Authored by Matthew Piepenburg via VonGreyerz.gold,
War, oil and gold are making headlines of late for overlapping and independent reasons. Below, we avoid the guesswork, finger-pointing or sensationalism attendant to current headlines concerning Iran and stick to a theme which offers some clarity, namely the interplay of oil and gold.
For years, of course, we have tracked the fundamental drivers which impact the gold price (fromDXY debates,inflation signals, andde-dollarizationheadlines toCOMEX outflows).
All of these complex signals and themes ultimately boil down to a simple realization: Gold rises as debt-trapped nations debase their currencies to monetize their increasingly unloved IOUs.
This is pure fundamentalist thinking, and it works. Gold’s direction is easy, because the fall of paper currencies is now obvious.
In short, real money (gold and silver)historically gets the last sayover paper money (USD), paper metals (COMEX) and paper promises (USTs).
Or stated even more simply: Rock openly beats paper.
Gold, as a Tier-1 preservation asset, is thus not a trade to enter or exit; it’s a leading strategic reserve asset, FX protagonist and superior store of value to be held, not speculated. One saves in precious metals and spends in fiat.
Fundamentals such as these make a now dispositive case for the long-term holding of gold.
Notwithstanding such fundamentals of gold ownership and future direction, there are nevertheless additional reasons, and tailwinds, to gold ownership, including: Oil.
Source: ZeroHedge News
