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.
