Nothing please me more than to see big money go nuts and open the gold market to exceptional opportunity. Posted by James Randolph on March 21, 2011
Panic on Wall Street = opportunity in the gold market.
March 21, 2011 – Nothing please me more than to see big money go nuts and open the gold market to exceptional opportunity.
It goes without saying that the disaster in Japan will have serious and long-lasting repercussions for the global economy. After all, they are third next to the US and China. And I agree that now is a pretty good time to get out of equities and rush to safe harbor. But just look at where big money is heading.
The Swiss franc makes sense, but the Swiss economy can soak up but a tiny fraction of the demand. And the yen? Believe it or not, it is rising against the dollar. But the euro and the pound are falling? How about a rise in US Treasuries, just when the Fed is expected to pull out of the market and the Japanese are expected to do likewise to repatriate their investments?
And oil futures. Japan has no recourse but to replace lost nuclear energy with oil for the medium term, and yet oil futures are down. Stranger still, in the rush to safe harbor investors have even abandoned the one proven provider of that – gold.
That’s the way it goes when humans panic. Common sense falls prey to emotion and they become totally unpredictable. They all want the same thing – security – but they lose sight of what is secure in a desperate bid to unload everything. And there is nothing wrong at all with capitalizing on their foolhardiness.
The situation is really very simple. There is great uncertainty in the months ahead. And there is one asset that has proven throughout the centuries to preserve wealth through uncertain times: gold.
Profiting from buying certified gold today is not taking advantage of the Japanese disaster, it is profiting from the knee-jerk reaction of big money investors.
Senior Staff Writer – Certified Gold Exchange