Gold and Silver Demand Will be fueled by Industrial Demand, Oil crashes to 18-year low – March 30, 2020,
Well, some very interesting times happening in the world and if you’re into Oil, Gold, Silver, and Bitcoin, you’d be wise to at least consider what I have to say. To make my position clear, I’m not a FIRM believer in a Gold-backed currency, personally I believe money should be backed by whatever people are consuming the most.
This is not to say I’m against communist-style central banking with a government-backed fiat monetary system, but I see money and the financial sector as an idea backed by intelligent people. Intelligent people all over the world now, aren’t opposed by the concept of fiat money, because currently, (as of March 30, 2020) fiat money can buy tangible things and a lot of people have their wealth stored r the basis of their wealth valued next to fiat dollars.
For the most part, it’s an accepted practice that fiat dollars backed by oil and a countries ability to protect its interests in oil. Furthermore, humans preferrable gravitate to countries in which PROPERTY RIGHTS are respected.
If you reside in a country in which your property could be confiscated simply because, the people at least on the surface aren’t opposed to authoritarian democracy, well in that circumstance, the country in which you reside regardless of how powerful it is, will not be a preferred destination to leave your property or store your assets.
I say this firstly, to explain to you why during the coming financial crisis, certain countries in which you can name for yourself, will not be beneficiaries of a crash, nor will it be wise to assume your assets have any value there. If let’s say you ave a lot of Gold, but you stored your Gold in communist China, your gold could easily become a liability if you try to liquidity any of Gold, while the Chinese Communist Party seeks to flex its muscles during an economic downturn.
If you live in a Western country, do not assume, that your government won’t turn on its own people, this is, of course, the problem with immigration, it’s not that the humans look different, it’s that newly the imported voter class might be accustomed to authoritarian rule and assume that Western culture is nothing more than a farce and will this newly minted voter class will instead do what many white people have done to create this mess which is to pick the political lesser of two evils, except that the newly arrived voter class, will more then likely pick the politician likely to win that promises them an easy fix to what is now a complex problem.
If you’re a buyer or hoarder of Gold Please Read This…
I get that many of you believe in a Gold-backed currency, and who knows, maybe dollars will be backed by Gold in the future, but, this current global economy revolves around Oil or Oily-plastic as I say sometimes.
Plastic will outlast most humans, plastic made before you were born, might still be here and still might be in use after you die. The problem with Gold and Silver in a growing economy is that it becomes sort of a central bank all on its own. Hoarders of Gold and Silver become problematic when industrial demand needs to consume it, that’s when these gold and silver speculators are met by politicians who get calls from industry to do something about these specualtors.
Now, a quick reminder that Gold and Silver are recyclable, when some people have you believe that silver as an example is simply being burnt never to be seen again, it’s not like that, your local junkyard might have more silver that they got for free than you spent tens-or-hundreds of thousands of dollars that you paid real money for.
Basically, what I’m saying is the demand for Gold and Silver will drop and if let’s say Gold and Silver become money, a lot of Gold and Silver mining companies the larger ones at least will more than likely be Nationalized in some way, especially in countries that don’t believe in Western Values.
Although you might live in a country that respects property, most countries don’t. Furthermore poor people, hungry people reach a boiling point and eventually politicians will point the blame at you, gold hoarders. It’s happened before, it will happen again.
I say this because we will meet a point in which industrial demand for Gold and Silver clashes with retail demand and when you recognize this occurrence you’d be wise to sell when you believe the price has multiplied to where you’ve made a tiny profit in fiat dollars.
Bitcoin and the problems I see with the Bitcoin wallets
I’m beginning to see why central bankers are seeing an opportunity in Bitcoin and crypto-currencies, those bitcoin wallets present an opportunity for brokers and middlemen, sure you can store your bitcoin in Hardware, but ultimately you’re stuck. Yes Bitcoin and cryptocurrencies, in general, have more integrity built into their system than does or backward, fiat-central-banking scheme.
But… Bitcoin is traceable, a central authority give follow anything you do and when you start making purchases, namely large purchases with the same sources over and over again, well, you don’t even have the cash to stop entities from following you around.
Because remember, even if Bitcoin has a physical cash element to it, every transaction in Bitcoin has to be accounted for to complete the Block-chain, so even if particular parties decide not to put the physical bitcoin back into the blockchain, people monitoring can ask you what happened to your physical cryto-currency when you withdrew it on let’s say March 30, 2020.
Sure you can say, none of your business, but let’s say a major crime happens? What do you think will be the likely outcome? So I have to be honest when I say that I see crypto-currencies currently as a currency that aligns with the fiat monetary system.
Oil is money and the price of oil is on the decline – Comprehending Austerity measures
My opinion is that the global economy is deflating, and if the perception is that fiat money is tied to the price of oil and most of the world’s oil is priced in U.S dollars, well, even if you’re against the mere concept of U.S dollars and the Federal Reserve, there appears to be a sucker’s rally occurring.
My personal unproven theory is that the debt is going to be renegotiated and once the U.S renegotiates the U.S debt, the world will follow suit, now this will fuel higher interest rates, however, the real elephant in the room will be exposed one way or the other. That elephant is called the public sector.
Let’s say you have a country that makes $100 per year, but let’s say it costs your country via its public sector $500 per year to make that $100 per year in profit.
Yes, my dear reader, that’s the dilemma when you raise interest rates, and it’s this factor by I think the U.S looks a lot better then a lot of other countries. I think Switzerland looks good, Singapore looks good a few other Scandinavian countries look good too, but countries like Canada, France, Italy, Spain, China, and most Latin American countries, well yeah, I hope you get the point.
Life isn’t fair, but the American military is the police force most countries are currently willing to finance, I’m not saying it’s right, I’m just telling you what it is. Even if you like China, do you really want the Chinese building your countries infrastructure and patrolling your borders? A lot of African nations are regretting the deals they signed with China, which by the way is a predatory lender.
and yes, of course, I’m ignoring all the other domestic financial problems in China! If you don’t know China is overleveraged well you’ve probably been bought and paid for by the Chinese Communist Party.
This again is why if debts are renegotiated, China is in for some serious economic problems, which I believe will topple the Chinese Communist Party. I think Trump could be the President who renegotiates America’s debts which allows the economy to deflate, but I also think Ted Cruz could do it too! I’ll be writing more about Ted Cruz after the 2020 election.
The bottom line is the price of oil is falling, which is an indication of deflation, now, as dumb as this may sound if you get some of that free cash from the government as a citizen you’ll want to sit on it. If you get it via a loan for your business, be very careful, because the price of that money might have some strings attached.
In the game of money, they’re playing hot potato, what sucker is going to be left with expensive cash in a deflated market! If you hoard gold and silver, if you don’t have a number in which you sell, be prepared to hoard it until the bitter end!
Oil crashes to 18-year low as broken market drowns in crude | finance.yahoo.com
Interesting times ahead!