As the United States stumbles down the precarious path of untenable debt levels and fiscal uncertainty, individuals who seek to protect their financial future must take a closer and more serious look at the economy’s underlying fundamentals. My 30-year journey scrutinizing financial markets, especially in the realm of precious metals, leaves me with the persistent opinion that we are on the brink of significant economic upheaval. I must underscore the critical nature of tangible assets like gold and silver for wealth preservation even louder than in my previous findings.
We must first recognize that the U.S. debt market has reached a daunting scale, with national debt soaring to heights that will soon make servicing this impossible. The current ten-year bond yield, hovering infectiously at 4.185%, signals investors’ trepidation about America’s ability to handle its spiraling obligations, increasing borrowing costs and potentially choking off economic vitality.
In my latest evaluation of monetary metals, I observed gold’s proud stance at $2391.3 per ounce, silver’s respectable level at $27.11295 per ounce, and the instructive gold-to-silver ratio (G/S) of 88.20. These figures are whispering for our attention—nay, shouting—for us to allocate some portion of our wealth to these enduring elements. The message is unmistakable: the real value is king in a world of unpredictable fiat currencies.
Let’s not overlook other assets like palladium and platinum, with their recent valuations at $854.581 and $915.24, respectively. Alongside the conducting prowess of copper at $4.034, these assets betray a silent narrative about the health of the global economy. Energy commodities, such as Crude Oil at $73.55 per barrel and propane at $0.57, further reveal the dynamic forces at play in our current economic theatre.
A significant economic signal that warrants our concern is the uptick in the velocity of money. Velocity of M1 Money Stock M1 and M2 have been steadily rising since a recent low in 2021. The M2 money supply in the United States rose by $73 billion from the previous month to $21.025 trillion in June 2024, the highest in 16 months. This acceleration, which can sometimes herald boosted economic activity, is in our context laced with the anxiety-inducing possibility of runaway inflation, as an overabundance of currency chases an underabundance of goods and services, driving prices ever upward.
The rising traction of cryptocurrencies, such as Bitcoin, which is at $56,623.35, having recently fallen with all capital assets, captures the populace’s yearning for alternatives to the flagging, inflation-worn monetary systems over which central banks preside. Despite their swings, these upstart currencies encapsulate our collective desire for financial avenues unfettered by government edict and dilution.
Whether lauded or loathed, politics frequently and indelibly imprints itself onto economic patterns. Political decisions exert tremendous influence over market stability, often precipitating distortions in market performance and economic truth. Such manipulations compound the fragility of our already shaky fiscal structure and embolden my survivalist ethos.
In this climate of foreboding, my survivalist instinct and financial acumen implore you to consider the following: Total confidence in our current economic methodologies is naive, and a drive toward self-reliance and prescience is wise. De facto wealth preservation could well rest on a foundation of gold, silver, and the overlooked yet historically significant pre-1964 coins, popularly known as ‘junk coins‘, in the face of an anticipated collapse in the dollar’s purchasing power.
We are called upon to chart a course of vigilant divestment from debt-laden paper securities and pledge allegiance to assets capable of enduring economic calamities. A liquidity crisis lurks in the shadows of the debt markets, making identifying and accumulating robust assets not an option but a necessity.
Navigating this unfolding maelstrom requires not just the acquisition of precious metals but also the cultivation of a nuanced understanding of economic indicators, a watchful eye on political currents shaping our finances, and a readiness to adapt. Now, more than ever, is the moment for decisive commitment: exchanging vulnerable paper for steadfast metal, constructing diversified portfolios incorporating myriad asset classes, and championing a financial framework rooted in substance over speculation.
The lessons of history are clear: preparation and foresight are the stalwarts against adversity. As I continue my vigil, dissecting trends and guiding you through my writings, know that by embracing assets like gold and silver, you are forging armor to guard against the uncertainty that looms large on our economic horizon.
Folks, we can soft peddle this or throw back the curtains and see it for what it is – this system is coming down and is now irreversible. It is no longer up to us to attempt a fix, only to prepare for the outcome. The storm clouds gather, but your resolve, anchored in tangible wealth, can see you through the storm.
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.