Larry Edelson: I have every reason to believe gold will easily hit $5,000, or higher, by mid-2016.
For starters, just consider the following.
1. The Washington fiasco. Many are jumping for joy that Washington D.C. finally agreed to end the shutdown and raise the debt ceiling so it could pay its bills. But is that really good news?
In the end, all Washington did was kick the can down the road to January on the budget and February on the debt ceiling. So there’s going to be more infighting, more disagreement, more shutdowns, more nasty politics coming ― in just a few months from now. How’s that good for our country?
Recent polls show Congressional approval at its lowest point ever. And I can tell you, living in Asia, most investors here now view the U.S. as a joke. They have no faith in Washington and are taking matters into their own hands. That’s why the U.S. Dollar Index is just a mere 4.8 percent away from crashing to new record lows.
This is critically important for gold’s emerging new bull market for the simple reason that gold does best when confidence in government is falling. And confidence in government, on both sides of the Atlantic now, is in firm bear market territory. That means the seeds for a new bull market in gold are now actively sprouting.
|Gold does best when confidence in government is falling.|
2. Built-up inflation. Everyone knows inflation is higher than what Washington reports.
But when confidence in government is high, government deceit and misrepresentations are typically brushed aside — just like a Ponzi scheme that goes undetected or is glossed over during good times. Most give a cursory look at the phony inflation figures, or accept them at face value.
Not so when confidence in government is falling sharply. Just the opposite occurs. Again, like a Ponzi scheme, when investors turn sour, the charades are finally exposed for what they truly are. Lies, lies and more lies.
In the case of inflation, that’s when investors begin to recognize that consumer prices have been running much higher than they previously accepted, and then they begin to act and expect prices to go ever higher, setting off a new inflationary spiral.
3. The gold market is tiny. So tiny, in fact, that all the gold that’s ever been mined could fit in a cube 60 feet on each side, or roughly two Olympic-size swimming pools.
A tiny gold market is no problem when investor confidence is elsewhere, in the government’s ability to manage a sound economy.(...)Click here to continue reading the original ETFDailyNews.com article: 7 Reasons Why Gold Prices Will Hit $5,000 By 2016You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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