The World Is Hoarding
Gold: This Was Just A Taste Of What’s To Come by Mac Slavo - SHTFplan.com
| February 25, 2016
Earlier this month, as retail
investors lost confidence in the global economy and broader
stock markets, an air of panic began to set in. Reports
indicate the lines were literally forming around the block
at gold stores throughout London and elsewhere. It was,
by all accounts, the very scenario one might expect in an
environment where trust in government and central banks
has been eroded.
But it’s only the beginning, explains Auryn
Resources executive chairman Ivan Bebek in an interview
with SGT Report, as nation states and large investors are
trying to get their hands on gold as fast as they can:
Before any big move in gold we have
always seen extreme volatility or volatility pick up.
This was just a taste of what’s to come in the next
few years… We’ll look back at this and be reflecting
on how minimal this move was compared to what’s going
to happen as we go forward…
It’s a smart money trend… they can see
where their countries are going… where the world economy
is going… it’s surprising how late they are to the party…
late to a very small door to get a bit of gold that’s
out there… it’s going to be a remarkable reaction when
that all comes to fruition. They’re just positioning
themselves for what’s to come and that’s what they have
to do. And getting back into the gold trade, the gold
business and hoarding gold… they’re doing that because
they see a very big gold market coming ahead like the
rest of us.
And while there is most
certainly big money moving into gold ahead of negative interest
rates, a potential ban on high denomination cash bills and
the global calamity to come, Bebek highlights the fact that
retail investors haven’t yet begun to get involved on any
meaningful scale. Many remain committed to the view of mainstream
financial pundits and entrenched analysts talking their
books, so they’re going to hold on to their more traditional
investments until such time that they see everyone else
panic. And when that inevitable rush to the exit door comes
they’ll be looking to shift their capital into safe haven
assets, along with the rest of the herd.
But just as there will be only one exit
door for the mob trying to sell, there will also be a small
entrance way for those looking to protect themselves with
When you took the 2011 gold
run to $1900… and you took the market cap of all the gold
companies in the world… they would have fit into one big
tech company on the NASDAQ. That’s how small the world
gold investing market is.
So, when you look at the size and scope of the money
that can come into the gold market… the door on the
way out and the door on the way in… it’s really small.
This is the start of the turn and it’s a very small
door, meaning there are very few gold investments to
make. In a few years there will be hundreds of gold
companies like ourselves, or even thousands like there
But that first wave is where all the money is made.
You can go back to 2002 – 2004 and you look at the first
wave and you look at what happens when gold starts to
move… what happens to gold equities… the 100%, 200%,
1000%, and 10,000% returns… those all can happen from
this point forward.
It’ll be the place to put your money. At the same
time, the early few years will be where most of the
money is made percentage-wise.
What we saw in London a couple of weeks
ago was a microcosm of what’s to come. Though there remain
those like former Federal Reserve Chairman Ben Bernanke
who say central banks and governments buy gold not because
it’s money but because it’s tradition, that narrative, says
Bebek, has fallen apart:
Five or six years ago they got onto
that page, but now they can no longer say it. When you
have China, Germany, Europe and all these world economies
believing that it’s not a tradition… that they need
to own it as a currency… it doesn’t matter what they
say because the demand is so big worldwide… actions
are bigger than words… the world is hoarding gold… they’re
starting to go long gold… so that defeats the whole
argument they have been making.
We know for a fact that the smart money including
major global players like George Soros and Carl Icahn are
gobbling up all the gold they can get their hands on. When
the rush for the exit in global equities starts – and you
better believe it will – there will be an equally panicked
rush into safe haven assets.
We literally saw how small the door was as
people lined up to get their hands on physical gold. Now imagine,
as Auryn Resources’ Ivan Bebek noted, what that line will
look like on a global scale and what it will do to gold prices.