QUESTION:Martin, You have said on multiple occasions, that gold will only rise when the Market loses confidence in the Gov’t.This Mid-Benchmark Rally you note here in this article.
is this a temporary blip???, temporary rally???, that will still pop and go bust to the low side???
Or are people losing Confidence in Gov’t now??? is that happening hence this rally???
ANSWER: Of course there are many of us who have already lost our confidence in government. Odds are you would not be reading the blog otherwise. Granted, more than 3 million unique viewer read this blog. We are still well below the 10% mark of the US adult population which would be about 23 million, so we are far from that level at this time.
Nevertheless, the rise in the polls of Donald Trump reflect this growing dissatisfaction with government. When Social Security goes bust in 2017, our computer is projecting that between 2017 and 2020 is when we will most likely see the collapse in confidence.
Therefore, it is still premature to expect a breakout just yet. Governments are still moving toward negative interest rates. This will help shift capital from PUBLIC to PRIVATE.
The volatility is still insane. Gold should make a new low yet this year. However, since we DID NOT get the sell signal in gold at year-end, then this is the bounce, but do not expect it to be a breakout just yet.
Population, 2014 estimate
Population, 2010 (April 1) estimates base
Population, percent change – April 1, 2010 to July 1, 2014