Morning Guys, Scenario #2. again just simple working class human mine. No PHD just as plain as can be. 1. The gold price is now being trader with paper money not physical gold. Those currency war machine can just print money to keep the price down. Right now it suits both the biggest economies (US & China) in the world for the price to stay low. For the US it keeps their dollar up and Price of Gold down. For China it can go out there and buy tons more to prop up its status when it comes to backing their currency with Gold. 2. By Oct. China believes they will have enough gold to do just that. If US vito China into joining the world reserve currency, China will than Back the RMB with Gold. Win win for China. The US cannot stop China from becoming the # 1 currency on the world market. The US dollar will drop so will its share market and so will the rest of the world markets. maybe worse than the great depression. 3. Like China who is not just buying Gold but Gold mines around the world. If we set aside our portfolio to factor in this inevitable outcome. We may be in front when this war starts and will most probably come out in front. I suggest we should hold this position and spread it out when the dust settles. Right now I have allocated my supper to Cash. Not one single stock. and just wait till the dust settles. You won't lose 50 or 60 % but guaranteed to gain 2%. This is much better don't you think. You either have everything to lose or everything to gain. The choice is yours. The only win for the US is that they may half their deficit from 70 trillion to what ever it comes down to. This is no time to sterilize your mind with the grog. You need every single neuron to plan for your best situation depending on your own personal situation. There are many other scenario out there ( The drop of the oil price being another). I have said enough. Wish you all well and take care.
