The results of reckless central banking policies throughout the world have caused equity markets in Asia and Europe to tank and forced U.S. stocks into a nosedive. As it becomes evident that the financial turmoil is the new norm, investors bracing for long-term uncertainty are grabbing up as much gold as they can.
Gold prices soared to a 12-month high of $1,260 on Thursday, signaling that informed investors are bracing for the worst.
The gold rally comes on the heels of recent reports that the Federal Reserve and the world’s other central banks have essentially “run out of ammo” to continue artificially stimulating the economy.
Years of artificial money-pumping emboldened gold skeptics and mainstream investment experts who often shun the precious metal, driving down gold prices. But market correction has once again revealed gold as the premier hedge against economic uncertainty.
“Gold was like a beach ball that had been pushed too low in the water and is now bouncing higher with a vengeance,” Mark O’Byrne, research director at Dublin-based GoldCore, told MarketWatch.
And, yet again, mainstream economists are claiming to be “surprised” that gold is shining.
What they really mean to say, is that they can’t admit that the all-powerful central banks have no answer for the turmoil they sparked with fiat money pumping and artificial stimulation.
Things are going to get more interesting in the months ahead. Remember, the central banks have already done everything they know to do to stimulate the economy. And even at peak stimulus, the markets didn’t perform awesomely. Now, as the Federal Reserve and its international counterparts continue to back off the unsustainable policies, markets are in a downward spiral.
Many forecasters believe things will get as bad as they were during the previous financial crisis. This time, however, the Fed lacks the ability to stimulate the economy and restore confidence. In other words, there’s a possibility that gold may become much more than a hedge against insecurity in the not so distant future.
Editor’s Note: Despite what the White House tells us, America’s economic situation is getting worse, not better. And the dollar’s collapse could come at any time—utterly wiping out the wealth of anyone who hasn’t taken the necessary steps to prepare themselves. Take the first step to protecting your family from the economic turmoil today.