For the most part, gold has not been seen as a pure investment over time because in the annals of history, it had been primarily owned and controlled by governments who used the metal as money in most societies. In fact, people easily had access to gold, or through their gold backed paper currencies, and used it for purchasing things rather than as a wealth protector, or as an investment.
But when the world went completely off the gold standard in 1971, the monetary properties of gold changed. And 45 years later, one analyst believes that right now could be the greatest time in history to own and invest in gold because the financial system has never been in a worse place than it is today, and the world is about to enter what will be known as the era of perpetual bonds.
I’ll dare to suggest this is the greatest time in history to own gold, and not because it is going “vastly higher”. It’s because gold now has more institutional respect than it has in decades.
“Perpetual Bond Thunder” is the new gold price driver in play, and it has the potential to influence major markets for many years into the future.
Japan may lead the world with a sizable launch of perpetual bonds that feature no interest rate and no maturity date.
Ben Bernanke is probably the biggest money printer in the history of America. He is now working hard to convince Japan to lead the world with a huge launch of perpetual bonds.
It’s a scheme to monetize the huge Japanese government deficit.
Perpetual bonds are known as “perps” amongst institutional money managers. If they are used in the manner suggested by Ben Bernanke and other top bank economists, they have the potential to allow Western governments to continue to operate huge fiscal deficits, with the only cost of running those deficits being the “minor inconvenience” of destroying the purchasing power of most fiat currencies. - Stewart Thompson of Graceland via Silver Doctors