Silver and Gold

Silver and Gold

Everyone wishes for Silver and Gold

How do you measure its worth?

Just by the pleasure it gives here on Earth – Johnny Marks, Burl Ives

I would like to start this article by wishing you a happy Thanksgiving, filled with family, delicious food, and joyful anticipation for the upcoming Christmas season. Now, let’s turn our attention to the markets! Thanksgiving marks the official begweinning of the Christmas season. It’s a time when many Americans are preparing for the holidays, gathering supplies for family gatherings, and looking forward to food, gifts, and seasonal cheer. This year, it’s important to consider the implications of holding cash as a store of wealth compared to investing in silver, gold, and other tangible assets. These alternatives may be more resilient in the face of currency devaluation and the potential loss of purchasing power due to increased As I survey the recent oscillations in silver and gold markets, a semblance of stability might deceive the casual observer. However, for those of us with a deeper understanding of the financial seas, we navigate—grounded in Austrian economics and free-market tenets—these fluctuations bespeak deeper undercurrents threatening to upend the fragile vessel of our economic stability.

Precious metals like silver, poised at an equilibrium that underestimates its potential, await the triggering spark of market recognition—a push towards its intrinsic and previously suppressed value as an industrial comrade to Gold’s safe-haven allure. Meanwhile, Gold appears to be evaluating the economic landscape cautiously, its price movements demonstrating a vigilance that some market participants might do well to emulate. We must assume (as should you) that these prices are just manipulated theatre in this economy of lies. However, we can feel better that these manipulated prices work in our favor: A buyer’s market exists in alternative currencies!

Where the misalignment between the Morningstar and S&P 500 indices and underlying economic realities becomes apparent, Gold—and, to a lesser extent, silver—reflects a somber sensibility. The Federal Reserve’s monetary policies, particularly the flirtation with persistently low interest rates, despite the veneer of inflation shaping policy outlooks, fail to address the root cause of inflation and market dislocation that Austrian scholars recognize: the unabated expansion of debt-based fiat currency: An economic time bomb now at its wick’s end.

As for the energy sector, contentious at best, exacerbated by escalating Ukraine and Israeli tensions, one cannot help but consider how supply-side risks interplay with the broader themes of economic sovereignty and energy independence. Resilience in energy markets may demand a return to fundamental strategies prioritizing efficiency and market-driven solutions over politically charged interventions.

In the short term, we might anticipate precious metals’ meandering valuations, hindered by deliberate policy-induced lethargy that stifles true price discovery. However, long-term trends suggest that as investors awaken to the implications of incessant currency debasement, metals will likely surge—a prescient harbinger of the broader expectation for commodities. In other words, load up now, selling your dollars for wealth-preserving assets like Silver and Gold.

Remember the real “elephant in the room”: the staggering debt levels threatening to collapse the Western financial foundation. While markets teem with activity, the silent screaming of the debt mountain looms, unassailable and largely unaddressed. Ignoring this menace in favor of short-term cyclical interpretations constitutes a grave error, as the longer we defer fiscal sobriety, the more painful the inevitable reckoning will be.

Looking beyond the immediate horizon, we must consider the health of market segments in the context of their libertarian lifelines. The emergence of competitive currencies, strongly advocated within my circles, promises a course correction from the fiat currency quagmire we find ourselves mired in. Gold and silver’s role in such a framework would likely be significant—as stabilizers and as barometers of the economics of trust.

If mitigating actions remain untaken, our predictions for the general direction of markets will be bleak. Commodity prices will encounter corrections as the once-suppressed truths of economic fundamentals surge. Precariously perched atop artificial liquidity stilts, equity markets will soon give way to gravity’s immutable law. The bond markets, swathed in sovereign and corporate overleverage, will need to navigate rises in yield and credit risk, portending higher capital costs and potential defaults. Expect a 2025 liquidity crisis — perhaps like none ever experienced in the USA.

To forestall such dire outcomes, we advocate for the adoption of Austrian precepts, reducing inflation through a systematic paring down of public and private debts, allowing interest rates to rediscover their natural equilibrium, and fostering economic growth through savings and investment in productive endeavors, not speculative froth. We must return to reason and base value on production and merit—a central pillar for the economy’s revitalization.

In closing, this period awaits a catalytic paradigm shift—an embrace of competitive currencies, a resolute stand against debt accumulation, and a steadfast commitment to genuine free-market principles. Only then can we claim victory over the storms of economic instability and steer towards the prosperous shores deserved by those brave enough to navigate through uncharted yet principled waters.

We are once again witnessing the repetition of similar events from the past in our current present. We are deep inside a roaring twenties much like the latter part of the 1920s, where reason and prudence were overwhelmed with bubble-based exuberance and leveraged pipe dreams, setting the stage for an unavoidable collapse. Enjoy your holidays, and consider buying friends and family some silver as a gift for this season—something that will continue to give next year and beyond.

*Disclaimer: The insights provided herein apply my understanding of Austrian Economic principles and are meant for those seeking to comprehend financial landscapes through a lens critical of centralized interventions and fiat currency systems. I feel strongly about teaching and proselytizing the merits of free market economics as it is a means to breaking the chains of financial slavery*

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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.