On January 24, 1848 in Coloma California, James W. Marshall founded the California Gold Rush. When he found the first kilogram of gold in the United States History at Stutters Mill, he had created a historical movement that will forever be remembered.
The California Gold Rush was a time where people had found a moment of great opportunity where it was previously not suspected to be.
During the time there were over 300,000 people who came to excavate the land in search of more gold, they were called the "Forty Niners" (San Francisco 49ers).
What Does Gold Have To Do With Disease?
There is a correlation between the two, exponential profit growth. That's correct, the same type of who people were hopping on the bandwagon and seeking opportunities from gold in 1984 are the same kind of people seeking to exploit the opportunities presented during a global pandemic.
Supply and Demand play a principle role in gold and can easily be tracked throughout history using analytical tools and software we call charts and trading platforms or terminals. The Law of Supply and Demand states that at higher prices, buyers will demand less of an economic good, and at higher prices, sellers will supply more of an economic good. These two laws interact to determine the actual market prices and volume of goods that are traded on a market.
Now lets look at gold and its relation to the Law of Supply and Demand. Gold is a physical object, it is tangible property. What allots its demand value is its lack of supply. We don't know how much gold there is on this planet, but we do know that it is extremely difficult to mine.
It's time to compare disease in relation to the Law of Supply and Demand.
There is a global pandemic. Borders are closed. Cities and provinces across the globe are on lock-down. People are dying. Families/spouses/friends are separated. Businesses are closed and shutting down. Giants are crumbling and smaller opportunist are rising out of the midst of it all.
With a shortage of medical supplies and the monopoly created around the limited supply of vaccines that are still awaiting approval, along with the numerous new ways that we live our daily lives via transportation and global trade, only a matter of time will tell what opportunities this year may create.
Both Gold and Covid-19 were discovered, one in a lab and the other in a mine. The two are physical objects with tangible properties. People find opportunities to profit from the lack of resources and solutions.
You create a problem and then charge for a cure or solution.
You make the solution, which could also be tangible and real but may also just be an idea.
Put some regulations and restrictions behind the product for sale and a market surrounding it.
You now have a product with Intrinsic Value.
You use intrinsic value to create the price of any tradable instrument (stocks, currencies, futures, options, bonds, cryptocurrency, etc.).
I will not get too into Covid-19 and the potential multi-trillion dollar market surrounding it, nor will I get too into gold and the historically parallel ebb and flow movements in comparison to a history of greed and fear over global epidemics throughout mankind.
I just wanted to implant an idea into your mind and allow your actions powered by your open-mindedness and willingness to dig deeper, flow into its own pursuit to create your own opinions and bias that'll influence your future research.
I will be writing future blogs on the topic as this global pandemic continues to evolve.
Stay informed and keep an eye on the markets as one day soon the economies will recover and new fields in science/medication/pharmaceuticals/religion/government emerge.
I had took a break from trading full time in mid March after the first move of the pandemic hit and signaled my system to pause further trading related activities. I do believe that between the time I am typing this blog post (July 5th, 2020) and the last 2 quarters of this year that the global economy will see an improvement and most smaller countries especially third world countries, will have a surge in GDP. Feel free to share in the comments section below what your thoughts on the current global events and the future of our history.
"Life, and it's like, you know, you can look a gift horse in the face and not know what you lookin' at
And I feel like, you know, I'm lookin' at the gift horse
I'm just one of the ones that notice what I'm lookin' at
You know what I mean? It's actually an incredible time
It's like a gold rush, it's never been a time like this in our generation
It's our equivalent of the Gold Rush with everybody movin' to California
This technology has empowered everybody
And it's giving people, you know, it's as big as you wanna make it and, you know, it's as far as you take it
And we can quote a gang of things going on in the world right now
Or just, you know, accept it as being true
But, you know, it's like, man, giants gon' crumble
Big-big companies gon' crumble
New companies gon' pop up outta nowhere and it's-it's gon' be dramatic
And I believe that" - Nipsey Hussle
I have been trading the financial markets for the past decade and have failed to the point where there were no other ways to fail. I trade for myself with my own financial resources and enjoy the freedom of being my own boss managing my independent business built from the ground up. Feel free to message me anytime with questions.