The state of the U.S. economy continues to raise alarms among those who keep a vigilant watch over its numerous indicators. Mired in extreme debt and facing a potential loss of confidence in the dollar, the warning signs are undeniable. Within this precarious landscape, precious metals like gold and silver appear increasingly like vital lifeboats for preserving wealth.
Let us consider the facts. Our nation’s debt has soared to astronomical levels, with projections pointing to it eclipsing $56 trillion in the next decade. Servicing this debt requires issuing more debt, a vicious cycle that has placed immense pressure on the economy.
The U.S. 10-year Bond Yield, a hallmark of economic sentiment, is currently at a concerning 4.257 percent, a strong indicator of investor apprehension and the rising cost of debt. The careful observer will see the battle being waged at the front lines of the debt markets—yields rising only to be taken down by some unnamed but with nearly infinite resource buyers. While the yields are temporarily managed, they come at the cost of ever-rising inflation.
Massive increases in bond yields are part of the near-term future; use that information as your cue to move out of the financial system.
What does a high bond yield signify? Essentially, it’s the alarm bell of increased risk and a signal that investors demand greater returns for the perceived dangers of lending to the government. This strains the federal budget, as each uptick in yield translates to higher interest payouts on debt, which can crowd out other areas of spending or, more likely, lead to additional borrowing.
Now, onto precious metals. Gold, the timeless asset, stands at $2,321.45—an expression of investor concern for the stability of currencies and financial systems. Often seen as an industrial and monetary metal, silver trades are still confined to a tight band of around $30.
Similarly, other precious metals such as platinum and palladium stand at $990.09 and $911.52 respectively.
The case for these tangible assets grows stronger in the shadow of our crumbling fiat currency, with silver emerging as a multi-faceted investment due to its usage in industrial applications, such as the burgeoning solar energy sector.
It is clear that the dollar’s purchasing power is in jeopardy. The velocity of money—a measure of how quickly money is exchanged in an economy—continues to rise. This acceleration typically signals increased economic activity, but paired with a decreasing money supply, as we’re observing now, it can exacerbate inflation, diminishing the value of cash savings.
Cryptocurrencies have recently been under pressure, with prices tracking Bitcoin going down. However, Bitcoin, now trading under $62k, is seeing a rise in trade volume, signaling a bounce is likely on the way. While cryptos provide attractive diversification prospects, their volatility and regulatory uncertainty render them less than ideal as primary wealth preservation assets.
Moreover, the markets we participate in are not free from manipulation. Regulatory decisions, central bank interventions, and fiscal policies all contribute to distorted outcomes that diverge from what pure supply and demand dynamics would produce. Recognizing these manipulations is critical, as is understanding that present market valuations may not fully reflect underlying economic realities.
The commodities market also serves as a canary in the economic coal mine, with oil trading at $80.59 per barrel and copper at $4.4295—both commodities are essential economic health barometers. An increase in commodity prices often precedes inflation, nudging investors towards the relative safety of gold and silver.
We must take proactive measures as we face the dizzying prospect of a liquidity crisis sparked by a debt market collapse, which could lead to dramatic declines in dollar purchasing power. Acquiring physical gold and silver, and even pre-1964 ‘junk’ silver coins, can hedge against this inflationary potential, securing a portion of one’s wealth in assets that hold intrinsic value.
Given these economic realities, I urge readers to evaluate their exposure to traditional banking and financial systems. Diversifying into tangible assets and considering strategies outside the fiat currency model are prudent. The acquisition of gold and silver preserves wealth and provides peace of mind in these uncertain times.
As we grapple with these issues, preparing for life beyond potential financial upheaval is essential. This means considering self-reliance in the form of growing your own food, strengthening community ties, and acquiring skills that will be valuable regardless of the economic climate.
Stepping back, it becomes clear that the trends we observe are symptomatic of a larger issue—our departure from sound fiscal discipline and our reliance on debt-fueled growth. It’s a reminder that a nation’s true wealth is not in its currency but in the productivity and creativity of its people. A return to principles that value hard work, innovation, and sound money is foundational to emerging from this economic dilemma with a more stable and prosperous future.
In conclusion, as we witness the disquieting signs of an economic downturn, we must take proactive, informed steps to safeguard our assets. Turn to gold, silver, and other precious metals not as a speculative venture but as insurance against the vulnerability of a debt-laden economic system. And let us not forget the importance of fostering resilience and self-sufficiency—qualities that will serve us well regardless of the future.
Be not deceived – be prepared ~ Silver Savior
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* Note: We are not giving advice; we only give our opinion; we are not financial advisors. This article only represents our thoughts about the economy.