Why This “Safe Asset” Could Ruin You

If you’ve been reading the last few articles I’ve written (here, here and here), chances are you’ve figured out something very important about me…

I am NOT some hyper-inflationist, gold bug, “End of America” doomsday peddler.

I am, however, an economic realist who is willing to look at hard data and facts when I make forecasts.

And when you start to look at the FACTS about gold… there’s just no chance in hell it’s going to $2,000, $5,000, or $10,000 anytime soon.

Why? Two reasons.

#1 Gold IS NOT currency like so many alarmists would have you believe.

It’s a commodity. And just like every other commodity, it goes through cycles.

Over the last decade, it’s not just gold that soared. Nearly every major commodity has had a great boom:

  • Silver went up 603%…
  • Heating oil rocketed 1,313%…
  • Nickel 1,273%…
  • Crude oil 1,205%…
  • Lead 870%…
  • Copper 606%…
  • Zinc 616%…
  • Tin 510%…
  • And wheat 500%.

But commodities peaked between 2008 and 2011, and the sector won’t rebound again until around 2023 or so.

From around 2023 forward, I expect to see the biggest commodity boom in modern history… when commodity-intensive emerging countries will drive most of the global growth. That is another thing that demographics clearly tells us decades out.

And reason #2: Gold is a great inflation hedge, but not a crisis hedge.

Look. I’m not a gold hater by any means.

In fact, I respect many gold bugs. They have a strong antenna for financial crises.

The problem is, not every financial crisis is the same. A deflationary crisis like the 1930s is different than an inflationary one like the 1970s.

Is gold a great inflations hedge? Yes!

But we are NOT headed for hyperinflation after this next crash. In fact, my research proves the complete opposite is going to happen.

Here’s what happened in 2008 to gold…

As we started to see deleveraging, the price of gold dropped like a stone.

Yes, it turned around once the Fed turned on the printing presses… but all it did was delay the inevitable (and very painful) deleveraging/default cycle.

The piper eventually needs to be paid… and the Fed already used their get out of jail free card. There’s simply no way they can print enough money to inflate their way out of this debt crisis and delay this any longer.

And when you destroy dollars (i.e. you erase debt), that deflationary pressure is going to crush gold…

Which is why I want to share a highly controversial video with you today about what’s coming next for gold…

Harry Dent Signature

Harry Dent

P.S. If you own a single ounce of gold right now… PLEASE click here right now and watch this shocking video.

In it, I’ll expose one of the biggest lies most investors believe about gold… and why it could be the absolute worst investment you’ll ever make.

P.P.S. In principle, gold is a hedge against a weaker dollar. But there is nothing right now that indicates the dollar will weaken, for a variety of reasons.

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