Loading ...Gold Miners
QUESTION #1: Dear Marty,
I just read your recent blog mentioning Gold and am looking forward to purchasing your forthcoming Precious Metals Report. I have a few questions and was hoping you could address them in your report?
Gold hasn’t backed our currency since 1971 and Silver has not been currency since 1964 – yet because of inflation both precious metals have performed very well.
If we are not returning to a Gold Standard – is it still possible for Gold, Silver, and Miners to still continue performing well?
Do you see Silver and Silver miners performing well in New Green World order because of Silver uses as a industrial/techno metal?
Thank you,
TC
QUESTION #2: Marty, you were correct that the gold ratio was going to flip and buy silver v gold. That was an amazing call that the gold bugs never saw. My question is, do you see this ratio continuing to expand as these crazy people focus to regulating gold but not silver?
HT
ANSWER: There was no way a bull market would continue with gold rising and silver trailing. I pointed out that all bull markets have the ratio moving in the opposite direction which has now come into play. We need to close September below 8170 to confirm that the high on this ratio is established and overall, silver will gain on gold.
A lot of people have put faith in Buffett buying about 21 million shares of Barrick Gold. Buffett is an old school and a value investor. That is not very credible for the future nor does that work short term. True, value investing pays off in the long-term. Those who tried that during the Great Depression still went bust because stocks get overvalued and undervalued over time. Nevertheless, the main overhead resistance stands now at the 41 and 45 levels. We need a closing for September above 28.50 to keep the upward momentum or we will retest support.
Needless to say, I do not see this New Green World Order succeeding. It will unleash huge civil unrest and this can lead to a revolution in many countries. International war seems highly likely because the LEFT’s core philosophy is a dictatorship and they do not believe in freedom. It is their way or war. They cannot tolerate and exception or their grand plans fails. Hence, they are determined to get control of the USA so they can then threaten China and Russia to submit to their agenda.
The risk for gold is more regulation because these people need to control the monetary system but using MMT. They are canceling currency and if the Democrats win, they already have proposed a digital dollar. They will not tolerate gold and private cryptocurrencies to circumvent their grand plan.
If Trump wins, there will be a flight to the dollar as the overseas elections next year become crazy. But even a Trump win on November 3rd, the Democrats are counting on mail-in ballots their studies show will be 40% more Democrats who vote in that manner which seem to be because they believe that COVID is life-threatening. Ther4efore, between now and January, it seems there will be political fighting and allegations of fraud and probable petitions to the Supreme Court.
That all said, assuming the New Green World Order with their cancellation of currency will most like to restrict gold and could even use FDR to justify confiscation. They could get away with that along the lines of the theory behind Eminent Domain. On June 23, 2005, in a 5-4 decision, the court ruled that Connecticut’s law allowing private land to be taken for private use did not violate the Fifth Amendment’s public use clause because the land was taken in order to “promote economic development.’’ The land was New London’s to give to the NLDC.
Under that theory, they could confiscate gold, but they would have to pay you the fair market value. There is an absurd risk that since the gold was NEVER demonetized in 1971 when Nixon simply closed the gold window under Bretton Woods, extreme leftist Democrats could pass a law that you must turn over your gold and they would compensate based upon the office rate of gold which remains $42. This would be really nuts, and I would not expect that without fierce opposition. If Congress enacted such a statute, then the Supreme Court would have nothing to say. Without such a move, then they would have to pay fair market value as in Eminent Domain.
Consequently, the miners would not be in the same position as they were in 1934. There, the government took the gold for we were on a gold standard. The Democrats will adopt MMT – not gold. The question of gold miners could be twisted into aiding money laundering if they outlaw gold but if gold is restricted and still legal, then the miners will be regulated since gold was not formally demonetized and the government could then argue they are a bank.
It all depends on the craziness we see under this New Green World Order. They are obsessed with reducing the population and all money should be digitized to end “crime” in the underground economy.