r2d22010

The Great Economic/Financial Collapse: Gold and commodities(6/6)

Long
COMEX:GC1!   Gold Futures
for years not gold has been a asset for investors during hard times. investors use gold as a hedge against inflation and a safety measure.

Gold,silver, and crypto do extremely well when inflation is high. over the past 2 years we have seen 40% of the money supply get printed. this should be very worrying for investors and the value of the US dollar. with debt on the rise and a possible economic collapse coming soon... i do think printing will continue which will lead to hyperinflation (i talked about this in the DXY section)

here is a chart showing the current money supply:


Gold does really well during times of struggle like war or depressions. we have seen price of gold double or more when we go to war. why is this? because there is money being printed during these times. money printed= assets that hedge against the dollar rise.

here is gold during world war 1:

www.kitco.com/commen.../images/image004.png

prices for gold went from 25 dollars to 35 dollars.

another example of gold prices surging during war is the Vietnam war...

here is the chart of gold during the Vietnam war:


prices for gold went up over 100% and just 5 years later it went up almost another 254 dollars.

another example of money being printed is during recessions. during recessions we see a lot of money printing to keep the economy alive and to make sure it doe not collapse. a good example of this is in 2008.

here is gold during the 2008 recession:


the last recession in 2008 gold prices started at $747 and by the end of the recession it was at 980. it did have a slight dip in between but it recovered shortly after. why did gold do so good during this time? like i said, money printing .

this chart here shows the dollar vs gold:


we can see here that every time the dollar drops gold prices tend to surge and when the dollar rises gold prices tend to drop. we see the same thing happen with gold and crypto.

here is silver vs dollar:


here is bitcoin vs dollar:


these 3 assets are a really good hedge against inflation as you can see on the charts. i think that everyone should have at least of portion of their portfolio into gold, silver, and crypto.

if markets do end up crashing like i am predicting that would cause a threat of deflation making loans go bad since people won't be able to pay them off. if this does happen that will make the fed bring more money which will lead to more inflation making prices of gold go up. inflation=weak economy. to fight inflation you should have gold in your portfolio.

here are some reasons on why you should invest in gold and other assets that fight inflation:

hedge against inflation, possible hyperinflation in the future (i talked about this in the DXY part), government and public debt, and possible war with russia.

over the past year we have seen public and government debt skyrocket. we have also seen spending go up.

en.wikipedia.org/wik...ile:Federal_Debt.png

en.wikipedia.org/wik...ile:Federal_Debt.png

www.google.com/url?sa=i&u...

we are obviously in a debt bubble and i do think the debt bubble will pop with the economy and other markets in the upcoming years.

we have also seen tensions with russia rise over the past few weeks. as i talked above, gold does really well during times of war because of the money printed during those times. russia invading Ukraine is looking possible which could lead to war. if this does end up happening you know that gold would be a great option to get into.

gold gurus and large gold investors:

some gold investors include the following: Jacob rothschild. his reason for investing in gold is government debt, interest rates, and quantitative easing.


we can see that gold prices rise every time interest rates rise. the fed is planning to raise interest rates in march meaning we could see a surge in interest rates soon.

Jacob holds around 8% in gold.

2. Ray Dalio:

Ray Dalio is a large and the most famous gold investor. his reason for investing in gold is high debt and the fed printing money. he holds around 5-10% in gold. he invest into gold trust etfs but we will talk about that later.

3.David Einhorn:

David Einhorn is also a big gold investors and gold is one of his top positions. his reasons for investing gold is as a inflation hedge.

Here are the ways you can invest in gold:
-you can buy physical gold (bars and coins)
-you can invest in gold trust etfs
(these gold trust its hold physical gold and they sell shares so the share holders own a fractional part of the gold that the trust is holding. the price of the shares is reflected on the actual price movement of gold.
- gold miner stocks.
(you can invest into companies that mine and sell gold. why this option? because of profit margins: lets say a gold mine company has expenses of 500,000 and the revenue is 1,000,000. the profit for the company would be 500,000. if the price of gold doubles the expenses stay the same but your revenue double. so your 1,000,000 would be 2 million and your profit would be 1,500,000 meaning the company made 3x instead of 2x if you invested in gold. so investing into gold mines could give you more profit but if the price of gold drops you make no profit and could lose everything because of the price of gold and what the company is doing.)

a famous person that invests into gold mines is warren buffet.

Here is some charts for gold trusts:

IAU (shares gold trust):


GLD(SPDR gold trust):


Here are some charts for gold mine etfs:

NUGT(Direxion daily gold miners index bull 3x shares)


JNUG(direxion junior gold miners index bull 3x shares)


RING(IShares ms global gold miners etf)


there is many more options that you can look at. these are just examples. you can also look into silver etfs like SLV, Ishares silver trust, SIVR, SIL, ProShares ultra silver, SLVP.

Cup and handle:

as you can see on the first chart the price for gold is forming a cup and handle. this pattern is a bullish pattern meaning we could get a pump soon.


the target for this breakout is a 50% move to the upside. with rising tensions with russia, inflation, debt, etc i do think we will see a pump in gold, silver, crypto.





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