*Disclaimer: The article is the opinion of Clive Maund and not of Streetwise Reports. Topics discussed may be controversial to some readers.*
With the gargantuan debt bubble built up over many decades now collapsing and imploding, the world is headed for a hyperinflationary depression, and the highest priority for investors and citizens at large is simply wealth preservation with so many destructive forces converging at once that will render many assets and investments worthless.
Gold's greatest attribute is that it always holds its intrinsic value, no matter what, and in an environment where other assets, especially paper assets, are losing value at an increasingly rapid rate, it really comes into its own, appreciating against currencies to offset their decline in purchasing power and even gaining in real value as investors eventually stampede into it as a safe haven.
Right now, there is a queue of banks on the conveyor belt to bankruptcy that is like the line outside an unemployment office in the early 30s. The reason for this is simple. During the long period of zero or even negative interest rates (in Europe) that went on for several years, Banks couldn't resist leveraging their loan books to the maximum.
Gold's greatest attribute is that it always holds its intrinsic value, no matter what, and in an environment where other assets, especially paper assets, are losing value at an increasingly rapid rate, it really comes into its own, appreciating against currencies to offset their decline in purchasing power and even gaining in real value as investors eventually stampede into it as a safe haven.
Then when rates rose relatively steeply this year — to about 5% in the U.S. — they were quickly driven to insolvency, and that is why we are seeing a trickle of Banks going bust that will soon turn into a flood. This is all contrived, of course, and plays into the hands of the biggest banks and the Fed, who want total control of the banking system to facilitate the introduction of the CBDC's (Central Bank Digital Currency) which look set to start rolling out this year.
The CBDC's will be a total control grid. Of course, it's rather embarrassing having scores or even hundreds of banks go bust, which might rattle investors, so the best way to "paper over the cracks" is for the Fed to extend a lifeline to failing Banks, which has been the talk of recent days. All it has to do is create a few hundred billion or a few trillion dollars out of thin air — the amount is not important — to throw at rescuing these banks, and this it can do because it is no longer beholden to old-fashioned and stuffy restraints like fiscal propriety and accountability — it is above the law — it is the law — and can do exactly as it pleases.
The extra trillions of dollars created for this purpose are not a problem as this dilution can be pushed off onto the ordinary citizen and taxpayer via inflation / hyperinflation. Back in the day, in 2008, they at least went through the motions of Congressional approval before the massive bank bailouts, but now they don't need to bother with this.
The lifelines extended to these failing banks will, of course, come with conditions, the main one being that they had better play along with the introduction of the CBDCs, or else and many of these cannibalized banks may end up being, in effect, franchises of monster banks like Goldman Sachs and J.P. Morgan even if they still have the old name on the door.
This is all a play for the centralization of power ahead of the CBDC rollouts, and seen in this context, the jacking up of interest rates for months in the U.S. makes sense, especially as it has also bought breathing space for the dollar.
However, once all these walking wounded banks, like survivors returning from the Somme, have been brought into the fold and the gate is closed, the Fed will be free to drop rates and crash the dollar as the BRICS, etc., move in for the kill, it all being part of the Globalists' plan to destroy the United States once and for all. At this point, China will assume ascendancy as the social credit score control grid trialed in that country for years goes global.
Since we are now at the end of this fiat cycle, the impossibly massive debts that have built up will either have to be written off or rendered worthless via hyperinflation, and the way things are going, it looks like the latter will prevail. The plan is for the CBDCs to be introduced locally and then merged over time into a single global super CBDC, which will happen without determined and strenuous public resistance. All the local currencies and cash will be rendered obsolete.
At this point — and it may not be all that far off now — the dollar's decline will accelerate since it is intrinsically worthless anyway, and even paper gold will soar. So let's now proceed to see how gold looks on the charts, not just in U.S. dollars but also against a range of other important global currencies.
The global economic collapse that this will entail, which has already started leading to protests and riots such as we have seen in France in recent weeks, will necessitate strict control measures, meaning Martial Law and a big reason for the Covid Lockdowns was to train the population for this.
The excuse for a new round of Martial Law impositions may be the release of more serious bioweapons, and it is clear that the massive detention camps built in Australia and China and other places over the past several years were not for Covid — that was the excuse used to build them, but they were never used much. No — they were obviously constructed with a view to much heavier use later when the global economy collapses.
As mentioned at the outset, gold is real money with intrinsic value and holds its value no matter what. It therefore represents safe haven and a beacon of security, and to this end, the possession of physical gold is of the utmost importance.
As the old saying goes, "If you can't hold it in your hand, it ain't yours."
