Last summer, when I realized there would be a continuation of the Federal Reserve's quantitative easing forever, I made a call that the four main asset classes, due to their real and tangible value, would hit a resistance level that once broken would take finance away from the dollar for good. I called this, for lack of imagination, 'The Next Move'. The levels for the next move have serpentined in and out like a rumba dancer moving across a stage. When one hits, another takes a dive. When two hit, two take a dive. The Next Move has almost lined up numerous times. When it does, people will realize what a real asset is, and they will never forget.
The reason all "Four Horsemen" have to line up has to do with affordability and investment opportunity. When one of the Horsemen stays below the range, monie is allowed to spill into it and not disrupt finance. This all has to do with liquidity. Finance is begging for a Horseman to stay in an affordable price range, or else the system will not be able to afford investment.
The levels that were chosen: Gold at $1440, silver at $36, platinum at $1800, and oil at $105. To be specific, an investor has a hard time buying gold at $1500 when oil is costing more than $105. It is not affordable to buy silver at $49 and platinum at $1850, when one is trying to establish a position in other sectors. This is why once the Next Move is totally breached, it will bankrupt the investor class. Once the financiers are bankrupt, reality will wake the Horsemen, and they will kill the dollar.
This does all hinge on the fact that the dollar is not a real investment. It is a one sided trade; all it does is create debt, it does not offer a proper store of wealth. The Horsemen know this, and once the gate opens they will stampede the dollar into the dirt.
Can we hurry it up just a little.
ReplyDeleteAnd speaking of AG, I have nothing but a very strong feeling that forces are gathering beneath the AG bandwagon as I write... Ready to take it to $80 by years end.
ReplyDeleteSounds crazy maybe, but geeze it's $80 stinkin' bucks.
That's nuthin' and they know it.
GSR of 1:15 gives you $100/oz Ag at $1500/oz Au. Sprott and others think the ratio may overshoot to 1:10. Yep, I think $80 is a safe bet.
ReplyDelete