PCG Presentation for the Elevate Pawn Symposium
Folks, I don’t have to tell you that our beloved world in which we live in today is in turmoil. All you have to do is just turn on the TV and get bombarded with events that are happening right now that will shape the future of the world as we know it forever.
Most recently we witnessed how the Social Media rave, primarily Facebook set off a series of events in the Middle East that the world witnessed that toppled monarchy’s and now governments.
We saw the removal of the leader of Egypt being followed by Syria and many other countries in the Far East. I am afraid to say that looking at the other chain of events that have stemmed from this should trigger our thought processes on what else is going to happen.
The immediate result of this has pushed another dramatic increase in the price of fossil fuels or oil up specifically.
I was watching the events unfolding here in the United States recently when citizens were being carried out by the droves at the state capital building in Wisconsin. Massive budget deficits faced by the states here with enormous increases coming from pension programs and more are bankrupting the states one by one. Tougher and tougher decisions are going to have to be made for everyone to give a lot more.
The US Government with all of their collective wisdom has also continued to pound numerous social reforms on to the public that in general is not received well by the citizens. They managed to socialize the auto industry, the banking industry, the health industry, the housing industry and more and there is so much more coming that we are in deed living in changing times.
Current FED policy here in the USA has been to push more quantitative easing into the banking systems which is not to be confused with printing more Money as they say! Let’s not confuse ourselves on the fact that the Federal Reserve is a privately owned bank that really only serves itself with the other conspirators in the much larger picture.
The one constant that has existed in the world since the beginning of known time, is the fact that precious metals have always sustained their place in the bigger scheme of things. We see gold in particular as a viable currency that for the most part is tradable in any country in the world today.
Imagine being stuck in Japan after an earthquake/Tsunami and this series of events shut all the communication systems down, the power grid, the banks, ATM machines, phone systems, airports and more and you had no cash on you or the cash you had was foreign and no way to exchange it.
How would you obtain cash in this scenario?
Why do you think that China has been building the largest gold reserve in the world and has increased their mining capabilities of these precious elements by more than 10 fold in the last decade? It is rumored that they may go onto a gold standard at some point to protect their currency and or their growing interests around the world. They have not sold any gold on the open markets and for the first time in their history are encouraging their citizens to own gold.
Several years back many of the central banks were dumping their gold positions while they were playing a “shorting” scheme on the markets, only to have this comeback and back fire on them. Gold continued to rise and they lost hundreds of billions.
Today these same banks are now in the buy mode for the most part for gold and are once again stockpiling.
Rumors of silver exceeding $100 an ounce are everywhere and some are talking about gold rising to 5 or 10 thousand dollars an ounce in the next several years.
The world in which we live is becoming unstable, the country as we know it is in severe financial chaos as well as the rest of the financial markets globally, pandemonium is beginning to settle in all across this great planet as we know it and the very ground in which we stand on is uncertain. I believe the recent events in Japan can testify to that fact.
I do believe that all of these facets and phenomena together pose significant growth opportunities for our beloved industry that we all live and serve in and also pose significant opportunities in the metal markets for the rest of our days on this planet as we know it.
I have been advising more of my clients to begin banking their bullion and or to convert some of their assays and melts into bullion and holding on to some of it for the future. Larger conversions into the silver metals as well are being encouraged. We see the rate of silver price as compared to gold at an unusual low spot as compared to where it has been in recent history. The translation is that that the upside for this metal in the short term appears to be much more significant.
Keep on doing what are you are doing, but let’s start hedging our bets by holding back on some quantity of these precious metals and ride the next wave, it’s going to be one heck of a ride!