None of these selloffs dictated the end of the gold bull market! That won’t be the case this time around, either. A panicked shakeout is just that!
The fundamental case for gold is growing, not diminishing. In spite of the downtrend in the price, the conditions that support the long-term bull market are increasing in importance. The US and Japan alone will flood the world with almost $2 trillion over the next 12 months. Europe’s problems have not been solved, and the Eurozone teeters on the edge of a recession. And did you know that not one G20 country currently has a balanced budget? The current fiscal and monetary path of many major countries remains unsustainable, and no amount of selling by traders and hedge fund managers has changed that.
One might argue that these issues now have a diminished effect on the gold market. Regardless of whether that’s true, the effects of these actions have not played out. There is no easy way out of the corner our political leaders have painted themselves into. In other words, the damage has already been done to our fiscal and monetary state. The endgame to our debt situation hasn’t changed. When the ramifications begin setting in, it will be imperative that we all have meaningful exposure to gold.
In the end, fundamentals always win. In spite of the selloff, the long-term trend is still intact. Keep your eye on the big picture.
A lifetime buying opportunity is shaping up. We’re not exaggerating by stating that. Given the waterfall decline in both precious metals and equities, investors with the courage to act and the cash to deploy will not just be rewarded, but could very well change their financial futures. The chance for enormous gains will be remarkable!
