There is a movement taking place with the major countries of the world that is going completely unreported and unnoticed. Many of the major countries are entering into transactions and relationships that will remove or greatly reduce the dependence on the US dollar as the world’s reserve currency. Here are a few examples:
- China and Japan directly trade currency
- Brazil and China agree on direct currency swaps
- China and Russia drop the dollar in bilateral trade
- China and Iran bypass, plan barter for oil
- Iran and Russia replace dollar with rial and ruble in trade
- India and Japan sign new $15 billion currency swap agreement
- India joins Asian dollar exclusion zone, will transact with Iran in rupees
This show that there is a clear and deliberate pattern and attempt to move away from the US dollar. The impact of this is a weakening dollar, but more import is that all of those dollars out there will eventually end up back here in the US. This will drive up inflation and the price of gold.
There is also a growing trend for central banks to accumulate gold. an interesting statistic is that just this past year China accumulated more gold than Great Britain has in total. There are now cases where other countries are exchanging goods and services with gold. Here again there is a clear and deliberate pattern developing for moving away from the US dollar, but more importantly there is a pattern for using gold as a medium of exchange.
Our interpretation of these events is that at some point the world will hit a critical mass of of collective and common thinking. That critical point will be a water shed moment in which people begin to think of gold as the currency. That moment is approaching. There is research to support that when 10% of the population or a group start thinking a certain way, then events and changes start happening very quickly. We think that we are approaching that point. When that point is reached, gold will likely sky rocket.
What this means for your self directed IRA
If we are approaching or nearing the event horizon in which 10% of the world starts using or thinking of gold as currency and a valid medium of exchange, gold will not be available at any price. You need to be reviewing your allocation of gold, silver and precious metals in your self directed IRA and making certain that your allocations are properly balanced.
The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.