GLOBAL DEBT, DERIVATIVES, GDP, FUTURE LIABILITIES
Two months ago I wrote a Blog titled “GLOBAL DEBT, GDP ...and Unfunded Future Liabilities..!!”
For the ones who missed it here is the link....
https://steemit.com/gold/@stephenkendal/global-DEBT-gdp-and-unfunded-future-liabilities
Since I posted this Blog a lot has happened and I wanted to revisit the Blog and reiterate my concerns about the Global UNFUNDED FUTURE LIABILITIES which currently stands at COLOSSAL +$750 TRILLION that no one still seems to want to talk about.!!
As you will see from the above I wanted to once again show the relationship between DERIVATIVES, DEBT, GDP, ASSETS, UNFUNDED FUTURE LIABILITIES and their relationship to GOLD and SILVER.
In order to put things into REAL PERSPECTIVE the current Global Valuations are approximately as follows...
DERIVATIVES = $1,500 trillion.
UNFUNDED FUTURE LIABILITIES = $750 trillion.
DEBT= $275 trillion.
ASSETS = $275 trillion.
GDP = $75 trillion.
GOLD = $7.6 trillion.
(175,000 tonnes* = 5.6 bn ounces)
Current Price = $1,200 oz.
SILVER = $0.7 trillion.
(1,450,000 tonnes* = 46.4 bn ounces)
Current Price = $16.50 oz.
*All the Gold and Silver available on the Planet, above and below ground, mined and to be mined.
The slide has been scaled as best I could, but unfortunately due to the sheer COLOSSAL size of DERIVATIVES in comparison to the total valuation of GOLD and SILVER the chart is for representation purposes only and is not to scale.
As explained before the purpose of this Blog was to attempt to demonstrate that the sheer MAMMOTH SUM of the UNFUNDED FUTURE LIABILITIES dwarfs everything especially GOLD and SILVER..!!
In other words should ALL Future UNFUNDED FUTURE LIABILITIES be backed by GOLD on the basis that all GOLD both mined and un-mined was available, the price of GOLD would need to be over $133,000 / ounce.
Should the same calculation be done for SILVER this would result in a SILVER price of $16,250 / ounce.
It should not come as surprise therefore that at $1,200 oz and $16.50 oz respectively both GOLD and SILVER are currently WAY UNDERVALUED.
The Global ECONOMY is in a bad way, a VERY BAD WAY, and people should be afraid, they should be VERY AFRAID.
These are challenging and unprecedented Global Financial times and the responsibilities of the sheer MAGNITUDE of the UNFUNDED FUTURE LIABILITIES should not be ignored any more.
The current Global Financial Pressures of an ECONOMY that is in essence grinding to a halt with a an unprecedented growth in Global DEBT and UNFUNDED FUTURE LIABILITIES Exposure that is out of control the time is running out fast for any resolve to be effective.
Based upon the UNFUNDED FUTURE LIABILITIES alone which have currently NO WAY of being funded I am sticking firmly to the following Price Targets set to be achieved by 2021.
GOLD = $27,000 / ounce.
SILVER = $700.00 / ounce.
Thank you for reading and please feel free to share.
Stephen
The whole thing is so messed up. I imagine they'll wait until Trump gets in and try to pin it on him. Physical gold will soar. And when Trump goes along to inspect Fort Knox he'll find it empty...
"And when Trump goes along to inspect Fort Knox he'll find it empty..." Nailed it one. Most people still think that it is full of Gold..!! They are going to very disappointed..!! Stephen
Shared on Twitter✔ for my followers to read. Stephen
Disclaimer: I am just a bot trying to be helpful.
Hey @stephenkendal, you have my upvote for life if you could provide some sort of advice. If you could let me know how to go ''Long on Gold'' , is there any financial assets which i could easily trade and make a reasonable amount from?!
I'm a student, perhaps can invest around 2-5k USD, just to prepared for the future. Never been a fan of Gold, because its expensive and don't understand how buying shares actually grants me ownership of the gold. Should i actually be buying physical gold or like alternative like DigixDAO or Gold ETF's?
Interesting Post by the way
Hi @steemitguide.
Have you considered physical silver bullion. Unfortunately most people can't afford gold, but we believe that silver is the best affordable alternative well within reach of the average person. There is a saying in the precious metals space that "if you can't hold it, you don't own it".
We've told friends and family to stay away from ETF's unless they want to trade gold or silver (buy this week and sell in a month to lock in a quick profit. ETF's give you access to the gold/silver price but not the physical metal, in other words it's a gold/silver paper product and you don't own the physical metal).
Holding physical requires a long term outlook as you are holding a finite resource that can't be created on paper like an ETF. Once it's in your possession no one can take it away from you and that provides security in itself, just don't advertise it to everyone if you know what I mean.
Here are two short video's showing how gold and silver have performed against 11 different currencies over the last 25 years.
Gold/silver are very easy and simple to get hold of. Simply go for current standard 1 oz bullion coins or bars, they sell for slightly more than the current spot prices. Proof coins are more expensive and are basically bullion coins with a better (aka shinier) finish. They are also aimed at collectors. You can visit our education centre for more info.
There will come a time when gold/silver will become overvalued and it will need to be sold, with the profits put into another undervalued asset.
Enjoy your precious metals journey, you won't regret it.
Thank you so much for this reply! Really appreciate you sharing your advice.
Followed and upvoted!
Thank you a lot for your Post, it's really eye-opening! Followed and Upvoted
Thanks. It is very difficult to give investment advice without a full understanding of your risk appetite and how long you are looking at. From what I can gather from your question I would strongly suggest to revisit the physical as all other Financial Instruments are in essence the system. For a student I always suggest owning a small amount in physical, even if it was the odd coin or bar, as over your lifetime it will most likely be the best investment you will ever make. Hope this helps. Stephen
You mean the euphoria is about to end... why more people have not already gotten their financial affairs in order is beyond me. Gold, Silver and Bitcoin... sorry Steemit, I am collecting, but right now it is not a main store.
"...why more people have not already gotten their financial affairs in order is beyond me.." Could not have said it any better myself. Thanks for the comment and support. Stephen
Upvoted and resteemed!!
Thank you I appreciate the comment and support. Stephen
Hi Stephen, once again i enjoy another read from you, as i said before I'm a newbie at this but since I've been ready your articles its made me realized i need to seriously hope on the train now or else i'll be left behind, we don't want that, in saying that I'm going to check the buying of silver. upvoted and resteemed.
Thank you I appreciate the support. Stephen
Wow, when those bubbles burst, 2008 will seem like a little balloon popping.
Upvoted + resteemed.
People will wish it was 2008..!! When this pops, and it will, it will he 2008 x 10 ..!! Thanks for the comment and support. Stephen
Derivatives are worse than nuclear bombs. The time they will start to talk about this problem in mainstream media, the system will collapse straight away
Thank you for the comment I appreciate it. Hope you don't mind but I shared your comment Twitter✔ for my followers to read. Stephen
Disclaimer: I am just a bot trying to be helpful.