Why $1,500 Gold Won’t Wake The Masses And What Will Do The Trick
Gold crossed $1400 for the first time ever on Monday. If you read this blog, you know I’ve been predicting this, as I’m predicting it goes way higher. Unfortunately, the course is set and it’s a course that is a terrible course for this country, but also a course that will force the price of gold in US dollars to go much higher.
Amazingly, as the gold price rises and crosses another $100 mark and then another, still the public largely ignores what is happening in gold. I predict that even if $1500 is crossed in a similar manner, still the public will not pay attention.
So, what will cause the public to wake up?
There needs to be a major event to wake up the public. Something like a major currency crash, or something that causes gold to spike literally $100 or more in a single day. Something big. Something to freak people out. Maybe, it is a move by the middle east to stop accepting dollars for oil? Or maybe it’s an announcement that the Chinese are no longer buying US debt and will only be buying gold. Or maybe somehow it gets out that the US doesn’t own much or any gold? I don’t know what it will be. Probably nothing any of us anticipate.
As long as gold rises methodically and slowly, even if it goes as high as $2000 or more, a majority of the public will still dismiss it. Heck, they have Dave Ramsey, the most trusted financial expert out there, telling you to sell your gold, not buy it – I love Dave Ramsey but he’s wrong on gold for reasons we can talk about later.
Again, something needs to happen in order to freak everyone out. At that point, what will happen? Well, gold will shoot to the moon of course, because finally you’ll have the masses trying to pile into gold at the same time. Physical gold will be impossible to find. This will be the catalyst for a parabolic move in the shiny yellow metal.
When that happens, I will re-examine whether or not I want to hold it. In a panic gold rush by the masses, I’ll probably unload some of my gold, but hold on to other positions.
Things are unraveling in the economy and in the world monetary system. Better get your hands on some metals now before the masses join you.