Gold is Not in a Bubble: It’s on Its Way To $10,000 an Ounce!

• The gold bull market is not a bubble and has not exhibited any bubble characteristics for the last 10 years! Do not let the Illuminist financial MSM fool you. It is the biggest threat to the Illuminist central banking cartel’s fiat monetary hegemony (ie. USD, Euro…) ! It is still a very under owned, under allocated asset! The sheeple are scared off by the recent attacks/psyop against gold (the safest asset in the world) and into (the false security of) US treasuries and USD! But many are waking up!
  –
  Gold is not in a Bubble: It’s on its way to $10,000 an ounce!
  by Nick Barisheff, http://www.bmgbullion.com/
  “Gold is not a financial asset to be compared with dot-com stocks or Miami condos and it is not a commodity like pork bellies or crude oil. It is the ultimate currency for the truly sophisticated wealth holder in a time of substantial unreserved credit promotion.”
  –Paul Brodsky (Fund Manager)
  –
  The recent correction in gold has once again led, to financial commentators warning of a bubble—just as they have incessantly since it first passed $400 an ounce. A bubble usually ends with day after day of speculative higher highs, not corrections like we have just seen or as we saw in August where a $200 fall was followed by the resumption of its decade long rise That gold continues to climb a wall of worry, and that so many are even calling it a bubble, is actually an extremely bullish indicator since financial bubbles burst only after sustained periods of exuberance. We are far from the days when people lined up for blocks each day to buy gold, as they did in Toronto in 1980.
  –
  A simple rebuttal, however, is never enough when discussing gold. It will continue to be subjected to the most aggressive “perception management” assault of any asset class, because it is a direct challenge to all the world’s fiat currencies. Since no paper currency is convertible to gold at this time, this is some challenge. The warnings of bubbles and the many other reasons for not owning gold will continue unabated as gold persists to $10,000 an ounce, or higher. Independent study of the underlying causes of gold’s rising price, in my opinion, is the best way to gain sufficient confidence to buy and hold gold long enough to protect one’s wealth through the turbulent years ahead.
  –
  This is the premise of my upcoming book, $10,000 Gold—Why it will get there sooner than you may expect. In this article, we will look at three of the most significant reasons why gold is not in a bubble and will continue rising in value for years to come.
  –
  There are two ways of looking at gold. The first is the Western way, viewing gold through the lens of fiat currency training. This approach sees gold as a wealth-gaining asset that can be traded like any other asset class or commodity for currency gains. The second way is how the world’s major gold buyers at this time see gold. The Chinese, Indians and Middle Easterners see gold as a wealth-preserving asset that serves the purpose of money. The second group will ultimately be responsible for driving gold into the five-digit range. Many of these people have had direct experience of the damage to one’s wealth a currency crisis can cause. The most aggressive buyers, the Chinese, experienced 4,000 percent inflation per month between 1947 and 1949.
  –
  If gold were a commodity it would be in a bubble, but it is not. Gold has been money for over 3,000 years, and still is today. Although never officially recognized as such, gold trades on the currency desks of all the banks and brokerages, and is held by central banks. Since 2009, central banks have become net buyers of gold. Pension fund manager Shane McGuire makes the point in his book, Hard Money: Taking Gold to a Higher Investment Level , that gold and silver are really the newest asset class, not the oldest, since until 40 years ago they were money. Many readers will remember a time when silver dollars were exchanged in stores at face value.
  –
  To step outside a fiat mindset, we encourage our clients to think in terms of ounces of gold rather than dollars—a task that is much easier to do when one owns gold. We encourage them to ask questions like, “What is the risk in ounces of an investment?” and “How many ounces can I expect to gain in return?”
  –
  This perspective gives us the single most important insight into gold’s true behaviour, as it tells us that gold is not rising in value—currencies are losing value against gold. This means that gold, as money, can appear to rise in value as far as currencies can fall. In light of this, we can look at three features of gold’s rise that tell us it is not only not in a bubble, but unless current monetary policy is drastically changed, it will almost certainly rise to $10,000 an ounce and beyond.
  –
  …. for the full article click here!

end