Lots of good info and important paragraphs. For those looking for an investment thesis: “GOLD HAS OUTPERFORMED ALL ASSET CLASSES IN THE 2000s
Since the 1999 low of $250, gold is up 8X in dollar terms. But more importantly, the Dow Jones has lost 60% against gold during the same period (dividends are excluded).

In this century, gold has been one of the best performing asset classes and still nobody owns it with less than 0.5% of financial assets being invested in gold. Since January 2000 gold is up 7X.

It is fascinating that in spite of this stellar performance, gold has been totally ignored by the investment world.

But that is all about to change.

The current fake monetary system based on $300 trillion of global debt, plus worthless paper assets in the form of derivatives to the extent of around $2 quadrillion, will over coming years collapse under its own worthless weight.

Future observers and historians will write many books on a system of smoke and mirrors with fake money, fake paper and grossly overvalued assets, all creating the most colossal asset bubble in history.

Obviously China and Russia will be the kernel of the future world economy with the combination of the globally dominant manufacturing base of China and the world’s greatest natural resource reserves of Russia amounting to a massive $75 trillion.

China and Russia are also the world’s largest producers of gold and probably have gold reserves far in excess of their reported figures which could amount to well in excess of 20,000 tonnes. On the other hand, a major part of the reported US gold reserves of 8,000 tonnes has probably been sold or leased against worthless paper gold claims.

So it is obvious that over coming years as the Western dollar based currency system collapses, it will be replaced by commodity backed currencies with the Yuan and the Ruble as two important pillars, both backed by gold.

Anyone who hasn’t bought physical gold yet, which is 99.5% of investors, can still buy it incredibly cheaply but not for very long.

MARKETS

Since we focus on wealth preservation and in particular physical precious metals, we are neither concerned with paper assets nor with short term moves. But since 99% of financial investments are in paper assets with a short horizon, these investors should really be concerned with protecting their fake paper wealth.

As I have tweeted recently, stocks are about to start a devastating fall and are not the right place to be. But sadly most investors will believe in yet another miracle with the Fed and other central banks saving them.

These investors will be very sorry as the biggest wealth transfer in history is now starting.

Gold will soon resume its strong uptrend and will be extremely important as wealth preservation insurance to protect against the coming economic and geopolitical storms.

The consequence of the stock market crashing and gold surging can be seen in the Dow/Gold ratio below.

In 1980 this ratio was 1 to 1 at Dow 850 and Gold $850. This ratio is likely to, at a minimum, reach the trend line on the chart which is 0.5.

This means that the Dow (and other stock markets) will fall at least 75% against gold from current levels.

What that involves in price we can only speculate about. It could be Dow 10,000 and Gold $20,000. Or it could be Dow 5,000 and Gold $10,000. In my view, the ratio will be a lot lower than 0.5.”

https://www.zerohedge.com/markets/gold-wests-vicious-cycle-self-destruction