Our View On Gold-Price Plunge Reflects Long-Term Realities

Archive Blog from January 2, 2016 by Anne Trimble

As we hope you welcome us again to regular analysis of the pertinent trends of the day, there are three ways of looking at the biggest drop in gold prices in three years recently.

You can see last week’s plunge in prices of gold for October delivery to $1,266.30, the biggest loss since December 19, 2013, as an insignificant hiccup. Or as affirmation that global financial powers finally have their act together and investors can count on the reigning debt-money system to regain its bearings.

Or as the last gasp of a bankrupt house of cards that will soon crumble completely and give way, as it inevitably must, to the rise of a new worldwide financial hierarchy based on God’s Money – gold and silver.

It won’t surprise you to hear that we at Real Money USA fully subscribe to the last of the three theories.

Gold prices bottomed in December, 2015, at a price of $1,045.40 per troy ounce. But then they rallied last year to $1,377.50 by July, a 32-percent gain. One big reason they rose so strongly earlier this year is that it became evident to more and more rank-and-file investors that the global money powers finally had lost control of the debt-based system that they had shepherded for decades.

Brexit – the vote for exit from the European Union by the citizens of the United Kingdom – shook up the global financial elites because they didn’t see it coming. Neither did they reckon on the populist rise of Donald Trump as a U.S. presidential candidate, with all of his obvious shortcomings.

Then, as the U.S. economy continued to struggle for traction under the oppressive anti-business yoke of the Obama administration, growth in once-torrid China also cooled. Europe continued to struggle out of its recession.

And central bankers around the world began dabbling with “negative interest rates” because they couldn’t think of any other monetary policy that made sense in a world economy that refuses to grow much and which has become dominated by fear.

Remarkably, investors more recently have shaken off some of these factors, and gold’s price has been down by around 9 percent since July, which is a significant decline. Part of it is tied to the resurgence of the U.S. dollar that reflects the tepid improvements in the American economy.
“The market is coming to terms with what may be a new burst of dollar strength and a U.S. economy that is strong enough to bear an interest-rate increased,” Ira Epstein, a strategist at the Linn Group, told the Wall Street Journal. “This is where you step away from gold.”

But of course, we don’t share that view: This is where you step into gold. Because as rickety as the foundations of the global debt-money system are, they’re not something you want to rest on.
The U.S. federal debt is an unprecedented $20 billion. If you add corporate, state and personal debt, Americans and their various proxies owe more than $200 trillion to themselves – and the rest of the world! And all this paper money is worthless because it isn’t backed by any tangible asset, as it was backed by gold until President Nixon took us off the gold standard in 1971.
Sooner than later, but for sure eventually, the entire debt-money system built by man in our country and throughout the world will be shredded by events that God put in place before he began time itself. And the only storehouse of value that will be left standing will be God’s Money, gold and silver – which you can purchase through coins, bullion and various other instruments.

At Real Money USA, we have been helping our clients understand and prepare for the unfolding debt crisis and the worldwide currency unraveling that will make their paper-money assets worthless. We advise our clients on how to access gold and silver, which will keep their financial nest eggs intact through the coming crisis.

Contact us at info@realmoneyusa.com or 866-966-0177 so we can get started helping you!