Dominoes From the Oil Crash Are Falling

  

We are witnessing a worldwide debt-crisis; and the collateral damage will affect U.S. markets.

 


We recently published “Weimar: First DEFLATION Then INFLATION.” That is exactly what is underway — in slow motion and on a much bigger scale. The Japanese yen has plummeted and the Russian ruble lost almost 1/2 its value. Dominoes from the crash in oil are falling. Based on the volatility in the USA index, we believe we are in the middle of some sort of derivatives meltdown. The Euro has crashed to a level not seen since 2006.


While their currencies lost value, the Europeans, Russians and Japanese who held their savings in actual gold coins and bars lost NOTHING. In fact, the price of gold has gone up in those currencies.  That is why prudent investors have always kept 5% to 10% of their wealth in physical precious metals.

QE4 / ZIRP
Zero% Interest Rate Policy

The dollar is backed by nothing but confidence and debt.  The dollar seems strong because the yen and the Euro are weakening FASTER; but the true value of the dollar is declining.  Do not wait for the high-flying dollar to hit an “air pocket” when the Federal Reserve finds an excuse to announce QE4.  Fear can replace confidence when people realize artificially low interest rates are here to stay.

 

On Jan. 6, 2015, multi-billion dollar fund manager Bill Gross said:  “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”

Mr. Gross is now telling investors to batten down the hatches and protect their capital.

To us that means converting some of your “paper investments” to physical coins – for liquidity with no third-party risk. Gold has been the safest safe-haven for 6,000 years. During the coming economic upheaval, gold and silver will perform as “monetary metals” and the world’s only real money.

 By Denise Rhyne

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