Gold prices in the last 10 years? In 2019 gold prices are higher than they ever were in the last 6 years! In this article I describe what this means and what you can do about it.
On the graph below you can see the prices in the last 10 years. A period from November 2009 to November 2019 is covered.
Gold prices tell something about the health of economy
Since August 2019 gold prices are higher than they ever were in the last 6 years (since 2013).
The price of gold rises usually during a period of global economic decline (or economic instability)!
The fact that today gold prices are elevated is not surprising since every 7-8 years the world goes through an economic decline (aka recession).
Remember the big 2008 recession? Then the 2015?
The next global recession should be roughly in 2022 – 2023. More accurately, this is when the recession will be at its peak. In other words, the recession has already started and it looks like it will deepen in 2020.
During the period of recession, the price of gold rises because people start to buy more gold. When the demand for gold increases, naturally, its price goes up.
Why do people start to buy more gold? Simple. Gold is a tested store of value. Put another way, gold maintains its value during economic recessions, economic instabilities and even collapses. In fact, gold not only maintains its value, it increases in value.
New financial system is coming?
Besides the coming global recession, there is another crucial aspect that needs to be considered. The US dollar as a main reserve currency now is older than 75 years old.
Keep in mind, that the average life expectancy of a fiat currency is 27 years old. (After that a currency becomes worthless)
This means that the US dollar is coming to the end of its lifespan.
The financial system, which is based on the US dollar today, is destined to vanish sooner or later. In my opinion, it can happen in 2020s.
What does it mean?
It means that any time within the next 10 years there can be a switch to a new financial system.
This new financial system will be based on new money.
There are chances that this new money will be backed by physical gold. Why gold? You will see why if you study the cycle of money.
So, not only there is another recession roughly in 2022 – 2023, there also may be a switch to a new financial system in the same decade.
To learn more about the US dollar and today’s financial system, and how the past predicts the fall of both, watch The Hidden Secrets of Money series.
What should you do?
What should you do about the coming global recession and the new financial system?
If you prepare yourself, you won’t have to worry like 90% of people about losing your job, savings or home (or at least worry less).
How to prepare?
1. The tried-and-trusted way is to start acquiring gold (and silver). In other words, start exchanging some of your fiat currency (US dollars, euro, etc) into gold.
Can’t afford to acquire gold in ounces? Do it gram by gram with Karatbars.
The sooner you start the better.
In the end, gold is valuable, no matter the period, geography or who you are. Whether the world is in the middle of economic decline or boom. Or whether you are in Africa, Asia or North America. Or whether you are a professional investor or a school teacher.
2. In addition to acquiring physical gold, also acquire assets that are backed by physical gold.
Remember, whatever you do to prepare yourself for economic instabilities and changes, don’t put all your eggs in one basket.
In other words, the optimal solution is to invest in diverse assets. So, own physical gold (at home and in vaults), have gold-backed assets, have some silver and have some land.
Have a question or an opinion? Let me know below 🙂