Between 1999, when gold bottomed at $250, and the 2011 peak at $1,920 there was only one major correction lasting 8 months in 2008. The ensuing correction from the 2011 top at $1,920 of almost $900 seemed to take an eternity until it finally finished in December 2015. During those four years, it was always clear to me that the uptrend in the precious metals was still intact although I must admit that I did not expect a correction of that duration. But after a long life in markets, patience becomes a virtue that is absolutely essential. If your investment decisions are based on sound principles at the outset, there is no reason to change your opinion because the market takes longer to accomplish what it must do.

Gold is the best protection against unprecedented risk

AmazonBasics Security ... Buy New $59.99 (as of 08:40 UTC - Details) We bought gold for our own account and for our clients back in 2002 at $300. At that time gold was unloved and undervalued. That is, of course, the best time to get into a long-term strategic investment. But it was never our intention to buy gold as an investment. No, we bought gold because we had evaluated economic and financial risk in the world economy and come to the conclusion that it was unlikely that the system would survive without major defaults, both sovereign and in the banking system. And as we know, the financial system almost went under in 2007-9. With $25 trillion of printed money, credit and guarantees the system was given a temporary stay of execution. But these $25 trillion was just the initial package. Since 2006 global debt has increased by $90 trillion-plus unfunded liabilities and derivatives of several hundred trillion dollars. This explosion of debt has confirmed the risks that we saw already back in 2002.

Physical Gold & Silver in your IRA. Get the Facts.

Financial system cannot survive

Now in June of 2016, I am absolutely certain that the financial system cannot survive intact. Global debt has gone from $20 trillion to $230 trillion, a more than 10 times increase in the last 25 years and none of this debt can be repaid with real money. Governments and central banks have totally run out of ammunition. In their desperate attempts to save the financial system, they have manipulated every single market and financial instrument. They Large The New English ... Buy New $12.99 (as of 01:25 UTC - Details) print money, they set false interest rates (now negative), they buy their own debt, they support stock markets and they also sell gold in the paper market. All of this action or deceitful manipulation is just creating bigger bubbles that will eventually lead to a total implosion of the financial system and all the bubble assets such as stocks, bonds, and property.

In addition, bank stocks in Europe are now showing all the signs of going to zero. Most major banks are down 70-90% since 2006 and many have fallen 25% in the last few days. The European banking system is on the way to bankruptcy. And many US banks like Bank of America and Citigroup are showing the same signs. The coming months will be extremely volatile and disruptive in world financial markets.

The problem is that no one is prepared for the coming shock. The world believes that the Shangri-La state that central bankers, led by the Fed, have created in the last 100 years will last forever. A privileged few have accumulated unreal wealth. Most normal people in the West believe that they are better off, not realising that their higher standard of living is based on government debt and deficit spending as well as a massive increase in personal debt.

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