How long should investors stick with gold, and why?

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How long should investors stick with gold, and why? by Chris Powell – GATA

Dear Friend of GATA and Gold:

This correspondence may be of interest.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Wednesday, June 13, 2018

Dear Chris:

I briefly met you maybe eight years ago in New York when we heard a presentation by Jim Sinclair at the annual dinner of the Committee for Monetary Research and Education. I am an independent 78-year-old engineer and have followed GATA’s reports on gold price suppression.

My knowledge of the international monetary system is only that of a layman. I also follow other internet sites like King World News, JSMineset, Jim Willie, and Silver Doctors, which seem more promotional for gold. Your writings impressed me that you are a straight shooter and I had a similar impression speaking with you. I would value your opinion.

It does appear to me that the dominance of the U.S. dollar is nearing an end. Several factors should have driven the gold price sky-high by now, yet it remains stuck around $1,300 per ounce.

— The U.S. money supply has tripled or quadrupled in recent years. It appears that this trend will accelerate.

— The Muslim world now finally permits followers to invest in gold.

— China, Russia, and India are buying more gold than ever.

— China’s issuance of the petro-yuan is the beginning of the decline of the dollar.

But the investing world greets all this with a yawn and instead bids up the already overpriced U.S. stock market, lending credence to GATA’s argument that the gold price is being artificially suppressed.

I hold a healthy chunk of my retirement savings in a variety of precious metal mutual funds and my advisers claim that it is time to dispose of them and instead invest in the general stock market. Yet that market has not had a correction for a decade and is long overdue for one.

Do you have any gold timing advice or can you recommend anyone for that?

— B.B.

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Wednesday, June 13, 2018

Dear B.B.:

Thanks for your note.

GATA is not an investment adviser, but we think the basics for gold are very much as you understand them and thus incredibly bullish except for central bank price-suppression policy.

Yes, there are increasing indications of stress in the gold banking system, but the central banks haven’t lost control yet. My guess is that as the metal the central banks are prepared to lose runs out, they will revalue gold substantially upward, repurchase the metal they have been selling and leasing, and restart the price-suppression scheme at a more sustainable level for another half century.

But they won’t be letting us know in advance the date of such a reset. I’m 68 and I am not sure that I will live to see that day.

And then, of course, there is the question of whether, after a reset, governments will let people keep their gold and let mining companies keep their properties. I think the East will be less confiscatory than the West, but no one can be sure.

So how long should anyone hold out with the monetary metals? That’s investment advice. I’m holding out but it’s mainly for spite. It’s all GATA can do to keep documenting the market rigging and pressing the issue with all who will or should listen.

Unfortunately with a few courageous exceptions, the mining industry itself is almost entirely useless in this regard, as are mainstream news organizations. The suppression policy of various governments envelops them too.

GATA’s support is very limited and steadily diminishing as the market rigging by governments becomes more aggressive and those who believe in free and transparent markets and individual liberty grow demoralized by the long struggle.

These are our Valley Forge days. But at least we still have boots and so we will press on as best we can.

Thanks again for writing. I’m sorry I can’t be more helpful.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

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Chris Powell

The Gold Anti-Trust Action Committee was organized in the fall of 1998 to expose, oppose, and litigate against collusion to control the price and supply of gold and related financial instruments. The committee arose from essays by Bill Murphy, a financial commentator on the Internet (LeMetropoleCafe.com), and by Chris Powell, a newspaper editor in Connecticut. Murphy's essays reported evidence of collusion among financial institutions to suppress the price of gold. Powell, whose newspaper had been involved in antitrust litigation, replied with an essay proposing that gold mining and investor interests should act on Murphy's essays by bringing antitrust lawsuits against financial institutions involved in the collusion against gold. The response to these essays was so favorable that the committee was formed and formally incorporated in Delaware in January 1999. Murphy became chairman and Powell secretary and treasurer.