Markets Crash Gold Prices & Gold Rates Today Rise or Hold

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Post 2-9-18

Correction or Crisis Gold Will Be Your Hedge

Today we are seeing the markets in turmoil. Whether this is a correction or the rescission as some predict, what is important is that you protect yourself against this downturn.

Stocks, bonds and other dollar denominated investments will fall with the US Dollar and other fiat currencies. The current credit bubble appears to be bursting, worries about overheated economy, and increased inflation have caused uncertainty throwing the markets into chaos.

Gold prices and Gold Rates today are undervalued

  • In downturns and times of crisis Gold throughout history, has always proven its value. Certainly, it will do so again. We suggest you consider gold to hedge against loss in the markets.
  • Gold is undervalued and as the turmoil and market, downturns continue gold prices will rise. The US dollar and all fiat currencies are falling and when currencies fall gold rises
  • In a world where the dollar is falling, then gold is the asset that can save your wealth.
  • Market experts agree gold prices and gold rates today are undervalued. Mr. Jim Rickards says:

“Gold is incredibly undervalued and has not yet priced in a “collapse style scenario”. The time to buy is now. Don’t say you weren’t warned”

  • This is the third bull market in gold
  • Gold will increase because of the debt bomb. The US will always pay its debts but inflation will increase.
  • Bitcoin will not survive but block chain will survieve (Digital Ledger Technology)

Mr. Mike Maloney Agrees:

 


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The Credit Bubble, UNCERTAINTY and Market Collapse

Credit bubble –

A Credit bubble is created by easy credit. Easy credit is a result of low interest rates and abundant money supply. We have been in an easy credit environment since at least 2014.

The single biggest reason we have seen near zero interest rates is the Federal Reserve (Fed). The Fed further contributed to easy credit via its QE programs flooding the system with abundant money.

Past –

  • The Federal Reserve has artificially set low interest rates creating easy credit conditions.
  • The Fed has given the system an abundant supply of money via its QE buying programs.

Present –

  • The Fed is now raising interest rates tightening credit
  • The Fed is selling assets purchased by QE programs, thereby reducing the money supply and tightening credit.

Jim Rickards has argued that the Fed is “tightening into weakness.” Jim says this tightening could cause the very recession the Fed is trying to avoid.

Credit bubble bursting

The Confusion, Delusion of the Fed Actions — Its Effect will be to
Increase Gold Prices & Gold Rates Today and in the future

Recently we have seen volatility in the stock and bond market. We suggest this is just the beginning and more chaos is to come.  The main cause of this volatility is the recent Fed announcements and actions. Markets appear to be confused and worried.

  • The confusion come from conflicting actions by Central Banks in the US and ECB.
  • Worry form the Fed commitment to increasing interest rates and that this will increase inflation.

Fed created easy credit attempting to increase to two percent but failed

  1. A maximum of markets is that lower interest rates creates growth and inflation. But the Feds artificially kept interest  near zero wanting to hit two percent inflation target. But no or at best only nominal inflation to consumer prices appeared.

Now contrary to historical precedent and contrary all economic science Fed says  — lower interest rates did not increase inflation but believe me, higher interest rates will. And they will do so without creating inflation or collapsing the economy.

Tightening Credit — Antithesis — of Easy Credit

The Feds actions tighten credit will slow economic conditions as history proves.

  1. Fed’s announcement and raise to interest rates beginning in December 2017 and continuing into 2018 will reduce easy credit;
  2. Fed’s announcement that it will start to sell assets purchased through its QE programs will reduce the supply of money in the system and reduce easy credit.

Confusion from tightening

It is not clear why since the Fed near zero interest rate (easy credit) failed to increase inflation it would now increase interest rate.

In other words, what happen to the need for inflation or worse is the Fed now saying higher interest rates will produce inflation.

Certainly one can make an argument inflation will increase with higher interest rates. But the important question is where does the Fed, the policy maker, really stand on this matter. Appears the have no idea how to create inflation. They seem to be saying — lower interest rates failed; so let us try its opposite; higher rates.

More confusion transmitted from Central Banks

While the Fed tightens money, ECB loosens money, further leading to Confusion in the markets?

While the Fed is selling assets, the ECB is buying assets and printing more money via QE programs. So which Central bank will investor believe? These conflicting actions are causing more confusion to the markets or excuse me uncertainty.

Cconclusion

Current Market turmoil certainly has many factors. We have simply present a few of the most prescient for your consideration. Of  course you are FREE to act and believe as you wish. However, we hope you will make an informed decision based on credible fact based arguments. In that light, we have attempted to explain current situation that is unfolding. There are always many ways to address these type of issues the one we suggested, GOLD, is just one possible insurance policy against crisis. Should you decide on owning Gold ==>REGAL ASSETS can be your provider including arranging delivery and storage when you desire. They are a no-preasure A rated gold provider.

God Bless and hope you reap much rewards in life.


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