Greetings on this Election Day, 2024. As I look over the markets this morning, we can see that optimistic euphoria has a grip on reality. The market indicators are all rising, including the omen of future collapse—the 10-year yield—rising with the rest, hoping not to be noticed. It must be apparent to those who can see that the euphoria will be short-lived.
Once a robust flagship of innovation and growth, our economy appears to have veered into the treacherous waters of unsustainability. The U.S. debt market, a significant indicator of this, has expanded at an alarming rate—a signal, I fear, that we may be in the final throes of a dollar-based debt currency life cycle. Let me guide you through the factors contributing to this economic storm and offer practical survival strategies.
As an observer who has spent over thirty years watching the precious metals market, I have come to understand how these assets respond to financial distress. Presently, with gold trading at $2744.72 an ounce and silver at $32.733, we see their historical role as safe havens solidified once more. The high prices reflect hedging against uncertainties and the preservation of wealth amidst a potential devaluation of paper currencies.
The latest market fluctuations have been particularly insightful. The Federal Reserve’s attempt to combat rising interest rates by increasing asset purchases appeared initially to be effective; however, lower rates were fleeting, with the 10-year Bond Yield climbing back up to 4.305%. This bond yield, now higher than we’ve seen in recent memory, is a harbinger of surging borrowing costs, indicative of an economy inching towards a breakdown.
This is further evidenced by the gold-to-silver ratio (g/s), which, at 83.85, underlines the disproportionate increase in the price of gold relative to silver. Historically, a high ratio suggests that gold is overvalued, silver is undervalued, or both. It is a metric that savvy investors watch to determine the opportune time to exchange gold for silver or vice versa.
Let’s consider the velocity of money—an indicator of how quickly money circulates in the economy. It has been rising since 2020. As it rises, it’s often indicative of inflation, because the faster money moves, the less purchasing power it possesses. This motion is likely a response to inflationary pressures, as consumer prices soar, diminishing the value of the dollar ever faster.
Moreover, the panorama includes other essential commodities, all linked intricately to our financial well-being. Platinum and palladium, trading at $993.58 and $1081.18, respectively, offer a glimpse into the advanced manufacturing and automotive industries amid global economic challenges. Copper, at $4.4055, traditionally a bellwether for the worldwide economy, shows continued industrial demand but is also sensitive to economic downturns.
In this uncertain landscape, Bitcoin’s impressive price of $68846.51 is a testament to the increasing appetite for non-traditional assets. This crypto-asset’s performance suggests a persistent search for alternatives to traditional banking and financial systems.
It is impossible to chart this course without acknowledging the erratic tides of political influence. Government interventions have long distorted free-market outcomes, creating a mirage of stability. Assets such as precious metals break free from these manipulations, accurately reflecting market realities.
In preparation for the storm ahead, consider diversifying into solid assets like precious metals. The current prices of gold, silver, platinum, palladium, and even industrial metals like copper give us a guide for valuation beyond mere fiat currency.
Careful navigation is essential for survival. Stock up on non-perishable foods, potable water, and basic supplies to weather potential disruptions that a liquidity crisis could trigger. Strengthen community ties; a collective approach to hardship often yields innovative solutions.
The collapse of the dollar’s purchase power is not a question of “if” but “when.” Evidence abounds, from the U.S. government’s concerning debt service requirements to the looming inflation rates and the alarming speed at which our currency changes hands.
For those wondering how to preserve hard-earned wealth, my counsel is this: Consider gold and silver, the timeless sentinels of value. Pre-1964 coins, often referred to as “junk silver” due to their high silver content, are also a practical choice for manageable and divisible trade means.
In the face of an economic downturn, we often see a deliberate destruction of wealth and value. The political elite, entangled in their hegemonic pursuits, rarely considers the average citizen. Our only true power is the ability to inform ourselves, prepare judiciously, and act with conviction.
Hence, as we brave this ebbing tide of the dollar, we must anchor ourselves with tangible assets. Gold and silver, alongside other precious metals, offer us a lifeline, a chance to ride out the tempest and emerge with our wealth not just intact but potentially thriving. Now is the time to be vigilant, prepared, and act—to ensure that when the tempest subsides, we remain afloat, if not sailing towards new horizons.
Election Note:
The election is likely going to be a game-changer. The election is a doorway to the next American experience. Will the nation resolve its growing problems with lawlessness, corruption, and disregard for the Constitution and the American way of life? Or will some cherished privileges and values be restored, and America begins to heal toward its previous operational status?
Should we expect something altogether new—the next world of changes, shocks, and revolutionary style rebuilding into our controller’s total control and complete domination dystopian dream? This remains to be seen, but we can expect significant changes no matter how it works.
The financial system and economic control apparatus are experiencing a tug-of-war. If Trump wins, we can expect more easy money, ever-increasing stock prices (but with fake stock valuations), rising crypto prices, and the dollar’s collapse in purchasing power. This will continue until the debt market can no longer be supported—from life support to cardiac arrest. During this period, gold and silver will hang in there, waiting for their big scene further down the road—gold and silver are always a winning choice.
If the Democrats claim victory, we can expect the stock market to fall immediately while gold and silver climb in value. Depending on the debt-creators’ ability to manage the fall, we will have just hastened the predictions mentioned above—more money creation, more media misinformation regarding the economy’s condition, and, in the end, the same results.
Unless the election brings a significant change in the kind of economy and nature of the currency, the future forecast post election is the same for either winner – we are all losers.
Stay Safe.
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.
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