Today one of the wealthiest, street-smart professionals in the markets, who is also business partners with billionaire Eric Sprott, told King World News that the gold and silver markets are setting up for what could be a historic worldwide mania.
Rick Rule: “Gold is already in a bull market in every currency except the U.S. dollar. The U.S. dollar hegemony is more due to the fact that there is a lack of fiat competition among other currencies then an underlying strength in the U.S. dollar. In that sense the gold market reminds me very much of the gold market that existed in 2000 – 2001….
Continue reading the Rick Rule interview below…
“That was a period where gold was in a bull market in all currencies except the U.S. dollar. But gold then began to increase (very dramatically) in U.S. dollar terms, while the U.S. dollar was still doing well against other currencies in 2001.
This Is When The Gold Bull Market Really Soared
When the dollar rolled over in 2002, you will remember the beginning of an epic bull market that took gold from $252 an ounce in 2000 to $1,900 an ounce in 2011 — a seven-time increase in price.
The Chinese have been consistently been building out the infrastructure to add gold as an asset class, both among their citizenry at a retail level and also in terms of the center (at the central bank level). Last week the Bank of China became part of the (London gold fix), which is a long overdue measure giving China its rightful status as the largest gold market in the world.
And the Chinese have been very active behind the scenes trying to rearrange the mechanism of the global settlements mechanism. They want to see both the renminbi and gold play a larger role in the upcoming IMF SDR. But also in terms of multi-lateral banking, where the Chinese are also beginning to say that the IMF and the World Bank represent U.S. interests more than they represent global interests.
So the Chinese have been very active in promoting their own development bank. I think the rise of a multi-lateral world order, rather than a hegemonic one, will be good for gold and not good for the U.S. dollar.
And the third thing, Eric, has to do with confidence in this debt-based financial system worldwide. There has been a saying ascribed to JP Morgan that ‘Gold is money. Everything else is credit.’ And there is astonishing worldwide complacency in a credit system that I see as fundamentally and mathematically challenged. There are a lot of obligations without the apparent ability to service them.
Is The Gold Market Setting Up For A Historic Worldwide Mania?
If we have something that challenges the faith in the credit-based system, and I’m not talking about a major shock, I’m talking about even a subtle sort of shift in confidence, I think gold could do very well, perhaps even exploding to the upside.” ***KWN has now released the outstanding KWN audio interview with Rick Rule, where he discusses the gold and silver markets, commodity markets as well as the big picture for the world going forward, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the powerful KWN audio interview with Nomi Prins, where she discusses the gold market, the coming financial destruction that is in front of us, what investors can do to protect themselves and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: The Shocking Truth As Worldwide Economies Barely Survive CLICK HERE.
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The audio interviews with Rick Rule, Nomi Prins, Gerald Celente, Bill Fleckenstein, Stephen Leeb, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, John Mauldin, Egon von Greyerz, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.