The unavailability of physical gold (and silver) at this time is a measure of the manipulation of these metal prices on the paper markets — if the paper price was fair, you wouldn't have trouble obtaining physical. As time goes on, this anomaly will become untenable, and either it will be fixed by paper prices rising to reflect the true value of the metals, or a black market will arise that will sideline the paper markets. In any event, and to whatever extent you are able, it is a good idea to get on board as much physical gold and silver as you can and have the means to defend your stash from marauders. In the world we are moving into, the paper price is irrelevant.
As set out above, once all the smaller banks have been crushed and gobbled up by the big banks and the Fed — their valuable assets will be bought for pennies on the dollar and the trash dumped onto the taxpayer — the Fed can then lower rates to rip the rug out from under the dollar as part of the process of neutering the United States.
At this point — and it may not be all that far off now — the dollar's decline will accelerate since it is intrinsically worthless anyway, and even paper gold will soar. So let's now proceed to see how gold looks on the charts, not just in U.S. dollars but also against a range of other important global currencies.
Gold in US Dollars
Starting with gold in U.S. dollars, we see that things are really starting to get interesting, with the price already nudging new highs at the top of the giant trading range that has been building out since mid-2021. While it could back off short-term while the biggest banks, which are too big to fail, of course, and the Fed finish the job of assimilating the smaller and regional banks, using relatively high rates to cripple them and render them defenseless.
Once this job is complete, we can expect rates to drop and the ensuing dollar collapse to trigger a breakout to new highs and a powerful new uptrend.
Staying on the same continent, we see that gold has been in quite a strong uptrend against the Canadian dollar from October that looks set to break it out to clear new highs before long, which should lead to a continuation and possibly acceleration of this uptrend.
It has been pushing a breakout for some weeks now and should succeed even if we see a minor reaction first.
Swiss Francs
Now we'll look at gold in Swiss Francs, which despite the predations of the Globalists, is still held in higher esteem than most currencies, even though it has largely lost its ability to function as a haven for criminals and tax dodgers to hide illicit gains.
Even against the Swiss Franc, we see that gold is looking good, with it not far from the upper boundary of a giant trading range that has formed from mid-2020.
Once it breaks out against the Swiss, it should really get moving against all major currencies but don't be deterred if it retreats near-term for the reasons mentioned above — on the contrary, this will just present an opportunity to build bigger positions using destined-to-be-worthless fiat.
Euros
Since we are in Europe, we might as well stay there and look next at gold in euros. Not surprisingly, gold has been trending higher against the euro since mid-2020 due to euro weakness because of the staggeringly incompetent European parliament.
The problem is that the priorities of the politicians in the European Union are not the welfare and future of Europeans, but furthering the objectives of NATO, the U.S. Neocons, and the World Economic Forum and "feathering their own nests" at the same time, which one could classify as a massive conflict of interest.
Against the Euro, gold is already challenging the March highs and looking set to take them out before it takes too much longer to enter a sustained uptrend.
British Pounds
On we go now to the land of hope and (former) glory, "basket case" Britain, the overcrowded multicultural island afflicted with terrible weather off the NW coast of Europe where an aging Globalist is set to become King tomorrow.
How is gold looking against the British Pound?
Actually, its chart looks very similar to its chart against the euro, and the outlook is very similar. It broke out to new highs against the pound a couple of months ago and now looks set to forge ahead.
Australian Dollars
Now we'll spin the globe around to the Far East, starting by dropping in on NWO bootcamp Australia where we see on gold's chart against the Australian dollar that it already staged a clear breakout several months ago into a new bullmarket, following a giant consolidation pattern from early 2020.
With it having broken clear above the strong resistance at the top of this pattern, it is looking very well placed to continue trending higher.
Yen
Staying in the Far East and moving north to Japan, where a small number of young people are obliged to support a large number of old people partly by not leaving home until they are in their 40s, we see that, due to continuing weakness of the Yen due to endless money creation in a deflationary environment, gold has been in a steady ongoing bullmarket since as far back as mid-2019.
And with it, in mid-channel, there is no prospect of its ending soon, on the contrary, given what we are seeing elsewhere, gold's uptrend against the yen could well accelerate.
South African Rand
Lastly, and for a bit of fun, although it might not be such fun if you live there, we will look at gold prices in South African Rand.
On this chart, we see that after reacting back and then consolidating from mid-2020, gold entered a fairly steep uptrend late last year that has already succeeded in breaking it out to new highs, and it looks likely that this uptrend will continue and probably accelerate.
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CliveMaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
