“The world will enter into a catastrophic financial depression by the end of 2016” according to Gold De Royale
(PRWEB) October 16, 2012
“The world will enter into a catastrophic financial depression by the end of 2016” according to Gold De Royale, Australia’s largest Swiss gold bullion dealer.
The US Federal Reserve has unleashed Quantitative Easing 3 also called money printing round three which will eventually lead to the demise of the US Dollar and cause hyperinflation. “Most of the time people don’t remember history. But history always repeats itself”, said George Vo, Sales Manager of Gold De Royale.
In 1926 there were huge warning signs of the coming great depression, but many people ignored the warning signs. By October 1929, the US stock market had collapsed dragging many countries into the great depression.
Once people wake up to the fact that the US Dollar is losing its value it will lead many people to withdraw their deposits from financial institutions which will eventually lead to a bank run. Much of the damage that happened during the great depression was due to people withdrawing deposits from banks.
"It is only a matter of time before people realise that the US Dollar is losing its value. With QE III in action we are currently seeing an unprecedented demand for gold bullion from investors in Australia. Demand is so high that we literally have to work 24 hours to keep up with demand”, said George Vo.
Inflation happens when government monetary policy is not robust. Hyperinflation happens when there is an excessive money supply. One would expect gold bullion prices to do extremely well in a hyperinflation scenario. In 1919, the price of one ounce of gold in Germany was 170 German Papiermark and by 1923 one ounce of gold was worth 87 trillion Papiermark in Germany. The well-known case of hyperinflation occurred in Germany during the Weimar Republic from 1919 to 1923.
The historical record is clear on what happens when money printing gets out of control. In 2000 the price of gold was at $280 US dollars per ounce. Today it is hovering around $1760 per ounce. Now is the time to prepare for the inevitable because once hyperinflation starts, time has already run out.
For more information about hyperinflation and on how to invest in gold and silver bullion visit the Gold De Royale website http://www.goldderoyale.com.au