Paper-Digital Gold vs Physical Gold – Why The Price of Paper Gold Will Be Coming Down TEMPORARILY and why should hold onto your Physical Gold – September 15, 2021,

Gold is money, but as we’re in the baby stages of capitalism Gold is insurance, and quite frankly with socialism on the rise, you should be glad that Gold is insurance. With that said, most of the gold purchases are being made using DEBT, and these purchasers are purchasing Gold in hopes of a quick flip.
 

unfortunately for many of these people, the economy is deflating, now when I say the ECONOMY is deflating, most people will say “wtf are talking about, prices are increasing?” Yes, prices in FIAT dollars are increasing, the price of Bitcoin has been increasing, but if you know that Gold is money, you also know that fiat money is a confidence game.

Now, what separates the Federal Reserve from other central banks of the past, is that the Federal Reserve is not in charge of the DISTRIBUTION of money, the retail banks, and the US Federal Government is in charge of the distribution of money, we’ve now reached a period in which making a PROFIT in the real economy is getting harder and harder, but making profits in the PAPER or DIGITAL economy is getting easier and easier.

I prefer to call the stage we’re in “LATE STAGE SOCIALISM” but you can label it whatever you want, the retail banks are only lending to the people it deems worthy of it, and the government the overlord of malinvestment, so the governments are propping up people ad entities which don’t deserve to be propped up and it may surprise you that some of these otherwise BANKRUPT people and entities are invested in Gold, but they’re not invested in Gold for insurance, they’re invested in Gold for price appreciation.

People who aren’t in debt forget how the people who are in debt TYPICALLY think. Most people in debt invest like they’re in a casino, not realizing that house always wins. In the paper/digital markets you’re investing for Fiat dollars appreciation, but there comes a time while you’re indebted that your costs start rising.

If you have money, the casino owner will give you all sorts of FREE perks, but the moment you’re no longer a high roller, those FREE perks go away and costs you didn’t think about in the past start to accumulate quickly and if you weren’t providing any value to the markets, your cash flow will turn upside down, because again fiat cash is a CONfidence game.

Gold isn’t a confidence game, Gold is a metal it has purposes outside of government. But there comes a time for buying opportunities, before an economic collapse and I think that opproutnity is coming.

Now, by crash I mean that the U.S dollar could hyperinflate or deflate, it doesn’t matter because if they inflate the U.S dollar Gold prices are going up and if they deflate the U.S dollar Gold prices are going up.

The U.S dollar and most fiat dollars of the world have decoupled from labor, meaning that we’re headed for a world of price discovery, but before we get to that place, most companies are going to have REDISCOVER prices and this will lead to a Gold selloff because most companies without the assistance of government are underwater and during a hot FIAT price inflationary environment, the cost of doing business might keep going up, thereby putting Gold on the backburner until there’s a new price discovery.

Once this new FIAT price discovery occurs, the fiat price of Gold rises to match it. Unless the government engages in austerity measures which I believe is unlikely, even in the event inflation is transitory and FIAT prices start coming down, Gold may still go up, especially if tranistiory inflation equates to interest rates remaining at zero.

Costs aren’t coming down even if companies start going bankrupt, because the government in most industrialized nations is TOO BIG. Government is a fixed cost on society and as we all know government can manipulate how inflation is measured to give itself a pay increase. So be warned it shouldn’t surprise you if the PAPER or Digital gold markets come down, if you own Gold and there’s a PAPER-GOLD selloff if I were you I wouldn’t sell, this will actually be a buying opportunity.

There are a lot of companies that will have to go bankrupt, that’s where we are right now, expect the government to continue to pick winners and losers, but don’t be surprised when Gold shoots up to $2500 and stays there and then $3000 and stays there and then $5000 and stay there, physical Gold will be in short supply, the paper Gold markets on the other hand based on my research in the very near future, might be forced to decoupled from the physical Gold markets, this might not make any sense now, but it will in the future.

Unless you’re broke, you DO NOT want to sell your physical Gold for fiat money. DO NOT sell your physical Gold for paper instruments., this coming period of a potential Gold selloff will be the result of indebted companies not having the ability to SERVICE their loans.

The coming rise in fiat prices are going to lead to massive economic deflation, which is going to trigger a Gold selloff for people and entities who are overleveraged! This might go on for months, this will be the Gold buying opportunity of a lifetime!

Interesting times ahead!