The graph simply speaks for itself.
So, if the worst thing to do is to wait until disaster strikes, can we see disaster coming? It really all depends on how much we are watching the signs. One commentator put it very well, I felt, in concluding that many "Financial Seismographs signal a Monetary Earthquake." If you have time, the entire article is worth a read. In the middle of the article he drops a telling line, "For the pundits that are cheerfully praising the highs in the stock market, it should be noted that, when put into perspective, stocks remain well below gold’s quadruple rise since 1999" and backs it up with hard facts in the form of chart showing Gold's return vs. the S&P500 from December 2009 (so just before 9/11) to 1st May 2015.:
But, how is all of this affecting us in the U.K.? Apart from those directly affected by the recent stock market falls and bounces, is it really noticeable to you and I? A few weeks ago, in our blog entitled, "How to Handle Physical Gold and Silver in a Stock Market Crash" we mentioned keeping an eye on oil prices, as a signal for increasing geo-political tensions in the oil producing nations in the gulf and middle east. But this is directly affecting us in the U.K. in another way. The continuing fall of crude oil is causing "no-flation" pressure on the U.K. economy: "Inflation edged down to zero in August amid a renewed fall in fuel costs. Analysts agreed. "Looking ahead, inflation could yet drop back into negative territory before the end of the year." (The Telegraph, 15 September 2015) So, don't expect a greater return on your savings in the near future. If that is the case, have you considered putting some of your savings into Physical Gold and Silver at this time? It is very easy to sell back, or you can invest in a few small coins or bars for the family as the ultimate Christmas present?
And if our inflation drops into negative territory, and we don't rise interest rates, while the U.S. does, what can we expect then?! I found this quote to be a little like listening to the characters down the rabbit hole in Alice in Wonderland: "I'm growing more sympathetic to those arguing that the Fed has now become a source of market instability, and skipping September [to rise rates] will raise the risk of more turmoil all the way through 2016," said Erik Nielsen, global chief economist at UniCredit in London. "Only in extreme circumstances should the Fed react to markets. Anything else suggests that they have lost control." (Reuters, 14 September 2015).
This is Alice in Wonderland reasoning, because isn't it clear that the Federal Reserve and the fiat currency experiment, since its decoupling from the Gold standard, has always been a method towards financial chaos?
I loved the following graphic this week. It shows What the world would look like if countries were the size of their stock markets. I also didn't know that Russia has a bigger surface area than Pluto! But although for a moment I felt proud of our feisty little island, I also then realised that this means our economy has a larger exposure to the health of the other global stock market players. So it really is worth keeping a watchful eye of international markets and political events that affect those markets. Also, this article in the Business Insider was telling this week on the stock market's own confidence in itself, or lack thereof: "Now, the idea that 1) the stock market is currently in a bubble and 2) that this bubble is being inflated in part by — or in spite of — our fears is not a new theme for [Shiller, the author]....in multiple interviews this year Shiller has said there is a "bubble element" to what we're seeing in the stock market while reiterating his call that this stock market rally is... more or less devoid of optimism about the future." After researching with those who work in the stock market itself, Shilller found that confidence in the stock market is actually as low as it was in 2001. That, incidentally, is the 14th anniversary of the crash of 2001, seven years before the crash of 2008!
Last October's Surprise Market Shock:
This week saw the beginnings of the "Christmas isle" in my local supermarket and I must admit I spent a couple of minutes mulling over forthcoming stollen cake and chocolate treats. But last year a bombshell hit the Christmas market, the anniversary of which is in just a few weeks time! The bombshell was the shock announcement that Cadbury's were discontinuing the sale of gold chocolate coins, the traditional stocking filer! Headlines swept the mainstream tabloids and broadsheets, as thousands flocked to buy the cheaper available alternatives: "Poundland chiefs even referred to the chocolate gold rush as 'mass hysteria'" while "Twitter users were horrified and begged Cadbury's new and controversial American bosses to reconsider."
Now, in all seriousness, there is a moment from which, in any real economic crash, one cannot get hold of the safe havens of physical Gold and Silver coins, and bars. So, we at Bleyer suggest, why not save up a little extra and buy the real deal this Christmas?! Silver coins are currently on "sale" in comparison to their historic value.
The timeless classic, the American 1oz Silver Eagle coin is currently selling from just £15.44.
And if you are in the financial position to purchase a fair amount of Gold and Silver we would suggest, rather than buying a pair of gold plated shoe laces for £12,000, that you purchase a stunning 500g Gold Bar, while giving yourself a few hundred pounds change. It is far more practical and much, much easier to liquidate the return on your investment!
Still in the reach of a quite breath-taking stocking filler, or a personal present for your loved ones, would be a choice of our smaller Gold bars. A 1g bar of Gold is currently selling from £35.68. Each come in their own individually sealed packet, mounted on card, for a head-turning and unique gift.
Of course, between now and Christmas, we also recommend frequently visiting our Special Offers page, for Gold and Silver bars and coins on reduced prices.
If you would like to learn more, before the Christmas rush, please do call Bleyer Bullion on 01769 618618 and let one of our professional, friendly team help you learn more of our products.
And while you are doing your Christmas shopping, you will also be increasing the chance of saving yourself some V.A.T. and your family members some Capital Gains Tax. To find out which products offer which Tax advantages, please call us on 01769 618618.
But to conclude, and in all seriousness again, the themes of this week's anniversaries are interwoven beautifully is this summing up, via The Daily Mail financial section yesterday:
"Willem Buiter, a former Bank of England official and now chief economist at Citigroup, says there is a 55 per cent chance of another global slump in the coming years. Vince Cable, the former Liberal Democrat business secretary in the last Coalition government, insists the world is not heading for ‘a new Lehman moment’. But he warns of ‘unknown unknowns’, adding the global economy is ‘very fragile’ and the eurozone ‘is in a terrible mess’. Lord Turner knows what it is like to be taken by surprise. He was appointed chairman of the now defunct Financial Services Authority, a week after the collapse of Lehman. ‘We faced the biggest financial crisis in 80 years,’ he writes in his new book, Between Debt And The Devil. ‘Seven days before I started, I had had no idea we were on the verge of disaster. Turner warns that ‘excessive’ debt could cause the next crisis. Of course, he was not alone in being taken by surprise by the last crash. The Queen famously asked in spring 2009: ‘Why did no one see this coming?’ The answer, from the British Academy a few months later, was that there had been ‘a failure of the collective imagination of many bright people’. Seven years on, the storm clouds are gathering once again, as the world struggles to bounce back from the collapse of Lehman and its painful aftermath." (The Gathering Storm by Hugo Duncan, the Daily Mail)
We at Bleyer hope our blogs and news articles spur you, our clients and readers, to prepare for the worst while enjoying everyday life with your family, friends and loved ones. If you would like to discuss storage for your Gold and Silver, or buy a safe to store your own, or to simply take advantage of the excellent prices for physical Gold and Silver, contact us on 01769 618618 or email: [email protected]