The Declining Level of Confidence in Govt. & Gold

Confidence-wide

QUESTION:  Martin, You have said on multiple occasions, that gold will only rise when the Market loses confidence in the Gov’t.This Mid-Benchmark Rally you note here in this article.is this a temporary blip???, temporary rally???, that will still pop and go bust to the low side???

Or are people losing Confidence in Gov’t now??? is that happening hence this rally???

Thanks

SH

ANSWER: Of course there are many of us who have already lost our confidence in government. Odds are you would not be reading the blog otherwise. Granted, more than three million unique viewers read this blog. We are still well below the 10% mark of the U.S. adult population, which is about 23 million, so we are far from that level at this time.

Nevertheless, Donald Trump’s rise in the polls reflects this growing dissatisfaction with government. Social Security goes bust in 2017, and our computer is projecting we will most likely see a collapse in confidence between 2017 and 2020.

Therefore, it is still premature to expect a breakout just yet. Governments are still moving toward negative interest rates. This will help shift capital from PUBLIC to PRIVATE. 

The volatility is still insane. Gold should make a new low this year. However, since we DID NOT get the sell signal in gold at year-end, this is the bounce, so do not expect it to be a breakout just yet.


Population, 2014 estimate 318,857,056
Population definition and source info Population, 2010 (April 1) estimates base 308,758,105
Population, percent change - April 1, 2010 to July 1 definition and source info Population, percent change – April 1, 2010 to July 1, 2014 3.3%
Population definition and source info Population, 2010 308,745,538
Persons under 5 years, percent definition and source info Persons under 5 years, percent, 2014 6.2%
Persons under 18 years, percent definition and source info Persons under 18 years, percent, 2014 23.1%
Persons 65 years and over, percent definition and source info Persons 65 years and over, percent, 2014 14.5%
Female persons, percent definition and source info Female persons, percent, 2014 50.8%