PREPARE FOR 👉The Big Reset: Coronavirus & Gold & The Financial Endgame - financialanalysis

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Friday, February 7, 2020

PREPARE FOR 👉The Big Reset: Coronavirus & Gold & The Financial Endgame

There’s plenty of evidence to demonstrate that the US and global economies were slowing down markedly before the Wuhan Coronavirus hit, but now it will be used as the cover story for the coming global economic depression, . All the while, the US stock market has reversed its Friday losses, and some individual stocks, such as Tesla, are going vertically parabolic.
How can we make sense of what’s going on in the markets and economy right now?Will we wonder, what were we thinking, and marvel anew at the madness of crowds?
When we look back on this moment from the vantage of history, what will we think? Will we think how obvious it was that the coronavirus deaths in China were in the tens of thousands rather than the hundreds claimed by authorities?
Will we think how obvious it was that the virus would spread around the globe, wreaking havoc on the global economy and social order, even as the authorities claimed only a handful of cases had arisen outside China?
Will we be amazed at the delusional confidence that the U.S. economy would be untouched by the virus as stock markets quickly soared to new all-time highs while the world’s largest economy ground to a halt in a desperate attempt to close the barn door after the horses had already escaped?
Will we look back at the patently false data being promoted by authorities and wonder why the majority accepted it all as credible?
Will we re-examine all the smartphone videos posted on the web by average people and wonder why all the lies were given more credibility than actual videos?
Will we recall how content that didn’t parrot the approved narrative that everything was under control and the global impact would be near-zero was suppressed, banned, de-platformed or marginalized? Will we wonder at the complacency of all those who accepted this orchestrated suppression with such obedient passivity?
Will we look back at the claim that only twelve people in the entire U.S. had the virus, despite all the direct flights from Wuhan and the tens of thousands of people who’d traveled from China to the U.S. in January, and marvel at our credulity?
Will we look back at the wreckage left in the wake of the coordinated campaign to suppress the facts and lay the responsibility for all the carnage on the authorities who devoted more energy to hiding the realities of the pandemic than to preparing us for the impact?
Will we ponder the incredible grip of mass delusion on the human mind when we recall the confidence that the U.S. economy was invulnerable to the virus and the implosion of China, and the blithe quasi-religious faith that central banks would never let global stock markets decline even 2%?
Will we wonder how the mainstream could watch the Chinese economy shutting down and still remain absolutely confident that the global economy would be untouched as the spot of bother was sure to evaporate in a week or two and all would be restored to pre-virus euphoria?
Will we wonder what were we thinking? and marvel anew at the madness of crowds? Will we wonder why we embraced the delusion so readily, and relive the moment when the gate to reality creaked open? Will we relive our realization that we’d embraced an absurd fantasy floating on a tissue of lies, or will we bury that painful moment of truth?
Higher Gold Prices Ahead? Central Banks Buy 5,000 Tonnes of Gold.Look at Central Banks for Direction on Gold Prices
Gold prices have done well, but the yellow precious metal could do even better in the coming months and quarters. A $2,000 price of gold is a real possibility.
You must pay attention to the big players in the gold market. They are making a very bullish case for investing in gold.Who are these big players in the gold market? Central banks.
As it stands, central banks are in love with gold. They are buying gold like never before, and it doesn’t look like they will stop anytime soon.
Central Banks Are In Love With Gold
Here’s some perspective.
In 2019, central banks added 650.3 tonnes of the yellow precious metal to their reserves. This is a little shy of the 656.2 tonnes they purchased in 2018, but still a respectable amount. Looking at the bigger picture, central banks have been net purchasers of gold for 10 consecutive years. Over this period, they bought 5,000 tonnes of the precious metal.
They had a change of heart over the past decade. At the end of 2019, central banks around the world owned about 34,700 tonnes of gold bullion.
How much is this gold worth? In one tonne, there are 35,274 ounces, so 34,700 tonnes equate to about 1.2 billion ounces of gold. Using the current gold price of about $1,550, central banks own about $1.9 trillion worth of gold!
Preceding the last 10 years, central banks were actually net sellers of gold. Between 2000 and 2009, they sold over 4,400 tonnes of gold.
Who’s buying gold these days? It’s the central banks from emerging economies. They are working very hard to accumulate gold. It’s countries like Russia, China, India, and Turkey that have been buying gold. Nations with major economies like the U.S., Germany, and France already own a lot of it.
Here’s Why $2,000 Gold Could Be Possible
Dear reader, let me repeat, if you are not looking at the central banks buying gold, you could be making a big mistake.
You see, central banks hold a lot of fiat currencies in their reserves. And if there’s one thing they have learned over the past decade it’s that, sadly, you can’t trust paper money. It declines in value and it’s not the best store of wealth.
Gold is one of the best hedges against currency devaluation; it preserves wealth.
As it stands, the central banks still have a lot of fiat currency that needs to be hedged. So it’s not an out-of-this-world idea to expect them to continue buying gold.
Here’s the kicker: the gold supply has immensely suffered over the past five years. The gold industry is not ready for the demand from buyers like central banks. As the banks ramp up their purchases, we might see a shortage of some sort, which could send gold prices surging in no time.
Keeping all this in mind, I can’t help but be bullish on gold. Since 2016, the price of gold has trended higher. 2019 was a solid year for the yellow precious metal and I expect 2020 to be another great year for gold. This year, gold prices could make a solid run toward $2,000.

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