In the grand theater of global economics, where the illusion of paper wealth has begun to dissolve, a sharp observer might discern the underlying fractures spreading across the financial landscape. Cast against a sky heavy with debts and deficits, the indicators of our economic health flicker with uncertainty.
The relentless expansion of the US debt market, where service requires increasing borrowing, signals the strain on the system. It’s not fear-mongering but a deduction drawn from a careful confluence of market trends, monetary policies, and close monitoring of the physical silver and gold markets.
Despite assurances from the monetary authorities, today, we witness the precarious rise of interest rates, with the US 10-year Bond Yield at 4.225%, attempting to break free from the artificial caps imposed by the Federal Reserve’sReserve’s recent outrush of asset purchases. Rates such as these, teetering on the brink of uncontainability, echo the groans of a currency straining under its burdensome lot.
The dollar’s persistent weakness is starkly contrasted when examining the precious metals market. Gold glitters at $3309.71 per ounce, and silver, the ever-compelling workhorse of commerce and investment, has escalated to $33.167 an ounce. One cannot overlook the gold-to-silver ratio (G/S), now poised at 99.79, as both a glimpse into silver’s relative undervaluation and a beacon for prudent allocation.
The current gold-to-silver ratio indicates silver price manipulation. Silver is still around 66% of its all-time high of just $50 in 1980. The silver price stands in egregious contrast to the fact that the US has accumulated over $37 trillion in short-term debt, and mountains of dollars have been created out of thin air since 1980. Precious metals naturally track fiat currencies higher as governments rob citizens via rampant debt escalation.
In this case, the price of silver has fallen over the years since 1980 due to the manipulation of the price of paper silver. The financial system has created silver derivative products that are sold as silver, such as the SLV exchange fund. More than 300 ounces of paper silver are believed to exist for every real ounce in circulation. Paper silver can be created out of thin air about as easily as currency; therefore, the price of silver can be artificially low. The bottom line is that when the paper markets collapse, those holding silver will see an explosion in the dollar prices of silver.
The normal exchange rate between gold and silver is typically around 16-40, and therefore, buying silver now instead of gold will result in significant gains relative to gold, as silver will buy more gold in the future when the G/S ratio normalizes. I have recently converted some of my gold into silver to benefit from this unnatural condition.
Meanwhile, alternative assets maintain their prominence in investors’ minds, with Bitcoin ascending to $94,824, a testament to the diversified search for hedges against the crumbling purchasing power of fiat currencies.
As the velocity of money accelerates unexpectedly, inflating alongside the Federal Reserve’s Money Supply figures, we face inflationary gales that threaten to erode our savings and earnings. In such an environment, commodities markets pivot the spotlight to the physical tangibility of assets: crude oil holds at $61.03 per barrel, copper costs $4.884 per pound, and even propane, often unnoticed, registers at $0.57—each price a thread in the tapestry of accelerating expenditure.
The precious metals market does not waver in its commitment to reality-based valuations. Gold, having settled marginally lower from its previous peak to its current price, and silver, progressing steadily towards the projected $50 by year-end, reflect the metals’ unwavering stature as wealth-preservation vehicles. In this context, pre-1965 coins emerge as silent testimonials of a time when currency bore tangible value—a symbol of the potency of asset-backed worth.
The systemic manipulation witnessed within our economies—distant from free-market principles—leads to a distortion of outcomes; market inefficiencies become not just a byproduct but a defining trait. Manifested through policies distanced from economic reality, these forces occasioned an Opus of financial instability, reverberating through housing, employment, and automotive sectors.
In light of such distortion, precious metals—silver and gold—propose an antithesis: clarity amid the opaqueness of market manipulation and steadiness in the face of engineered outcomes. They are the instruments of choice for those cast wary by the specter of deliberate economic sabotage that aims to deplete our financial structure’s robustness. Make no mistake, the central banks are deliberately destroying the financial system, and with that, will be the collapse of the American middle class. After the collapse, we must prepare to create a new, honest financial system without central banking. Staying solvent during the collapse is only possible if we offload dollar holdings into wealth-preserving assets.
The continued advocacy for physical possession of these assets strengthens in the face of the current trajectory. The wisdom of acquiring and safeguarding gold and silver, including the oft-overlooked “junk” coins, holds firm. They represent a bulwark against economic malaise, a tangible claim in a world where paper currencies are subject to the hazards of governments’ proclivities for deficit spending and unfettered monetary expansion.
The political backdrop to our economic saga is one characterized by regulatory miscalculations, trade tensions, and, at times, outright fiscal profligacy—factors that inexorably lead to inefficiencies and erode market resilience. My political appraisal, albeit disheartening to some degree, clearly calls for the necessity of free market liberties—a remembrance of the principles that should underpin vibrant economies.
So here we stand, at the precipice of potential upheaval, where the keen observer takes heed of the tremors beneath the market’s surface. It is not a time for undue alarm but a period for strategic recalibration.
I draw these reflections not to engender despair but to fortify resolve: to prime oneself for the forthcoming tribulations with the enduring luster of silver and gold. The call reverberates—for a realignment of holdings, for a transition from the intangible to the concrete, for the shelter that only physical assets of proven worth can offer.
I advocate individual liberty, a world where people can live lives to their own ends, not as tools of others. Let us fortify our portfolios so that we cannot merely survive but thrive in the inevitable fiscal metamorphosis to come. I kindly recommend you make your plans now – very little time remains.
Be not deceived – be prepared ~ Silver Savior
WhySilverNow.com (why is silver the most undervalued financial asset in the world)
Get Your Free Gold Wealth Kit Here
- 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.