Forget Pullbacks, China Guaranteeing Epic Bull Markets In Gold & Silver
Forget Pullbacks, China Guaranteeing Epic Bull Markets In Gold & Silver from King World News
Today one of the greats in the business told King World News that investors should ignore volatility in precious metals because China is guaranteeing epic bull markets in gold and silver.
Dr. Stephen Leeb: “The last few weeks have certainly had their share of headlines that inspire thoughts of doom, from North Korea’s nuclear threats to massively destructive hurricanes. Hurricane Harvey already has proved to be the greatest disaster ever to hit Texas, while Irma, as I write this, has ravaged Florida. The combined damage from the two storms could be in the hundreds of billions of dollars…
Meanwhile, gold is has been strong as of late, despite today’s pullback. But if you’re assuming that’s because of gold’s traditional appeal as a provider of shelter in a storm, a safe haven when things get rough, think again. You only need such a shelter if financial assets are breaking down, and that hasn’t been happening – throughout all the disasters, the stock market has hung tough.
Instead, gold’s strength reflects prospects that, courtesy of China, the metal will be resuming its role as a currency. I continue to see gold as in the early moments of what will be an epic bull market catalyzed by China’s adoption of a gold-linked yuan, perhaps as part of a broader basket of currencies, for trading in what will be the world’s newest and most important oil benchmark.
And it’s no accident that China has chosen oil, which is often referred to as black gold, as the critical building block, the initial item denominated in that currency, which will be used in the East and potentially throughout much of the world, at the expense of the dollar. The plan goes hand in hand with China’s intention to dominate virtually all major sources of energy, which the country correctly sees as essential to its future.