Loading ...For several years I have spoken of the necessity for a “re set”, the Swiss have now begun this process officially or by decree if you will. Many have laughed as I have written the scenario of going to bed with $1,500 gold and waking up to a bid of $4,000 gold and none offered. This is exactly what happened to a smaller degree with the franc/euro cross. It only took 5 minutes for a 30% move to occur. Why do question this cannot happen with gold? Did the Swiss not artificially depress the value of their currency by implementing the peg? Have we not shown you time and time again, evidence of gold price suppression? Is there any difference?
I remind you, the “door” to gold is a very small and definitely finite one. There is only so much of it. There is only so much of it “willing” to be sold. Another aspect is the newfangled “fractional reserve” position of gold. In order to suppress price (the truth), 100 paper ounces have been sold for every one and single real ounce. We will see not only panicked investors looking for safety trying to get through the golden door, we will also see those who previously “thought” they owned gold jamming the entrance.
When it becomes no longer desirable, tenable or even possible to suppress gold, what do you think will happen to price? You have already seen your answer from the Swiss. It is for this reason I have harped that “trading” in and out of gold is very dangerous. You can make 100 trades, 99 of them profitable (good luck with this percentage!) and be “out” on just one… the wrong one! When the re set of gold’s price takes place, you will either be in, or you’re out. If you are out, you will not be allowed back in until whatever “clearing” level is found. My guess is this clearing level will be multiples of current price! By the way, no one will tap you on the shoulder and tell you “when” this will happen but rest assured, the price of everything will be re set versus gold.