I have written a lot about the importance of getting your wealth out of dollars AND out of the country. This doesn’t apply to all of our readers; just those with a rather substantial net worth – at least the offshore portion.
GOTS, getting out of the system and offshore is Jim Sinclair’s major focus. I have chimed in and believe his warnings are correct. Now, none other than Larry Edelson is taking the same position. Actually he has issued a warning that you must take this approach. I am rather surprised to see that both Jim Sinclair and Larry Edelson are preaching the same message, but right is right.
Miles Franklin is affiliated with BFI in Zurich and we can offer you all the information and choices you need. Bill Holter wrote about this last week and for those of you who are interested, he will personally work with you and be your liaison with BFI. This is right up Bill’s alley and his Wall Street background makes it a natural for him.
Here is Edelson’s article below. I suggest you read it.
Who Will Head the Fed? It Doesn’t Matter
Larry Edelson | Monday, November 18, 2013 at 7:30 am
Once confirmed, as I am sure she will be, Janet Yellen will stop at nothing to help the economy.
She will print more money than ever, buy more bonds than ever. Even purchase distressed real estate, equities, probably even European and other sovereign national debt. She will pull out all the stops.
But based on all of my research, none of it will amount to a hill of beans. Central bank monetary policy will have little or no impact on the markets going forward. At best, all it will do is cause short-term gyrations and confusion.
Instead, what will matter is this: Politicians in Washington and Brussels.
Why will they matter more than central bankers in the future?
Because the simple truth is that they are getting ready to tax you more than ever and even confiscate large portions of your wealth.
Kyra Brecht wrote an article for Kitco below titled What Can We Learn From Gold Trends Over The Last 40 Years?
It looks back at gold’s performance via three graphs over three different time frames.
I enjoy her writing and she is a huge improvement over Jon Nadler, but in this case, I don’t happen to agree with her conclusion.
To extrapolate the future from these examples in the past can be misleading.
The 1970s was an era of real and perceived inflation, a falling stock market and rising and high interest rates.
The 80s and 90s were highlighted by falling interest rates, a bull market in bonds and then in stocks.
The last time period features two deflated bubbles, (stock market and real estate) and the creation of two new bubbles in bonds and stocks – and negative real interest rates.
Trying to make generalizations is futile. Where we are today is unique and we are in uncharted territory. The stock market, the bond market and the dollar are all potentially risky.
The demand for physical gold has never been this strong, or certainly not since the late 70s.
Interest rates are so low that people have little choice but to risk their capital in the stock market.
Capital has been drained from the safety of gold and silver for yield and that will end badly.
In fact, the risk is real and people are selling their “insurance” to speculate. Mostly older people and they are the most vulnerable and will never recover if they make the wrong choices here.
What Can We Learn From Gold Trends Over The Last 40 Years?
Friday November 15, 2013 13:50
By Kira Brecht, Kitco.com
There are three kinds of trends—an uptrend, a downtrend or a sideways trend. Throughout gold’s history in the last 35-40 years, we’ve seen all three.
For traders or investors, it’s important to have a macro understanding of how markets move—and to know what kind of large cycle a market is in now. Let’s take a look back at some historical gold charts and see what gold history in recent decades can show us in pictures. Charts show where prices have been, but can also offer clues to repeating patterns and what may lie ahead.
Let’s take a look at Figure 1. From 1976 into the 1980 peak, nearby gold futures rallied from $101.50 an ounce to $873 per ounce—a big bull trend. People move markets and people trade on emotions. Fear and greed are seen on this chart. There is the fear of missing out on a move and the greed of wanting in on a “sure thing.”
From there, the market backed off and settled into a sideway trend from roughly 1982 to 1996, which saw gold trade in a sideways trend between $514 and $281. A big long sideways trend.