95% Stock Market Loss … And A Can Too Big to Kick
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
Gold is going through a final correction that could last a few weeks, but the downside is limited and, once the correction is over, we will see gold penetrate the Maginot Line at $1,350 and quickly go to $1,600. It is also possible that we will see a new gold high in dollars above $1,920 in 2019. Remember that gold has already made new all-time highs in many currencies, so we will not see strong resistance at $1,920.
As always, investors should not follow the West. Since 2000, they have most probably either covertly sold or leased most of their gold to the wise people in the East. And that gold will never come back to the West.
China, India, Russia and Turkey understand the Golden Rule: Whoever has the gold makes the rules. They know that owning physical gold is the best protection against a bankrupt financial system and a failing world economy. That is why they continue to accumulate gold.
China, India, Russia and Turkey have, since 2005, accumulated 34,000 tonnes of gold (chart included). This is the majority of global mine production. These eastern countries know that gold is the ultimate protection against a rotten currency system and a failing world economy and bubble stock markets.
Who to follow: the foolish West or the wisdom of the East? Not a difficult choice.
Up for discussion: Global debt has trebled after only 19 years in the 2000s; modern monetary theory, or just more money theory; no one is prepared for the coming 95% fall in stocks; stocks must rise 1,900% to recover a 95% fall; debt implosion and erosion of productive capacity; the last hurrah for stocks; gold is finishing a correction before a major move.