Debt, Devaluation, and the Decisive Role of Precious Metals And Productive Assets | Silver Savior
The fabric of the American economy is frayed by the relentless over-extension of credit and the ballooning national debt. In recent years, we’ve witnessed the inflationary impacts of monetary policy and its erosive effects on the dollar’s purchasing power. The gold market, one financial barometer of economic health, subtly chronicles this tale of affliction and opportunity.
It is very important to keep in mind what caused this ‘financial collapse’. Central banking is the bane of civilization and funds all things evil with wealth stolen through the process of fractional banking and monetary manipulation. We, the people, are forced to use a financial system that is rigged to steal and designed to collapse, taking your wealth down at the same time. Inflation is a known destroyer, a hobbler counted on to sap wealth, restrain growth, repress the productive and transfer wealth from many to the few. I urge everyone to look at how the monetary system would be if our products, goods, and services were priced in gold and silver rather than fictitious dollars. See here , for just one example, how food prices have steadily fallen since the 1960s when priced in gold.
Liberty cannot prevail under the noose of a privately controlled monetary system. Remember it’s their ‘money’ and therefore their world!
Gold recently reached an all-time zenith, with futures contracts cresting at $2,687.30 per ounce. Gold prices are not merely a metric of investor sentiment but a harsh critique of our nation’s unsustainable monetary growth.
Elsewhere, silver indicates robust demand with its impressive leap to $31.1575 per ounce. These are not temporary spikes but the manifestation of profound economic anxiety—a signal flaring red across the dashboard of our financial system.
These precious metals, often considered safe-haven assets, shine exceptionally bright as the 10-year US bond yield lingers at 3.787%, reflecting a nervousness to commit to long-term debt instruments. As I type, the US Crude Oil price hovers at $68.29, signaling the unstable nature of energy markets—a crucial vein in the economy’s lifeline.
Copper’s price at $4.5505, called Dr. Copper for its ability to diagnose economic trends, is currently up by over 35%—a clear indicator of expected future demand, particularly in the renewable energy and tech sectors. Although a good sign for some industries, it should give average investors pause to consider the volatile nature of markets heavily influenced by speculative investments and policy decisions.
The alarm bells should sound louder, observing the Federal Reserve Money Supply indicator is again rising while velocity of money ratio, signals a growing velocity of money exchange in the economy, which also translates to higher inflation rates. Both rising money supply and velocity are a sign of a fully powered hyperinflation in progress. Historically, the increasing speed at which money circulates tends to precede or coincide with periods of inflation, eating away at the dollar’s purchasing power.
This brings us to the gold-to-silver ratio (g/s), which stands high at 84.55. This indicates that silver is undervalued and could offer unique investment opportunity for those looking to hedge against inflation. Indeed, tangible assets like precious metals have become increasingly critical to have and to hold as they historically hold intrinsic value far better than paper-based assets in times of economic crisis.
The cryptocurrency market, with Bitcoin valued at a staggering $63,900 USD, is yet another sign of the market’s quest for assets outside of the government and central bank influence—a reflection of underlying distrust in traditional financial systems and the search for alternatives with fixed supply mechanics.
It would be remiss to overlook the political influences that pervade our economic landscape. We operate under the guise of free markets; however, reality speaks to a different tune—centralized control and manipulation play significant roles in distorting true market outcomes. The current climate, studded with trade negotiations, central bank interventions, and political disputes, all contribute to our markets’ erratic volatility and uncertainty.
Realizing the trajectory at which the US debt is escalating, the mechanism in place is unsustainable. A shift towards more tangible assets such as silver, gold, and other precious metals is prudent. Unlike fiat currency, these assets cannot be whimsically shrunk into oblivion and, therefore, serve as a bulwark against the depreciation of hard-earned wealth.
Beyond diversifying into precious metals, individuals would be astute to consider other forms of wealth preservation, such as storable foods, water filtration systems, and other necessities that would retain value and utility in a potential economic downturn scenario.
In weaving these threads together, the tableau of our economy prompts us toward prudence and preparation. Gold at $2,634.39 per ounce and silver at $31.1575 per ounce, with steady gains year over year, stand as testaments to the burgeoning interest in these natural hedges against financial instability.
As a seasoned commentator with over three decades of market observation, my weekly discourses aim to demystify the intricate linkages between commodities, the automotive and housing sectors, job markets, and the broader economy. The patterns are clear, and the message is unmistakable: secure your financial future with assets that withstand the vagaries of indebted currencies and political manipulations.
It is with a heavy heart yet firm conviction that I urge readers to consider their financial future beyond the crumpling deck of paper assets. Invest in the enduring value of precious metals and necessary survival goods. Solid assets, not continuously devalued paper, might be where we might find sanctuary in the storm that steadily approaches. Take time now to learn about productive assets and currency alternatives. The US dollar is being destroyed, heads in the sand notwithstanding, it is time to take decisive action.
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.
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