1 Simple Chart Driving Hoards of New Gold Investors
If there’s one thing that drives precious metals up, it’s volatility and turbulence in the economy. More uncertainty means more people seeking a safe haven investment, and precious metals, namely gold, are the pinnacle of safe haven investments.
We’ve seen this principle exemplified throughout the majority of 2016, as the gold market rallied strongly in the midst of continuing hiccups in the global economy and geopolitical shakeups like Great Britain leaving the EU.
So, it goes without saying, if you could point to one chart and prove that even more bumpy economic roads ahead in the near future, that alone would be enough to drive hoards of new investors into gold.
Well, we might have a chart that will do just that. Steve St. Angelo at SRSRocco Report has an analysis you have to see.
Here’s the chart, along with a few key quotes from Steve’s original post:
“The U.S. financial system is in serious trouble and this one chart confirms it. Investors who understand the negative consequences of this chart would be buying physical gold and silver hand over fist.
“… the U.S. economy and financial system continue to disintegrate under the forces of massive debt, zero interest rates and a collapsing energy industry. This is not a situation that will continue for many years or decades. This will likely collapse much sooner than most Americans realize.
“Why? Because… as the debt increases at an exponential fashion, so did U.S. GDP. Which means our GDP growth is really fictitious or based on the leveraging of debt.
“… if we look at the Exponential Growth rate chart we can clearly see that the rising debt and GDP trend lines are heading up FASTER than the exponential trend. This is very bad news for Americans rich and poor.
“According to most scientists and mathematicians, and Exponential Growth Rate is not sustainable… thus is eventually leads to collapse.
“The reason investors need to be holding onto LOTS of physical gold and silver is due to the coming implosion of U.S. public debt.”
If Steve is right – and it’s hard to argue with the detailed quantitative methods he’s using to draw these conclusions – it makes for a compelling argument to hold as much physical gold as is sensible for your personal situation, because the day of reckoning might not be far off.
Give us your thoughts in the comments.