Gold – Don’t blame the thermometer

When someone is sick we sometimes use a thermometer to take their temperature. A high reading indicating a possible infection. This can begin the process of finding the cause of the infection and treating it. Rarely do we question the reading, because the thermometer is good at noticing the temperature change. 

Gold is the thermometer of the fiat currency system. It is signalling it is not well. It needs to treated. Yet the majority, during gold’s ten year rise, continue to be perplexed or question’s it’s reading. A bubble. A nonsense. A barbarous relic. From the savvy to the novice. In a sense they cannot be blamed. Having known only this fiat money period, they see the world through this experience. A period seemingly normal. Reasonable. Average. Their experience defines their views. As it does all of us. But ask an Argentinian, a Zimbabwean, a Greek an Icelandic person. They are not as perplexed. They do not second guess the price of gold. They do question their own currency. Their experience now tells them to trust the thermometer.

Make no mistake, these moments in history do not end with a whimper. They end with a bang. Gold will rise until the correct course of action is taken. At an accelerating pace. Because, like the thermometer it will signal that treatment needs to be administered.

So as gold marches higher, the derision, the bubble calls will increase, because it is too negative to consider what it says about what they know, or they think they know. Until authorities (politicians and central bankers) make the difficult decisions to signal the value of our current money is safe and stable, confidence will continue to fall at an accelerating pace, and as it does, the thermometer will signal the illness of the patient. Those who care to stand back from their own experience, will understand the message of the thermometer. The patient is sick. Very sick. But most are questioning the thermometer.