America has a new President, and most are expecting improvements across the board, but we can say with authority that the US dollar is destined for destruction. This situation is baked into the cake, the destiny of debt-based currencies and the driving force behind the frenzy to embrace cryptocurrencies. Already today, the new Trump administration’s first crypto move: SEC launches’ crypto task force’ to set clear industry regulations. United States debt has reached the critical stage wherein the dollar can no longer be saved. Consistent with forcing people into a Central Bank Digital Currency, this rush to cryptocurrencies is a notice that digital currency will be the new US “dollar.” All that glitters is not gold, but for those who want wealth preservation, gold and silver still shine.
We note however it is possible to multiply you current wealth by investing in cryptos and grow wealth with the rising tide – but in the end this new “paper currency” will return to its intrinsic value. In the case of digital currencies this intrinsic value is unrecoverable heat.
The state of the economy provokes profound concern among astute observers in an epoch of frenzied market activity and eroding fiscal fundamentals. The patterns we see unfolding in the financial markets indicate a system reaching its fatigue point when traditional monetary levers are losing their efficacy under the strain of an overwhelming debt burden. Such conditions call for a reassessment of how we safeguard our wealth in potentially volatile times.
The financial ecosystem’s barometers—indicators of fiscal health or malaise—are signaling a need for cautious navigation. Of particular note is the US 10-year Bond Yield, which now stands at 4.574%, a slight reduction from the previously noted 4.603% but still high enough to suggest a market vexed by the specter of inflation and dubious of the government’s debt management strategies. The bond market interest rate gyrations are a signal of an unstable situation. Keeping these rates requires massive devaluation of the dollar – which is unsustainable.
The Federal Reserve’s increases in asset purchases to stifle rising interest rates have been an exercise in temporary respite, akin to placing a bandage on an arterial wound. That rates continue to climb despite these interventions, which suggests that we may be at the climax of a debt currency’s life cycle. The rising velocity of money in circulation, which should stimulate economic activity, paradoxically feeds into the furnace of inflation, chipping away at the purchasing power of our incomes and savings.
Presently, our precious metals markets report gold commanding a premium at $2741.685 per ounce and silver at a respectable $30.776 per ounce. The gold-to-silver ratio (G/S) stands at an astounding 89.09, indicating that silver—often heralded as the ‘poor man’s gold’—retains its investment luster, especially when historical averages suggest it may be undervalued compared to its illustrious peer.
Let’s contextualize these figures by reflecting on the previous article. Gold was marginally lower at $2709.98, an increase testifying the metal’s enduring appeal during uncertain economic climates. Silver trailed at $30.49, now ascending subtly, mirroring investor confidence in its potential.
As we scrutinize the commodities landscape, platinum, and palladium exhibit resilience amidst fluctuating market forces, trading at $945.9 and $970.439, respectively—metrics that speak volumes about investor sentiment toward physical assets over volatile and inflation-susceptible alternatives.
Bitcoin, alternatively, sits at a staggering $106,908, a clear statement of an evolving market appetite for digital assets, although volatility is an inherent factor to consider. Meanwhile, commodities like crude oil ($75.99), copper ($4.336), and propane ($0.57) reflect the interplay of supply dynamics, geopolitical uncertainties, and the insatiable global demand for energy and industrial metals.
The indicators above comprise a narrative that compels us to question the prudence of reliance on a debt-laden monetary system. Indeed, the political machinery that animates our economic policy decisions has consistently exhibited a propensity to manipulate markets, distorting outcomes that free-market mechanisms would otherwise dictate. Such maneuvers significantly impair economic efficiency, distorting fundamental principles of supply and demand and promoting instability across asset classes.
At the core of our analysis, amidst this surge of indicators and alarms, is a loud call for asset-backed currency—a call that harmonizes with the views of Austrian Economics, which champions competitive currencies and fiscal restraint.
Our monetary metals market, responsive to the mosaic of economic signals, reflects a burgeoning demand for gold and silver, both locally and globally. The heightened premiums on these metals signal a collective drive for assets that provide sanctuary against inflation and the financial erosion it brings. We should see this as signal to invest in physical gold and silver, including pre-1965 coins, which historically have served as reliable bulwarks to preserve wealth during times of monetary devaluation
Moreover, given the precarious state of the US debt market, marked by a liquidity crisis and the looming collapse in dollar purchasing power, a survivalist mindset prevails. It behooves us to prepare for a post-collapse environment, contemplating strategies that foster self-reliance and ensure financial sustainability.
In such a milieu, political commentary is inextricable from our economic discourse; the prevailing trend suggests Western economies are far removed from the tenets of a free market and are enmeshed in government interventions that sway far beyond judicious regulatory oversight.
The current trajectory, far from auspicious, suggests that individuals must pivot towards secure, tangible assets that can withstand economic upheavals. Gold and silver remain the quintessential haven assets, steadfast against the tides of devaluation and market turbulence.
In conclusion, this confluence of market pressures and political-economic machinations makes the case for exiting the debt-based paper currency system an argument grounded in prudence and prescience. As we find ourselves potentially on the cusp of the US dollar’s denouement, the path forward is illuminated by the immutable value locked within gold and silver—a path that hedges against uncertainty and advocates for enduring wealth in an era defined by its precariousness
Let this be the counsel for navigating the tremulous economic waters ahead: Embrace the sanctuary offered by precious metals, and secure a financial bastion impervious to the caprices of market manipulations and currency devaluations. The protection of one’s wealth and the assurance of one’s financial independence lie not in ephemeral paper promises but in the solid reality of physical gold and silver—a truth as old as commerce.
Be not deceived – be prepared ~ Silver Savior
WhySilverNow.com (why is silver the most undervalued financial asset in the world)
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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.