Gold to Keep Charging Beyond US$3,000
micho has just broken this 2000
resistant and more upside is projected
this is because gold and silver have
been and still are consider money as
many country engag in massive money
printing true quantitative easing which
started in 2001 with the bank of Japan
the US follow suit when they fac with
subprime crisis in 2008 and and with
some success this model has been adopted
by many other countries in today’s
tutorial I will explain why money
printing will lead to inflation and
whether this country will be able to
reduce its Pace in money printing if
your answer is not quite possible then
expect that the precious metal to
continue to Trend up my name is Kow my
work in this channel as always is to
study behavor fa science and finance
discover correlation between different
markets and uncover potential
opportunities and before we get into
this subject please do take some time to
read into the disclaimer and let’s get
back to QE again QE is where these
central banks buy into their government
debts and this create liquidity for the
market and funding for the government
expenditure but it also creates
inflation over the longer term when too
much of it is printed it cause a
currency
dilution and QE is started by the
Japanese and not the Americans and now
many countries that we could see here
are getting into it and it seems to me
that there’s no way of turning back and
why does money printing cause inflation
and let me use this example about
Cheesecake imagine you are the central
bank and you have this close economy
economy of a population of 10
individuals and today is Monday you have
printed
$100 and you have 10 cheesecake to be
distributed or to sell and you evenly
distributed this $100 to 10 person so
each of them get $10 and each of them
buy one cheesecake so every one of them
got a cheesecake for $10 and the cost
price for one cheesecake is $10 and now
on Tuesday you decided to print $11,000
and you evenly distributed this $1,000
to 10 person so each of them get $100 us
and each cheesecake today will cost
$100 and the
inflation is that yesterday was $10 and
today is
$100 the inflation is 10 times and
that’s what happen when moneyy is
printed it will cause inflation but the
reality is the money printed always
isn’t evenly distributed and this cause
maybe the hardworking ones or the
smarter guys the top maybe 10 or 20%
will get most of it in this case number
one and number two got $500 each and
each cheesecake as each of them buy five
of it is still cost
$100 per cheesecake and the rest of the
eight will not have their cheesecake
they will feel hungry and angry because
they couldn’t afford the cheesecake at
$100 is it too late to get into goal and
let’s revisit the question that I posted
earlier whether these countries will be
able to reduce its Pace in money
Printing and I believe we share the same
answer not quite possible meaning as
long as money is printed meeting its
urgent needs all the time currency will
get diluted over time and this will
cause inflation to continue to Trend up
in this relationship inflation hatch
assets like the gold and silver will
continue to Trend up and in case you
feel that you are chasing after
something that’s very high in price
right now like gold silver seems like a
good option to get in
and when go is moving up it always tell
us that there’s an underlying health
issue in the financial market and go is
silver always move in tandem together
with go first go up first in financial
crisis followed by silver and let’s look
at the 80s inflation that the gold went
up about eight times and subsequently
the silver went up 32 times and in o08
crisis they go up went up seven times
and subsequently the silver pick up and
went up by 12 times and now the goal is
moving up and I believe is the inflation
crisis or you can call the bond crisis
or the U crisis and silver is starting
to move up right now and one of the key
reason why silver usually lack behind
the goal it is because of its weight it
is very heavy to have them physically
and I still remember in 2015 I bought
$10,000 worth of gold I did this
exercise in the bank I received a few
teen pieces of gold and then I cross
over the street I went to a Boolean
house and I spent
$10,000 to buy some silver and to my
surprise this guy that sell me the
silver brought me a bag of silver which
was very heavy I have a hard time to
bring to the car and I have a hard time
to store it in my house and it is
because of this inconvenience
during a crisis or inflation crisis
investor will first turn to go and once
go get a bit too pricey investor will
look at alternative and realizing that
silver also command the same value they
will start to invest in silver there’s
always trading opportunities in CMC
Markets go to the search feature and
type in silver you will find many
markets that you will like is there a
solution to this GL Global inflation
problems that we’re all facing today the
amount of money printed must be at least
match the production of goods and
services render and not excessive
Printing and with this responsible
approach we should be able to control
inflation for the time being I still
favor gold and silver stay you for my
coming tutorial remember to subscribe to
our channel the market are always
telling us on their next move feel free
to leave me any comments below I love to
exchange ideas with you really happy
that it stay true this tutorial you have
many great trading weeks ahead
Market analysis by Wong Kon How, Founder of Weipedia
More about Wong Kon How, PBM
Since 1995, Kon How started as a floor trader and subsequently founded Weipedia. His company, Weipedia, is engaged by exchanges and institutions such as CFA, CME, EUREX, SGX, and HKSI to develop education programs. They also provide expert witness and opinion writing services to assist in the arbitration process for trading disputes. Kon How is often invited to share his views on the market and provide trading insights to industry practitioners and retail investors.
He specialises in the study of behavioral science or market psychology to identify macro trends and forensic price behavior. Kon How is an expert in technical analysis, investor profiling, risk management, and investing strategies.