January 17, 2020 | Gold Finally the Investment of Choice! Why?

I am attending the Metals Forum in Vancouver along with a crowd of some 2500 investors. This is a record crowd for this Metals Forum. Last year the crowd was much less and the tone was much more uncertain. Today, the speakers all sense that our Fed will create whatever liquidity is needed to prolong the bubble economy. This means that Gold will be the choice of millions during this period (some say three or four years).

Eric Coffin, economist, thinks that the Repo market reveals the lack of demand for U.S. treasuries and this means our Fed will buy whatever amount necessary to prolong the bubble markets. This could continue for some time as our central planners have no real alternatives given the nature of these markets. All this is great for a safe-haven commodity like gold.

Tomorrow, I will listen to another group of pundits and then I attend the Vancouver Resource Investment Conference on Sunday and Monday. Lord Conrad Black will address this group (could be 10,000) on Sunday. Investment in a turbulent world is the title of Mr. Black’s speech. I look forward to this speech and the insight of this businessman, politician, criminal, investor. I think the conference hall will be packed.

Some 150 pundits will speak at this VRIC over the two days. My sense is that gold will be a subject which most will address. We could now be in the last hurrah for safe-haven investments and even gold will vanish down the road as all digital assets plunge to near zero. All this is on the horizon the the next few years IMO. Our Fed and the other central banks will attempt to reflate these bubble markets but investor’s may short all the plans of these central planners.

We are living in dangerous and interesting times. Even my millennial friends are now saying that these bubble markets are over-extended. We could witness some volatility these next six months as traders and investors change their portfolios and seek out new safe-havens for their savings. Even Mr. Buffet is changing and going to cash (so it seems). Will our plunge protection team over-ride the sentiments of average investors so as to prevent the coming crash?

We should have much more data by the end of 2020. The markets will eventually rule over our central planners and their daily manipulations. But for the time being, we could witness more of the same to prevent these bubbles from deflating. Watch the Fed, the ECB, the IMF, and the Bank of England for signals that reveal their plans. It could all happen in the next six months. Have a great day and take the time to think for yourself on all these difficult issues.

I am: https://kingdomecon.wordpress.com.

Don Swenson January 17th, 2020

Posted In: Kingdom Economics

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