401 G.C. Breaking Commentary , Tuesday, June 25th , 2019
Gold’s Bright Future
After the 2008 financial collapse , Gold appreciated nearly FORTY PERCENT in a two year period while the S&P 500 lost FORTY PERCENT of its value. A similar story unfolded in 2011 as gold screamed over $1,800 an oz as it looked like the entire European Monetary Union was about to rip apart during the Greek crisis. The portfolio benefit of diversification of precious metals during recessions is significant.
Now, with gold at $1435.00/oz. and up almost 40% from it’s 2016 low of 1,080.00/oz. we at 401 G.C. are now convinced we will have enough new money to drive gold and the metals thru the highs from 2011 , starting with gold finally breaking $2,000/oz. and beyond. With interest rates at a negative in Europe and really behind the inflation rate in the U.S. , investors simply have limited products that offer the total liability protection that gold does.
You see, privacy also weighs in as a feature little known and even less discussed as many gold coins can be purchased without a social security number, thereby keeping the asset safe from reporting requirements and a clean pass down for estate purposes. Gold is truly the most unique protector of wealth known to man as it is actually the only physical commodity that is ACCUMULATED and therefore considered a medium of exchange, or, MONEY , and not exhausted by industrial application like silver , platinum and palladium are.
What’s Next
$5,000.00 an ounce is the medium term goal within (5) years for gold, a mere threefold increase from today.
Think that’s crazy? We all watched gold rise from $400/oz. in 2004 to $1,921.00/oz. by September 2011, A SIXFOLD INCREASE in (7) years , and that was before the Fed went into the money printing business under Obama’s QE program. Rates will now stay low as we cannot afford to raise them with all that money to buy back, which is exactly what is happening right now at the Fed and a future policy of lowering interest rates HELPS GOLD RALLY.
NOTE : The Dow had an average P/E OF (22) when the 2008 crash happened, the index is now at an average of (33) P/E and rising.
Convert a portion of your dollar – based investments now, before those dollars don’t buy as much gold later.
Jack Dempsey, President
401 Gold Consultants LLC.
jdemp2003@gmail.com