Australia – A Fresh Look at Down-Under
QUESTION: Dear Martin,
I firstly wanted to commend you for all the valuable information contained in your website and for your vigilance and generosity in providing this free of charge. I met you at a Seminar in Surfer’s Paradise, Queensland some years ago with Jack Houghton. I had invested in your Australian gold fund and recall making $150,000 in one night – Happy Days!!
You have stated that the only place to invest money is in the US Share Market. As an Australian living in Australia, I am wondering whether this advice also applies or are there other alternatives for investment here.
Kind regards
GO
ANSWER: Yes. They were fun days, but I also rarely got much sleep to produce that track record. Nonetheless, I pointed out that India was an exception and the political reform could prove to be interesting. The AllOrds has to close above at lease 507000 at year-end to signal it is building a base. A yearly closing above 647000 is required to get the breakout. You can see that the high remains 2007. Despite the rise in gold into 2011, the AllOrds still fell into its low for 2009. This is good, for it shows that Australia is not just a gold play. The potential for a 2017 high still exists as long as the 2009 low holds.
We are starting to see a reversal in the political trend Downunder. The new budget is ending the Age of Entitlement as the socialists call it. The socialists keep expecting more and more and just rob it from someone else. But this trend is collapsing economically. Australia is starting at the beginning of the curve as we are seeing in India. This is well ahead of the USA and Europe. The AllOrds is something to watch for if it indeed starts to sustain recent gains, we can be looking at the high in 2017.
Demand for Gold in China & India Collapses by 55%
The latest tracking of gold being consumed in China and India has revealed a declining demand. Mainland China’s demand for gold fell 18% in the first quarter of the year as investors bought fewer bars and coins, offsetting record demand for jewelry, according to the latest trend report from the World Gold Council based in London.
The World Gold Council reported that Chinese purchases declined to 263.2 tonnes, despite a 10% rise in jewelry consumption to a new record levels. The decline in investment demand for bars and coins was a staggering drop of 55% to 60 tonnes.
Meanwhile, there remains the insistent forecasts of some who still argue that Gold, and nothing else, is going to $50,000 while retaining its full purchasing power, based on arguments on the Central banks balance sheets how they are accumulating Gold and SDR in their assets holdings. This of course is just insane. It does not even grasp that government is going in the opposite direction raising taxes, hunting money, and by no means would ever adopt a gold standard for then politicians would have to stop rolling out unfunded programs. This nonsense will continue to cause massive losses among the naive and once they lose their shirt, they do not return so easily.
Why Conspiracy Theories Give Way Too Much Credit to Mythical People
COMMENT: Mr. Armstrong; I retired this year from …. where my boss has gone to these yearly Bilderberg meetings. I just wanted to say that they are indeed as clueless as you report. Quite frankly, many follow your writings for the greatest fear is the Sovereign Debt Crisis and the global hunt for tax money. There is a rising concern also with respect to your war cycle that is quite famous behind the curtain as you put it. The consensus is you are spot on. They are also beginning to grasp you have been correct also about Europe. Precisely as you have written, there was the common opinion that the federalization of Europe would prevent future war. They now see that such a theory was fundamentally flawed. My boss said you were also correct that the bureaucrats in Brussels are now defending the euro to preserve their jobs at the cost of everything else. I know you know these issues for you even know many of the attendees of these meetings including my boss. I fear as you say, no one is in charge and this is a runaway train.
Yours sincerely
KFB
REPLY: Yes I know. This is now all about maintaining power at all costs and that end justifies the means regardless of the consequences.. Governments are now exploiting the bankers and they are targeting the rich. This is going to get very nasty. It is a shame that the conspiracy propagandists focus on private groups rather than government. They do not realize the formation of the euro created tens of thousands of jobs and that will never be breached.
