Gold closed at an all time High of USD 1,602.10 per troy ounce

Dear PGM Capital Blog readers, today Gold our preferred investment vehicle, for the current age of turbulence, hyperinflation and shake-out of the West (USA , EU & Japan) closed a record high of USD 1602.10 an oz. as can be seen from from below chart.

As can be seen from above chart Gold has appreciated in the last 10 years with 496.57%, which makes Gold the best preforming asset class of the last decade. The first decade of 21st century (2000 – 2009) is being called the lost decade of the USA, in our opinion the USA will experience the second decade 2010 – 2019 also as a lost decade, their second back to back one.

Ladies and Gentlemen with debt up to their eyeballs and with an ever increasing trade deficit, the USA has no other choice but to dilute their currency in order to reduce the real value of their debt.

Gold is acting as the canary in the coal-mine and is giving us an early warning sign, of the disaster that lies ahead. Soon and much sooner than you might think you’ll be seeing Gold appreciating with USD 100.00 an oz a day to soar to values beyond the imagination of the common people.

When this happens, panic might hit and people might start running through the safe haven of Gold. The problem is that when approx 83 trillion USD in bonds and other Cash deposits want to flee into the safe haven of Gold for which there is only 8300 cubic meter above ground available, the price of Gold might shoot through the stratosphere like it did in Germany in 1933

During the hyperinflation period of the Weimar Republic in Germany Gold appreciated from Reichsmark 100 an oz in 1921 to 87 trilion Reichsmark an oz in 1933.

Ladies and Gentlemen for the sake of humanity we hope that history doesn’t repeat itself, but reality is showing that the West with debts up to their eyeballs hasn’t learned from this painful history lesson.

Due to this we’ll see Gold keep on shining in short to medium terms.

Disclosure:
Currently our personal financial asset portfolio is over 50% invested in precious metals, like Gold, Silver, Platinum and Palladium  

Last but not least, please consider before investing your risk tolerance and investment horizon and keep in mind that the prices of Gold, Silver and other precious metals, as well as the stock of their producers can be very volatile and that sharp correction might happen in the short time.

Yours sincerely

Eric Panneflek
Chairman

One thought on “Gold closed at an all time High of USD 1,602.10 per troy ounce

  • It’s always an effort not to turn to history as a means to predict the future. Although the current situation in US & EU do indicate a tendency to print money out of thin air, especially so in the US, this is by no means a certainty that the disastrous Weimar experience will repeat itself. Then again it could. Everything depends what decisions are taken by politicians, and it there is a profession (if we can speak of a profession when discussing politicians) for which one does not need any credentials nor any diplomas, it is the politicians. He or she may be brilliant or extremely stupid and governed by patriotism of self-centered considerations. All these imponderables must be taken into account -if this were at all possible – to anticipate the gyrations of the market. One can assume that the US will further devalue their dollar to reduce their monstrous debt. But again, the public may be so fed up with both parties, that they may vote for an Independent candidate, who may very well be a smart financial wizard with backbone, who will do his utmost to set US monetary policy right and begin fixing its skewed finances. Impossible? Nothing is impossible!
    And Europe? They will muddle through until Greece defaults and is politically forced to get out of the EU. Disaster, the experts scream? Well, yes, maybe. It can also set in motion a long-cherished idea to get rid of the whole artificially concocted EU and bring back the national currencies. True, the EU may go through doldrums, but, being what they are – SURVIVORS- the Europeans will very well get their act together. Impossible? Well.. think again.
    In the meantime, yes, do buy the precious metals, but when everybody seems to be buying the lot, GET out, because then the ‘bubble’ is about to burst.
    Enjoy the wild ride as if you’re doing a ‘bull’s’ run, but be careful when you fall off its bucking back.

Leave a Reply

Your email address will not be published.