When the German economy staggered and fell into recession a fortnight ago, an icy shiver ran down the collective spine of the E.U. It was merely a premonition of the economic storm that was to follow. This week, the European Union echoed Germany’s dismal tune. The economic powerhouse of Europe had sneezed, and the E.U. had caught a virulent strain of its financial ‘flu.’
The E.U.’s statistical agency rang the alarm bells with startling clarity. The GDP had slipped consecutively, not once, but twice, plunging the bloc into a technical recession. The inflated cost of living was the boulder tipping the economic scales toward the negative.
Earlier assessments whispered sweet lies of stagnation – zero growth, but not recession. However, the revised figures laid bare the truth, with the wider E.U. barely dodging the recession bullet by the skin of its teeth.
This is not an unfamiliar tale. In the 2008 financial crisis, Gold followed stocks downward as panic selling took center stage. But when the fog of the crisis lifted, revealing its accurate scale, investors sought refuge in Gold, catapulting its price up by a staggering 170% in the three years following the collapse of Lehman Brothers.
Then we turn back the clock even further. The early 1980s recession saw Gold at its then-all-time high of $850 per ounce. The key to understanding this lies in that Gold was already riding the wave of a strong bull market fueled by high inflation, geopolitical tensions, and a weak U.S. dollar.
The world now stands on the precipice, peering down at the abyss of the oncoming recession. An inevitable conclusion is nearing: it’s time to go long, Gold.
Gold breached the $2k fortress earlier this year, subtly revealing the hushed truth – nations had been cowering in the shadow of a recession, their pride preventing the admission. JPMorgan’s age-old adage rings louder now than ever, “Gold is money. Everything else is credit.”
The crypto space, once a promising contender, now reels from the onslaught of the SEC. Crypto traders like myself yearn for the day Bitcoin is recognized as a haven akin to Gold. Yet, with the SEC poised for a Tarantino-esque showdown, it’s a waiting game.
The West’s battle against recession has seen better days. A tsunami of FUD – fear, uncertainty, and doubt – is on the horizon, ready to wash over investors. While the media prepares to launch an onslaught, ‘smart money’ investors are quietly stocking up on Gold, prepared for the looming storm—the murmurings of ‘Long Commodities’ echo across trading floors, a mantra for the prepared.
As the conventional investor scurries in fear, the savvy, the smart, they bide their time. The world stands on the brink of a confidence crisis, and the calm, the prepared, the ones whose ties match their socks, will weather the storm.
Admitting recession is a bitter pill seen as a sign of weakness by some global superpowers, especially amidst the ongoing war on the USD. As the BRICS nations rally to trade out of the USD, uncertainty grips the market. The U.S. is cornered, its mountain of debt casting a daunting shadow. Crypto, the renegade currency, poses a significant threat to the USD in these troubled times. The value of the USD is under siege, and investors are making a beeline for the proven refuge – gold.
While oil makes waves thanks to the recent OPEC cut, Gold remains the beacon of safety. Remember, Gold won’t pave your road to wealth; it will merely preserve it. History has taught us this repeatedly, as during the 1980s and 2008 financial crises. As the world gears up for a wild ride, Gold at $2.5k looms on the horizon.
The rollercoaster has begun its ascent. The track ahead is shrouded in darkness and uncertainty, the descents and loops unpredictable. But one thing remains sure – the glimmer of Gold at the end of the ride. Fasten your seat belts, grip the handles, and brace yourself. This is the rollercoaster ride of our lifetimes.