Central Bank Blowup? Buy Gold

11/03/16 10:21AM EDT

Central Bank Blowup? Buy Gold - explosion

Central bankers around the globe have cut interest rates almost 700 times since Lehman Brothers’ collapse. That’s not a typo.

Here’s the “Central Banker Playbook”:

Cut interest rates → Devalue the currency → Stocks up!

It’s a monetary mirage. The Fed, ECB and BOJ have $12.4 trillion on their collective balance sheets. Again, not a typo. The global money supply is currently $100 trillion. Meanwhile, total gold mined globally is just $7 trillion.

We suggest you buy some.

Gold is free from central bank tinkering and the principal beneficiary of any blowup in the central planning #BeliefSystem. Investors agree. Gold is up 22% year-to-date. As economic growth slows throughout the world, we expect central bankers to double down on their failed policies (think helicopter money).

We’d buy more gold

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