11 Threats That Could Spook Investors and Push Gold Higher

Fear lies at the heart of nearly every big move in gold (NYSE:GLD). Luckily for gold bugs, there’s plenty to be afraid of in 2011.

Hinde Capital’s Ben Davies says central banks are driving equity markets, leading to a global ponzi scheme. In this context, gold is “extremely undervalued.”

“What specifically keeps us awake at night? Too be honest all the issues we discussed last year and more,” he says in a new 45-page report (via King World News).

DELEVERAGING: “Growth will not be sufficient in the developed world to address debt problems… relationary tactics will continue… this will lead to implicit and explicit defaults”

Get Your Market Outlook 2011 – by Jordan Roy-Byrne, CMT >>

DELEVERAGING: "Growth will not be sufficient in the developed world to address debt problems... relationary tactics will continue... this will lead to implicit and explicit defaults"

Source: Hinde Capital via King World News

FOOD CRISIS: “In many countries food inflation may… lead to suppy disruptions and social unrest”

FOOD CRISIS: "In many countries food inflation may... lead to suppy disruptions and social unrest"

Source: Hinde Capital via King World News

EMERGING MARKET INFLATION: “Will China’s tightening antics… cause a debt deflation crisis?”

EMERGING MARKET INFLATION: "Will China's tightening antics... cause a debt deflation crisis?"

Source: Hinde Capital via King World News

EQUITIES WEIMARIZATION: “World central banks are targeting real assets… there will be volatility to come, primarily to the downside”

EQUITIES WEIMARIZATION: "World central banks are targeting real assets... there will be volatility to come, primarily to the downside"

Source: Hinde Capital via King World News

IRELAND: “Mess is far from over… election could spark a revolt and request to not undertake the onerous terms laid out by the bailout package”

IRELAND: "Mess is far from over... election could spark a revolt and request to not undertake the onerous terms laid out by the bailout package"

Image: James Jordan on flickr

Source: Hinde Capital via King World News

SWISS FRANC COLLAPSE: “Distrusting of the Swiss National Balance sheet.. social dynamics have changed with regard to the CHF maintaining a safe haven legacy” (Even the Swiss are turning to gold)

SWISS FRANC COLLAPSE: "Distrusting of the Swiss National Balance sheet.. social dynamics have changed with regard to the CHF maintaining a safe haven legacy" (Even the Swiss are turning to gold)

Source: Hinde Capital via King World News

FORECLOSURE CRISIS: “Over 10 million houses now have negative equity… defaults will continue to rise… $1.5 trillion worth of potential losses”

FORECLOSURE CRISIS: "Over 10 million houses now have negative equity... defaults will continue to rise... $1.5 trillion worth of potential losses"

Image: AP

Source: Hinde Capital via King World News

THE MUNI MONSTER CRUNCH: “Municipalities have borrowed only $620 million in the first week of the year down from the $7.4 billion at the start of 2010. That is a precipitous fall of over 90% at a time we know State coffers are empty.”

THE MUNI MONSTER CRUNCH: "Municipalities have borrowed only $620 million in the first week of the year down from the $7.4 billion at the start of 2010. That is a precipitous fall of over 90% at a time we know State coffers are empty."

Central California’s Women’s Facility in Chowchilla

Image: wikimedia commons

Source: Hinde Capital via King World News

THE DEBT CEILING GOES UP AGAIN: “Despite Europe ailing it so far has pursued a cutting of budgets whilst the USA seems hell bent the other way”

THE DEBT CEILING GOES UP AGAIN: "Despite Europe ailing it so far has pursued a cutting of budgets whilst the USA seems hell bent the other way"

Image: Ani Carrington via Flickr

Source: Hinde Capital via King World News

JAPAN: “Government debt-to-GDP is now over 253%… if Japan were forced to go to foreign creditors… this would imply a drastic increase in yields… and an ultra-loose monetary policy”

JAPAN: "Government debt-to-GDP is now over 253%... if Japan were forced to go to foreign creditors... this would imply a drastic increase in yields... and an ultra-loose monetary policy"

Source: Hinde Capital via King World News

BRITISH INFLATION: “Combination of loose monetary policy and tight fiscal policy will likely be beneficial for equity markets, but negative for the currency… another form of Zimbawification”

BRITISH INFLATION: "Combination of loose monetary policy and tight fiscal policy will likely be beneficial for equity markets, but negative for the currency... another form of Zimbawification"

Source: Hinde Capital via King World News