The Most Obvious Trade in History!
For a moment, I want you to forget everything you know about gold.
Forget about the monetary history, government debts, bond bubble, pension fund crisis, unsustainable financial system, and even the recent news about Iran no longer trading dollars or Turkey demanding a gold-backed system… Also forget China and Russia’s enormous appetite for the yellow metal.
The fundamentals for an incredible run for the yellow metal can’t be overstated due to the collapsing supply. Everything else mentioned above is “literally” just the icing on the cake.
Last week, the China Gold Association, home to the largest gold producer on the planet, announced a second year of declining production (-6%).
Barrick Gold reported yesterday that it’s seeing huge production declines – a17.5% decline in total.
Barrick’s Acacia project in Africa actually declined 45% year-over-year!
In Nevada, they saw 9.6 to 16.4% declines at their projects. Peru was even worse, with a decline of 25% year-over-year.
In Argentina, the Veladero mine saw a cliff dive of 51%!
The stunning news didn’t end there; from what they did mine, they had much lower ore grades coming out of Nevada than originally projected.
Gold production has plateaued globally and is now in decline, yet demand continues to surge higher.
Looking at the case for peak gold supply and then factoring in all those things I asked you to forget about for a moment, like China’s accumulation of the metal, major challenges approaching the dollar, and our own suicidal bond market, you can see why I believe owning gold today is the most obvious trade in history.