We are seeing a 3-pronged bullish trend for gold over 2015 and beyond.
Being based in Europe we hear a lot of chatter based around repatriation of gold in 2015/16. The Greek crisis is turning into a wider EU problem and this is making many policy makers nervous. Most nation states want some sort of back up plan, and gold has historically been the back up plan or foundation backing the wealth of a nation.
This eventuality is extremely bullish for the price of gold in general. We even had the Swiss government talking about backing their currency with gold again and holding referendums to decide. The policy did not pass through into law but just the fact that major players are seriously considering this is extremely important.
We are also being the rise of decentralised crypto currencies like bitcoin. Bitcoin technology is still in it’s early stages where the internet was in 1994 so it’s usability is still a bit tech heavy but this will rapidly change in the same way that most grandmothers can now use an ipad with a fair amount of ease. Companies like vaultoro.com are working on backing bitcoin with gold. This enables billions of people worldwide to enter the global market place with the fluidity of bitcoin while backing their bitcoin with physical gold. This means people use bitcoin for the payment network and gold as the store of value. This is also extremely bullish for gold over the next 5 years as gold starts to be used to back the native borderless currency of the Internet.
The other factor that is bullish for gold and silver is the massive amount of so-called quantitative easing (money printing or counterfeiting value in plain English) that is happening across the world by central banks. This will inevitably end in a hyper-inflationary spiral. We know this because all currencies that can be printed out of thin air at an unending rate collapse. It’s happened so often in the past that it’s a scientifically repeatable recipe.
To hedge against this inevitable inflation people that are thinking about their retirement fund will be well placed to start a savings plan in gold as nobody knows what their currencies will do. The Euro is only 16 and is already in a mess. People will want to exit from holding their savings in fiat and instead place it in land, gold, bitcoin and silver.