The Seven Pillars of Gold
The comments below are an edited and abridged synopsis of an article by Byron King
You need to own gold, and you need to own shares in companies that find and mine it.
Byron presents the Seven Pillars of Gold, and notes that there is some overlap between each one. In fact, many of the reasons to own gold segue back and forth, bumping into each other. But it’s possible to lay out seven distinct ideas:
- Oil prices are rising.
- Interest rates are rising.
- The petro-yuan.
- Currency wars.
- Tariffs, sanctions and potential trade wars.
- War
- Peak gold.
When Byron looks at the landscape for gold, he sees the results of the lack of past exploration and development, and in consequence, few new mines coming online.
Gold output globally has plateaued now, it will likely decline in the years ahead. The result will be higher prices for gold, and for companies that mine it. So there are 7 reasons why gold prices are geared to rise, benefitting metal owners and well-run miners.
Gold is in a breakout pattern, awaiting its moment. The price has been dammed up for a while, via all manner of manipulations. But that golden dam is ready to break.
All the debt, the bad policy, the war dangers, the lack of investment and new output… It’s a prime setup for buying power to rush into the precious metal space.
And if you’re not already invested when the move begins, you’ll wind up chasing momentum.