Is Gold Making A Triumphant Comeback?

Analyzing the long term economic and market cycles, the probability is very high that the stock market downturn may eventually be the worst since the Great Depression. Of course, there are many more safety nets now, and the central banks of the world will coordinate in order to soften a decline. But the Fed and other central bankers are not the solution. They are the problem.

All the ‘safety nets’ have to be paid for with money the governments don’t have. Therefore, it will have to be financed with ‘money creation’ by their central banks.

Gold: The War on Gold

We are now seeing a ‘war on gold.’ For the past several months we have been mentioning that the gold bullion banks and the central banks were putting lots of downward pressure on paper gold so as to discourage those who thought that gold was better than paper money.

Although we have been bullish on gold for the long term (i.e. 5 or more years), we turned bearish on the intermediate term. In our Feb. 15 issue of our WELLINGTON LETTER, we wrote: