The Beginning of The End for The Euro & An Interview w/ A Resource Investing Legend

Written by Gerardo Del Real
Posted May 8, 2017

For over a year I’ve warned that geopolitical events and the collapse of trust in governments worldwide would play an important part in the currencies, stock, and precious metals markets.

We’re living through interesting times. For the first time in modern French history all the mainstream centre-right or centre-left parties of government that have ruled France since World War II did not make it to the second round of a presidential election.

Although Marine Le’ Pen and her “France First” message (sound familiar?) resonated with voters tired of the same bureaucratic double talk, that was not enough and the centrist independent Emmanuel Macron has won the French presidency.

Although Macron won by a 65% to 35% margin, Le’ Pen’s votes are a historic high for France’s far right.

He promised to unite a divided France, saying: “I will do everything to make sure you never have reason again to vote for extremes.”

Macron — who will be France’s youngest president at 39 and has never held elected office — is by no means a vote for the establishment. A year ago a Macron presidency seemed unlikely at best.

The mainstream has been firmly behind Macron — the lifelong bureaucrat — who has outlined six main priorities: education, work, economic modernization, security, democratic renewal, and international engagement.

Details on how to make good on those promises have been vague.

Regardless of the outcome of this election one thing was always clear, the Euro is heading into the abyss.

Martin Armstrong has explained the situation well. He recently wrote:

"The Euro is doomed because especially if Le Pen loses, Brussels will be relieved and proceed as usual. The same problems will merely exist and no reform will come forward to save the day.

"A Le Pen victory will actually provide a soft-landing for the EU and force it to begin to look at what it is doing so terribly wrong. A Macron victory will doom the EU to a complete collapse and a hard landing in 2018.

"Why? Brussels will wipe their brow and cheer the end of “populism” and that means they will continue down the same road without any reform. BREXIT should have sparked some internal review. Instead, they just blame the Brits and move on."

Like the victory of Donald Trump here in the U.S., the fact that Macron and Le’ Pen were the two candidates on the ballot represents a shift from traditional politics.

People are realizing that the institutions that have been in control — on a global basis — have only served the very well-off and connected.

Regardless of political affiliation, the wealthy and connected have done very well.

The vote away from the mainstream parties — Trump is not your typical Ronald Reagan republican — reflects the voices of people who want real change.

First people ask. That box has been checked. Then when that doesn’t work — and it never works — people vote out the mainstream parties. That’s happening now. When that doesn’t work, history tells us we get revolution and civil war.

Europe is up first.

Welcome to politics in 2017. Keep in mind that along with French elections, we also have British and German elections this year.

The dollar has seen recent weakness while the Euro has bounced higher. This is the head fake before the next leg up in the dollar and the next leg lower for the Euro.

Capital will always seek safety in times of confusion. In this case that will express itself as capital flight from government assets into private ones.

I’ll repeat what I’ve been saying. The move to safety will exaggerate moves higher in the dollar, the U.S. stock indices, and when capital begins to rotate out of bonds, the precious metals market.

2017 is setting the stage. I expect weakness in the juniors and the precious metals space over the summer heading into the fall.

Despite that there will be plenty of opportunities to make money.

2017 is the time to position yourself for the really big gains. Like in real estate, you make a lot of your money by buying right.

I recently had the opportunity to interview Jeff Phillips, one of the most respected people in the natural resource space. Someone who has made a fortune in the space over the course of more than two decades.

The sixteen-minute interview is filled with insights on what he looks for in an investment, how he identifies red flags, what he likes in the natural resource space, how he approaches downturns in the market, and he even shares some companies he likes.

If you’re serious about making money in the resource space I highly encourage you to listen to the interview.

To your wealth,

gerardo-sig

Gerardo Del Real
Editor, Junior Mining Monthly and Junior Mining Trader.

For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Outsider Club, Junior Mining Monthly, and Junior Mining Trader. For more about Gerardo, check out his editor page.

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