Saturday, January 13, 2018

Jim Rickards Calls New Bull Market in Gold - Predicts "Gold Backed Digital Currency"

In recent articles Jim Rickards is now ready to call a new leg of a bull market for gold. He says the multi year bear market ended in December 2015 and has now been confirmed by two consecutive years of higher gold prices. Below are links to his two part article and an excerpt from each.


The Next Great Bull Market in Gold has Begun - Part I

"This new trend will take gold past $1,400 per ounce by the end of 2018, past $4,000 per ounce by 2020 (if not sooner) and ultimately to $10,000 per ounce or higher by the mid-2020s.

This bull market actually began on Dec. 17, 2015, when the dollar price of gold sank to $1,051 per ounce. This new bull market was two years old last weekend."

. . . . .

The Next Great Bull Market in Gold has Begun - Part II

"The most important piece of evidence that the next great bull market in gold has begun is the technical behavior of the prior bear market itself.

Over many decades, commodities rallies have exhibited 50% retracements (bear markets) before resuming their long-term upward trends based on the slow, steady devaluation of the fiat currency in which the commodities are priced."

 . . . .
It appears that Jim is also joining the ranks of those who believe that a gold backed blockchained based currency is coming from Russia and China. He talks about that prospect in this recent article. If this were to happen it could be a significant event in terms of how it may impact the US dollar. Here is a quote from this article:

"According to Russian government officials attending a recent monetary conference in Moscow, Russia, China and their BRICS allies are moving toward their own gold trading system (bypassing London and New York)."  . . . read more here

Added comments: Readers here know we always keep an eye out for any event that might trigger the kind if crisis Jim Rickards has long predicted. In this new article Jim lists three potential triggers to watch for in 2018. Here is a quote:

"What are some of the emerging-market snowflakes I’m watching now? The three of most concern are China, Venezuela and Turkey." . . .  read more here

I would add another potential trigger to follow in 2018. That would be some kind of major crash in the US stock market related to events surrounding the Trump Administration. We are a full year into the Trump Presidency so he is now tied in the public mind to whatever happens with the economy and stock market. President Trump has cemented that tie by constantly pointing to the huge rise in the stock market as being due to his efforts. We can expect that if the stock market were to take a sharp dive for any reason (whether related to anything the President does or not), his political opponents will point the finger of blame his way. If the markets stay strong and the economy responds well to the tax cuts recently passed, I would expect President Trump to benefit politically. If the opposite were to happen, we might see the start of a process that ended his Presidency if the public blamed him for the market crash (if the Dems win Congress and start an impeachment process). So, it is something to keep an eye on and one reason why I am giving it until mid 2018 to see if this becomes a potential trigger for systemic instability. By then it should be clearer which way these various issues (and potential crisis triggers) are going.

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