International Forecaster Weekly

Has it Begun?

The bottom line is that we are in some form of end game here and some form of reset is coming.

Bob Rinear | December 4, 2019

Winds of change. Something’s going on. In the last several months, we’ve seen Central banks go batcrap crazy buying gold. We’ve had talking heads from the IMF talking about how Gold is the base rock of stability if the monetary system fails. Can you imagine? An elitist banker talking positively about gold?

Then Wednesday, someone out of the blue, made an almost 2 million dollar options bet, that gold will be 4,000 dollars the ounce by June of 2021. That’s not chump change.

So, what’s going on out there? I think the answer is fairly simple. We’re in a Central bank bubble of epic proportions. Everyone, and I mean everyone, knows that they have to continue to inflate, print money and expand the debt, or this thing blows to hell. But then again, everyone and his brother knows that it can’t go on for ever. So, people are beginning to earnestly position themselves for the big reset.

I know you all think I’m simply a delusional gold bug. But let’s face it, Gold has been a fine thing to own since 2000. When we started buying at the 280 level way back then, people thought we were nuts. But, even though gold pulled off it’s 2011 highs, it’s still up 417%. Tell me about how gold is a relic???

Anyway, we’re in bubble land and I have no clue how far they can blow it, before they have to replace the current system with a new one. Maybe that’s DOW 30K, maybe it’s 35K , maybe it’s 40K. But at some point, this system IS going to be replaced, and the writing is on the wall for me. They ARE going to use gold as a basis for this new currency, or SDR, or digital money.

Multiple nations have repatriated their gold from foreign vaults. Virtually every nation of any status what so ever, has increased their gold holdings, some quite substantially. Why are they all doing that? Because they know, something wicked this way comes.

The move out of the US dollar is going to accelerate. Russia and china have all but completed payment systems that bypass the “Swift” system of global payments. The Russians have sold off virtually all their US treasuries, while simultaneously acquiring tons and tons of gold. A new global reserve is coming folks, there’s no question of that. And to me, it seems that no one’s going to want another fiat, make believe, “full faith” currency. They’ll want what ever we’re trading, to be backed by some percentage of gold.

I don’t know who placed the options bet that gold will be 4000 dollars by June of 20201. But I do know that it is VERY possible. Is it probable? Who knows. In the last 2 months, the Fed’s have conjured up 2 TRILLION dollars in overnight, 14 and 21 day repo’s. Is that normal? Hell no. The system is broken and from here on out, anything can happen.

Many people just say “Oh, there’s Bob talking about buying gold, that’s all he ever says!” and that’s wrong. I screamed that from 2000 to 2010, yes. But when gold got over 1600, I told my readers it had gone parabolic and I was NOT buying it. I said I would not buy again until it was under 1500. So it went to almost 1900, and yes I was happy, but I wasn’t buying.

Once under 1500, I was willing to buy again. Yes it dipped into the 1200’s, but I didn’t care. My vision has always been for 3K dollar gold and 75 – 100 dollar silver. I just don’t like buying bubbles and gold at 1700 in 2011 was a bubble. It’s not in a bubble now.

If you don’t have any gold, it’s my bet that it’s a good time to get some. Yes it’s stupid expensive. But it’s going to get stupider if that’s a word. So, buy half ounces. Or quarter ounces. Hell, I’m not even against buying grams of the stuff if that’s all you can afford.

People will laugh at you and say “look at the huge premium you’re paying” and they’re right. You pay a hell of a lot more for a pint of milk than you do a gallon. For instance, my neighborhood Walmart gets 3.89 for a gallon of milk. But it gets 1.60 for a pint. Well, there’s 8 pints to a gallon, so buying 8 pints would cost you 12.80 for a gallon of milk

Gold is the same but less. You’ll pay less for an ounce of gold than you would for a fraction of that ounce, certainly. But not to the magnitude of order in other commodities. A gold eagle coin is 31 grams of gold. Right now, a gram of gold is selling for about 60 – 62 bucks for a name brand. Okay, so 61 times 31 is 1891 and a gold Maple leaf is selling for about 1505. Is that 386 dollar difference a game killer? Heck no, if gold is going to 3, 4 or 5 K.

The bottom line is that we are in some form of end game here and some form of reset is coming. I have to believe gold is going to play a part and not at 1500 or 2K or even 3K. I see 3500 to 5000 gold in our future.

Is that nuts? Let me end with this. In 2001 with gold at the 328 level, I said in these very pages, that gold would hit 10,000 dollars an ounce within 10 years. I was roundly laughed at. But, it did just that. Now I’m saying that within 5 years, it’s going to be 3-5K. Am I nuts or will I be right? Time as they say, will tell. But I’d like to have some in any event. You should too.