The final bubble will be a golden one, page-7

Well as I wrote I think the posibility is high, we will first see a 1929 like deflation and directly after that a very strong inflation. As for the deflationary phase, one can already see from the actions of politicians and central bankers, that they are trying to reduce the fallout of the economic standstill, which we are experiencing right now.
In Germany there is basically every business shut down except for supermarkets, pharmacies, gas stations and take away restaurants. And the situation is kind of the same all over Western Europe. Its a surreal world with nearly no traffic on the streets, life has literally come to a standstill.

In the German DNA there always was a strong resentment against taking on too much debt and printing too much money because of the Hyperinflation the country experienced in 1923, where in the end there were banknotes of up to 5.000.000.000 Reichsmark , being worth just 1 dollar.
People here know the storys from their grand parents, where you had to take whole suitcases full of money just to buy a loaf of bread in that time. On the positive side, that also made sure, that Germans have a good understanding of the value of gold and how it behaves when central bankers are printing like there is no tomorrow.
I am not thinking that it will become as dramatic as 1923 in Germany or in the 1980s in Zimbabwe or just recently in Venezuela, but I do expect a sharply increased inflation, since basically all the governments worldwide are more or less doing the same. Printing like crazy to bail out the economy they just destroyed with their drastic measures.

There is some valuable data from Germany 1923 time of how asset classes developed under these circumstances. While stocks where doing very well, by far the best asset to own was gold and IMHO to get the best of both worlds, the logical investment is a gold mining company. Especially if the physical market is dried out and it is getting increasingly difficult or in many cases already impossible to buy real gold or silver. All this is happening with an incredible speed and since 3 big gold refineries in Switzerland were just closed down two days ago (which are responsible for 70% of the worlds smelting ) and no airplanes are bringing new metal from Canada or Australia, or elsewhere to Europe , the next best thing after the real metal are the miners. Which is where people will turn to once they realize their currency is in danger of becoming worthless.

As I write, with the US markets open for about 4 hours now, the GDX (+13,5%) and the GDXJ (+14,5%) are once again very heavily in the green territory and since Northern Star is an important asset in both ETFs, todays ASX trading should see another round of hefty buying into our company.

But again, IMHO we are just in the beginning stages of what is to come...