Gold prices are flirting with all-time highs once again and investors are wondering if this time might be different. Perhaps gold (and silver) can finally break out of the range where they have been mired over the past 3-½ years?
A breakout to higher prices is, in our view, both overdue and inevitable.
However, the timing of a breakout remains impossible to predict. It is safe to say we are closer than we were three years ago, but predictions are difficult even if we were dealing with free and fair markets.
The metals markets can be looked at as a microcosm of the larger problems facing the nation. Corporations and powerful elites like things just as they are. They aren't going to make any fixes.
The reckoning is coming for deformed, stimulus-addicted, and corrupt markets, regardless of which way asset prices move in the short run.
Given that could happen at any time, it would be smart for anyone who is still all-in on stocks, bonds, and cash to diversify their portfolios into hard assets and reduce counterparty risk.
It always makes sense to avoid being totally unprepared for turmoil in financial markets. Even if that means picking up gold at prices near the recent highs and holding on if the price gets smashed.
Or investors can grab silver bullion, which is more volatile, but looks cheap relative to gold.
None of us can predict the timing of the coming collapse in confidence and its attendant havoc in conventional markets. But we can feel confidence dwindling, and we don't see anyone in leadership is talking about genuine solutions, let alone taking steps in the right direction.
Congress isn't going to pass a balanced budget. The Fed isn't going to fulfill its mandate for stable prices. The rest of the world isn't going to stop looking for alternatives to the weaponized U.S. dollar. And government regulators aren't going to save us from the sociopaths running Wall Street.
If these things ring true, there isn't much left to do but prepare.
About the Author:
Clint Siegner is a Director at Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. A graduate of Linfield College in Oregon, Siegner puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.