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December 9, 2016 | Gold Headed Lower Under $1,000 into the Abyss

Martin Armstrong

Martin Arthur Armstrong is the former chairman of Princeton Economics International Ltd. He is best known for his economic predictions based on the Economic Confidence Model, which he developed.

GOLD-Text

India is moving now to confiscate gold after going after the cash. Currently, each married woman is entitled to 500 grams, each unmarried woman 250 grams, and each man 100 grams of gold. Everything that goes beyond is classified as illegal possession and thus will be confiscated. There is no restriction on the possession of the jewelry only if the jewelry was purchased by inheritance. Prime Minister Narendra Modi is giving more power to tax authorities rather than dealing with corruption. They will be shaking people down for money. Unlike FDR who confiscated gold from the banks, Modi is allowing the tax people to go door to door.

This is the problem I have been warning about with gold. It is losing it safe haven status for it is getting to the point you cannot travel with it, keep it in a safe deposit box, or show gold with jewelry. In Italy, if it looks like you have excessive jewelry, they pull you over and weigh it at the border.

This is all part of the Hunt for Taxes. India is setting the tone. The danger will be if others follow. Trump would stand in the way of such policies in the United States. But in Europe, we may see the same policies take effect to different degrees. All they need do is claim that terrorists are using gold to fund their operations.

Everything is still on target for the move under $1,000 into next year.

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December 9th, 2016

Posted In: Armstrong Economics

One Comment

  • Avatar Phil says:

    Good afternoon Martin I hope all is well,

    in the your most recent interview you mention that gold would be priced in the area of 5000$ within the next 2 years now your stating a complete opposite point of view . Could you clarify your Postion,,,, i have taken a large position because of your Global overviews and now you have left me completely confused.

    Best regards always,
    Phil

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