metal. The idea being, if there is panic gold surges but usually silver stalls or falls because the panic is due to something economic. Negative economic issues can hurt demand for silver.

    This mega spike price action on gold and silver tells of something absolutely scary. It screams to the world that investors have lost all confidence in the central banks. Whether it is the Bank of England, European Central Bank, Bank of Japan or the Federal Reserve, currencies are looked at as being far too risky. Remember, interest rates in Japan and some places in Europe are now negative. It is not normal to pay a bank to hold your money. Central banks have created this artificially. Investors now prefer to hold gold, which is normal in fearful times...but also silver. That is the more shocking part. Central bank printing presses and monetary policy have gotten so out of control that investors are willing to buy anything but currencies. Look at the price of Bitcoin as well. It is up over 200% in 2016. Again, Bitcoin (BTC) is something the central banks around the globe have no power over. It cannot be printed at will.

    Keep an eye on other metals to see if they start getting the same play. An even more economic dependent metal is Copper. If gold and silver continue higher, look to buy Copper. This could be the next store of safety from the out of control central banks. Pretty scary for investors if you hold lots of Dollars, Yen, Euro or Pound. Diversifying into other assets that cannot be printed is extremely important in this day and age.

    The end game is simple yet horrifying. There will be another epic global collapse, far worse than the financial catastrophe in 2008-2009. It will spur a global depression. All of it caused by central bank policy. As the world emerges, the central banks will be dissolved. You read it here first. This will happen in the next 10 years.

    Gareth Soloway
    Last edited by a moderator: Jul 8, 2016
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

    Feb 2014
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    I think we are starting to see what I have been expecting for years now. I don't quite think it's the end of the world though - at least I hope not. I have some money long in a very diversified portfolio of stocks and options, a fair amount in put options, a bit short, some gold and other metals, a bit of crude exposure, a good amount of cash...

    Basically very well hedged - I am always wary of anyone who is either super-duper bullish OR super-duper gloom and doom.

    And I dollar cost average into my investments every week as well.

    I try to stay largely market-neutral in the short to mid-term. I look for good companies that are rapidly growing and hopefully cheap to buy, and also for good companies that may be well-established that have become cheap due to perhaps a small stumble or a market overreaction - I've done very well in recent months buying Walmart and American Express on big dips, for instance.

    And if a stock I'm long is more volatile, I'll often protect my downside with put options. I also look for other companies that are not so good, or that appear to be way overpriced, that are broken, etc to carefully bet against.

    When I start to see the world's richest men all sell all of their stocks, bonds, etc, and put everything they've got into gold and silver, I'll start to worry. Until then, I'll stay pretty well diversified and won't be likely to dump everything.
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  3. manoharb

    manoharb Senior Investor

    May 2015
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    I believe , If we see some more progress in science and technology. Central Banks will be saved and new format can be introduced.of course, it need some time, maybe 15-20years. About metals, there is always something which is better than previous one. so Metals maybe important for Today's format of Central Banks. but progress can bring something more worthier than metals which can be fundamental of next Central Banks format. I don't want to go back in stone-age. so i'm optimistic about more progress in future. Global Growth is very important factor and I believe we are going to next step of Central Banks. not the end of Central Banks.

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