Debunking The Bogus Case Against Gold
The comments below are an edited and abridged synopsis of an article by James Rickards
Gold is in the early stages of its third great bull run that will take it to record heights.
The first two great bull markets were 1971-1980 (gold up 2,200%) and 1999-2011 (gold up 760%). After peaking in 2011, gold fell sharply from that peak to below $1,100 per ounce by 2015.
Now the third great bull market is underway. It began on December 16, 2015, when gold bottomed at $1,050 at the end of the 2011-2015 bear market. Since then, gold is up significantly, but it’s small change compared to 2,200% and 760% gains in the last two bull markets.
Still, most mainstream economists dismiss gold. They say it has no place in today’s monetary system.
Jim points out the three main arguments mainstream economists make against gold (there’s not enough gold to support the money supply; there’s not enough gold to support global trade; money doesn’t offer yield), and why they’re dead wrong.
Currently, the third great bull market in gold is underway, and Jim predicts that the yellow metal will reach $15,000 by 2026. Of course, nothing goes up in a straight line and there will be pullbacks along the way, but the trend is upward.
Jim believes the primary way every investor should play the rise in gold is to own the physical metal directly. He says that at least 10% of your investment portfolio should be devoted to physical gold—bars and coins primarily.