If there was ever a time when the world is sending mixed signals, it’s now. The DOW is at all-time highs and seemingly unstoppable. Economic growth, as measured by GDP, hit 3%. Tax reform seems to finally be a possibility, which, if done correctly, would enable continued economic expansion.
Then there’s the other side of the coin. The current Administration is under investigation. Indictments are being handed down. New revelation of possible collusion from the opposing political party is in the news. Volatility in North Korea; Catalonia’s vote to secede from Spain – who vows to stop that from happening; Brexit talks heating up–and the list goes on…
Oh yes–then there’s the crypto craze with ICOs generating hundreds of millions of instant capital for entities that have business plans similar to many .com era companies. Marijuana stocks are going gangbusters.
And then there’s gold and silver, appearing to languish in the midst of all this turmoil and uncertainty. Why should anyone buy it these days? Aren’t gold and silver dying assets in this new digital age?
As Mark Twain was famous for saying, “The reports of my death have been greatly exaggerated.”
Gold and silver are behaving now exactly as they should. No panic. No fear. Just reasoned assessment of reality. And reality is uncertain for many.
Sure, cryptos are hot and interesting right now. But let’s see what happens a year from now when the present day .com fakes blow up and take the savings of hundreds of thousands with them. It will be at that point when the crypto space enters a new phase – finding reality.
Please don’t misunderstand, however. Cryptos have a place in the future economy and monetary system, but not in their present wild-west form. Someone will enter the picture and give reasoned analysis to all of these ICOs, and it may be US regulators.
And that is one of the many signals gold and silver are giving right now. They are patiently waiting as the general public becomes aware of, plays with, and gets burned by the crypto craze. Their traditional roles of guarding against financial mismanagement by governments are expanding to include the mismanagement of the emerging monetary system instruments by speculators.
Those who recognize this are patiently accumulating the only form of money that has survived 5000 years of this kind of innovation. They survived fiat currencies. They survived debt-backed currencies. They will certainly survive electronic digit money as well. Their role will become even more solid in the minds of smart investors as a means to protect themselves, and the world, from what is emerging.
Real, tangible assets are one of the best means to survive a world that is changing in so many ways. So keep the faith. Keep stacking. You will be better off for it in the years ahead.