Why People Have Always Held Gold / Commodities / Gold & Silver 2020

The current phase of the gold bull market, which started lastyear, is – we believe – the third and final wave of the secular bull run tracking back to 2001.

It's going to create a tidal bore of immense size and power. Awave that those who hold the metal (and silver) can ride asinsurance against state-sponsored value-destruction of a country's currency,and as real money that cannot and has not ever gone to zero in recordedhistory.

It could last 3 or 4 years, until the end of this decade... orbeyond.

Yes, the time will come when we want to be mostly out of goldand silver, with one marker to watch being the Dow/Gold Ratio, but that time isa number of years in the future.

In any event, diverse energies (and rationales) are buildingaround the globe, which should make this a run for the record books – a ride you really don't want to miss!

This time, gold will break out – possibly by the end of 2020 and rise to a number that mostinvestors can’t begin to imagine. The price will be a function of how long it takes for higher rates of inflation to kick in from the stagflation environment similar to what took place in the late 1970's.

As a papercurrency-only holder these days, "Do you feel lucky?"

A "from-the-heart" talk about what holdinggold really means to people…

The following accounts about what gold means on a personal levelcame to me unsolicited and fairly close to each other time wise. The first isfrom a commercial airline pilot with deep prior life experiences in Europe andthe Middle East. He wrote:

Gold does not deteriorate or tarnish. Thesetraits give it an ability to last forever, and transcend through differentdimensions of time. Humanity is acutely aware of both its own mortality and theshort time we get to exist in this universe. In our collective view there isonly one who is immortal, transcending time and space, God…Whoneverdies.Livesforever,changingonlyinformanddimension.

Gold comes very close to duplicating thesetraits, but without the imaginary human abilities that religion has assigned toa supreme being. I think people instinctively want to be close to immortality –capableofbeinginhope,appreciation,andenvyfor(gold's)abilitytolastindefinitely.

Byholding a gold coin in your hand, you are interacting with an immortalsubstance. If we could construct a human made of gold, she/he would liveforever, but that’sanotherstory...

The second comment comes from a colleague in the United Kingdom:

Hi David, I listened and reflected lastweek for many hours to a multitude of views on the future of gold and silver.At the end, in a state of confusion, I remembered what my Dad had said to memany a time:

1) One can never have enough physical gold.

2) I have NEVER sold a milligram of goldEVER. I only bought, and then bought some more.

3) There is no such thing as cheap orexpensive gold, only gold that is available or not. And when it's unavailable,it is too late.

4)Don't try to outfox the market, just buy when you have funds. Protect yourselfagainst yourself. Don't waste time and energy. Simply buy and squirrel it away.

Beware the summer doldrums…

As Jim Rickards says:

Right now, even though the gold market isrelatively quiet, in a broad sideways to higher trend on the charts, in thisperceived calm –traditionalsummerdoldrumsnotwithstanding–precious metalscanbesetoffbyanumberofunexpectedevents.

A driver is panic buying in response to anew disaster. This could take the form of a ‘secondwave’ofinfectionsfromtheWuhanvirus,afailureofagoldETFortheCOMEXtohonorphysicaldeliveryrequirements,oravictorybyJoeBideninthepresidentialelection.

Rightnow, the gold market is not priced for any of these outcomes. It won’ttakeallthreeeventstodrivegoldhigher.Anyone(ofthem)woulddojustfine.Butnoneofthethreecanberuledout.

We have gold in our cells…

Recently I learned something new from a book titled, Why Gold isa Better Way, by Adam Barrata. He wrote:

96% of the human body is composed ofOxygen, Carbon, Hydrogen and Nitrogen. The other 4% consists of other elements.We absorb small amounts of gold from our environment, and gold is present inour cells at birth. The average person's body weight is 154 pounds. It contains0.229 milligrams of gold...

Many people look up at the stars in the skyand feel small because the Universe is so vast. I look at the Universe in adifferent way. I understand that the Universe was created from an incredibleexplosion of matter. We, as human beings are a part of that matter.

WhenI look at the Universe I realize that the stars and the elements that make upits matter are inside of me, and rather than feel small, I feel vast.

Big buyerU.S. money is now flooding into gold.

My Conclusion: It's time to start feeling – and being financially – "more vast."

Hopefully, this essay has got you thinking about why humankindis more connected to gold than you ever thought possible.

Maybe it's why every time I've seen someone – whether it was a centa-millionaire or just "regular" folks like us – hold a gold coin or bar intheir hand... they started to smile. We may think we understand why they reactthis way, but now you know just how deep it goes. Yes – you and I are truly golden beings!

The gold we were born with – those 0.229 grams – is only worth about $14.That value is likely to go up quite a bit in the coming years as physical goldmakes new all-time highs. But it's going to be difficult for you to "cashin" with it!

Why not pick up some "hold in your hand" gold soon.Before summer wanes. While the metals and miners are backing and filling on thecharts. This could be a golden opportunity for you in more ways than one,perhaps the last best one for a long time.

David Smith isSenior Analyst for TheMorganReport.com and a regular contributor to MoneyMetals.com aswell as the LODE Cryptographic Silver Monetary System Project. He hasinvestigated precious metals’ mines and exploration sites in Argentina, Chile,Peru, Mexico, Bolivia, China, Canada and the U.S. He shares resource sectorobservations withr eaders, the media and North American investment conferenceattendees.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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