We all have insurance of some sort, if nothing else for your vehicle and home. However, one thing remains a constant in all cases of private voluntary insurance: you have to buy the insurance before an unforeseen event takes place.
You can't buy fire insurance when the kitchen is burning down, or earthquake insurance after the foundation on your home has already been split in two. And you can't increase your insurance to full coverage after you've already driven over a cliff.
Financial Insurance is Gold
And due to suppressed prices from the central banks and governments, we have an even greater opportunity than most gold investors and speculators fully appreciate. In our opinion, these gold take downs — where mysterious sellers hit the bid with billions at odd hours of the night or during holidays — in the end are a blessing.
Let me further explain why I think we need physical gold for insurance.
In Cyprus, it didn't matter how much money you had in the bank, you could only withdraw $300 per day. After 9/11, the entire U.S. stock market was closed down for 4 days. It didn't matter if you owned shares in a Chinese tech stock doing business only in Asia, you had ZERO access to those funds. Those assets were essentially frozen. This is not the first time the markets have been closed for an extended period, either. After World War 1, the stock market was closed for 4 months!
Today, when I look at negative interest rates, I see a massive outflow of stocks, yet stocks continue to rally. I see our government doing everything it can to entangle itself in the affairs of others, like China and Russia, who have an army of hackers and digital warfare weapons. The U.S. is on an unsustainable course with its deficits, spending allocation, and military interventions, and not a single penny will ever be repaid on the balance of our national debt.
I have to say the financial kitchen is burning down. The 2008 financial crisis that was papered over was the earthquake that split the very foundation of our entire global monetary system, and when it comes to the FED, world central banks, and our own government, they've already driven us over the cliff.
The gold we own is our insurance.
It is privately held, it doesn't tarnish, and it is recognized as the one true money…
Don't believe me? Then ask the U.S. why they are holding 8,000 metric tons, or why China is buying gold bullion up by the truck load, including gobbling up gold mines all over the world. The opportunity that gold presents today is the ability to purchase financial insurance after the inevitable claim is obvious to all.
I have NO idea what the dollar will be worth in the next 10 years, but I do know that an ounce of gold will still be an ounce of gold! And the price suppression scheme is coming to end. The current bull market in gold will absolutely lead to a decapitation strike against the banking cartel, who has successfully kept the prices artificially low.
Peak cheap gold is here, discoveries have collapsed, and the exploration pipeline has been devastated by the bear market of 2011-2015. Physical supply is tighter than it’s ever been, and the global economy is now ripe for a surge of gold buying, which, when it comes to the smart money, we are already seeing them enter the sector at unprecedented levels.
This is just the beginning…