Loading ...Either I need to switch over to decaf for the morning brew, or stop reading/listening to the news because it sure seems this ole world is in a hell of a mess. China has problems, Japan’s financial situation is in dire straights, the EU is nothing but a can of worms from domestic to financial issues, and the list goes on. The Media can Talk it up, paint it up, however you wish, its still lipstick on dead pig.
Gold, the much misaligned and beaten down canary in the mine is trying to have its say of late. And I think it is gaining some unusual suspects in these interesting times. The liquidity of the ‘All Hail The Printing Press’, is of little help today. Kinda like pushing on the proverbial string. The major world players, the largest of the economic engines, cant gather any steam even with negative interest rates. Debt worldwide continues to swell into comprehensive levels making untrue the old saying “the sky is the limit”.
I have been doing some reading of late and it would seem that some big players are about to get behind the next leg up in the Gold markets. Players that have in the past mostly avoided investing in gold like pension funds. Those mega billion funds are in search of, desperately in need of, some high yielding returns and I think gold is going to offer them such a life line. Those funds need a replacement for those once lucrative RIETS during the real estate boom. They might not be the sharpest knife in drawer, but I think they are viewing with great interest the fact that China, Russia, and Central Banks are buying gold like never before. And from a few snippets I have picked up it does appear that the pension funds are ( are you ready for this…) buying gold! Who would have ‘thunk it’? Gold bugs may have some strange new comers to the Gold Train.
And I am wondering this morning what will be the effect of that Overseas Bank Scandal? If I was one of those folks named, or even not named, I think I would be tempted to just convert all those hidden accounts into physical gold and bury it in my back yard were no hacker could divulge my ‘secret holdings’. Surely they have some extra space aboard their mega yachts for some ‘golden ballast’.
I have dusted off the crystal ball and looking into the future. Two to five years out, I think the Goldbugs will be a very happy bunch !
Golden Trails to all, Farmboy