➡ The U.S. Federal Reserve (Fed) is in a tough spot as it can’t control inflation anymore. The national debt is growing, even during economic growth, and interest payments are over a trillion dollars a year. This situation, known as fiscal dominance, means the central bank isn’t in charge anymore, but the bond market and the treasury are. As a result, gold and silver prices are rising, and the value of the dollar is expected to fall.
➡ The article discusses the potential economic instability due to the Federal Reserve’s focus on supporting the treasury rather than the economy. This could lead to inflation and a decrease in the value of the dollar, prompting investors to turn to gold and silver. The article also highlights the growing trend of de-dollarization and the shift towards a more diverse range of reserve assets. Lastly, it warns of a potential silver supply crisis due to increasing industrial demand and stagnant mining output, which could lead to a significant increase in silver prices.
➡ The demand for physical silver is increasing rapidly, causing concerns about market failure. This is due to the inability of paper markets to meet the real demand. Meanwhile, the U.S. debt situation is becoming more critical, with consequences for the economy and society. Gold prices are soaring, and silver, which usually follows gold, is expected to surge dramatically due to its undervalued status and increasing industrial demand.
➡ The article discusses the current economic situation, highlighting the ongoing inflation and the decreasing trust in fiat currency. It suggests that these factors are driving investors towards assets like gold, silver, and Bitcoin. The article also mentions the potential of silver to become a significant asset due to its industrial scarcity and increasing demand. Lastly, it warns about the collapse of the monetary regime, with the Federal Reserve losing control and the dollar’s value decreasing.
➡ The current crisis is causing silver prices to rise significantly due to factors like increased industrial demand and a global shift towards tangible assets. It’s crucial to act now and stay informed, as the opportunity may close once mainstream media and Wall Street acknowledge this trend. Remember, it’s important to consult with a professional before making investment decisions.

During fiscal dominance, I would certainly not want to be the head of a central bank, because basically all answers are bad. You’re watching Silver News Daily. Subscribe for more. The Fed is out of moves and Wall street knows it. For years they told us rising rates would fix inflation, that deficits didn’t matter, that the dollar was invincible. But now the illusion is breaking. Interest payments on the national debt are exploding past a trillion dollars a year. Deficits are growing even during so called economic growth. And the Fed is cornered. According to investment strategist Lyn Alden, we are now locked in a nightmare scenario.

Permanent fiscal dominance. That means the central bank no longer calls the shots. It’s the bond market, the treasury, the avalanche of compounding debt. And once that spiral starts, there’s no soft landing. The terrifying part, inflation is no longer something the Fed can fight. Every rate hike now increases the deficit. Every pause is seen as surrender. And every rate cut, that’s rocket fuel for gold and silver. With gold already breaching $3,500 and silver surging past $43, we’re witnessing the early tremors of something much bigger. Lyn Alden warns that we’re approaching a moment where faith in fiat evaporates.

And when that happens, only scarce real assets will matter. Gold and silver won’t just rise, they’ll go vertical. So how did we end up here? Why is the system unraveling now? And could $500 silver actually become reality in our lifetime? Stick around, because what you’re about to learn may be the most important financial warning of the decade. It partially ties into what I mentioned before, that higher rates in some ways accelerate things rather than decelerate things as they would under a more monetary environment. If you go back on why that inverse correlation historically exists, you could think of gold and the dollar as two competing monies or currencies, things that people can hold.

And gold, based on most estimates we have from the World Gold Council and others, has a supply growth rate annualized as something like 1 or 2% per year. We look at new min plus the tiny amount that’s lost, and then the estimated stocks of refined gold that exist in the world. It’s got this growth rate of 1% to 2% averaging around 1.5%, which is pretty reasonable in most contexts. It doesn’t pay you a yield to own it. If anything, you have a minor expense for storing it. Whereas dollars or dollar equivalents like Treasuries, dollars historically grow at about 7% in supply per year.

Broad dollars, most other developed market currencies are similar with emerging market currencies generally being higher, you do get a yield offsetting that. Now, in many years, especially recently, especially throughout the 2000 and tens, that yield is way lower than the supply growth rate. You can think of it as a net result. If you’re a 7% supply growth currency and you get paid 3% on it, you’re facing a 4% annual dilution rate. Basically. A lot of investors, there’s various mechanisms that they do this, but generally speaking, when they perceive the currency is harder so they have a higher interest rate compared to the growth rate of that currency, they’re more likely to say, I’m willing to hold that currency.

But in environments where the yield is nowhere near compensating for that growth rate, they say, well, I might as well hold gold because I can. Self custody doesn’t have that debasement rate, so the lack of yield is not a big deal because I’m not getting much of a yield with the currency either. You have that historical correlation. What’s interesting about 2022 and thereafter is that normally this aggressive move by the Fed, this pretty rapid tightening and a pretty high relative to the money supply growth rate at the current time, that would normally put downward pressure on gold.

But gold and Bitcoin and equities and a lot of other kind of assets with some degree of scarcity to them, they pretty much resisted this downward pressure from rates. And I think that largely goes back to my prior point that there’s been a regime change, that higher rates don’t slow things down as much as they used to. Or probably a more nuanced way of saying it is that the overall result is not as slowing. They still put down as much downward pressure on some sectors as they always have. For example, commercial real estate, the volume of residential home sales and things like that, all of that is pressured by the higher rates.

But it blows out interest expense, which does flow into the economy, and it blows out other parts of the federal deficit. And so when you’re in fiscal dominance, rates don’t really have the same effect against gold and other hard assets as they do during monetary. It all starts with the debt. Right now, the US government is running trillion dollar deficits in the middle of what’s supposed to be a growing economy. That alone is alarming. But when you add in the fact that over 30% of tax revenue is now going just to pay interest on the debt, you begin to understand the scale of the disaster.

This isn’t just unsustainable, it’s A self feeding inferno. The higher interest rates go, the more the government has to borrow just to service existing debt. That new borrowing pushes deficits even higher, which in turn spooks the bond market and forces the Fed to intervene. It’s a loop, a death spiral, and we’re already in it. This is exactly what Lyn Alden is talking about when she says the Fed is trapped because no matter what they doraise rates pause or cut, the structural deficit doesn’t go away, the interest burden doesn’t shrink, and the political will to slash spending or raise taxes doesn’t exist.

Instead, the only solution left is the most destructive one. Debase the currency in simple terms. Print more money, inflate the debt away. Let the dollar quietly collapse under the weight of its own promises. And make no mistake, that collapse has already begun. Foreign buyers are pulling back, treasury auctions are wobbling. And behind the scenes, the Fed is quietly preparing to restart QE even as inflation remains well above target. This isn’t stimulus, it’s survival. But every round of money printing makes the dollar weaker. And every tick higher in inflation makes real assets more attractive. That’s why silver, scarce, tangible and deeply undervalued, is becoming the go to escape hatch for those who see what’s coming.

And we haven’t even touched on the forces locking the Fed into this path with no way out, because basically all answers are bad. And it’s mainly because the issue is just outside of their purview and it’s outside of what their tools are designed to do. So their tools of interest rates are primarily meant to either accelerate or decelerate bank lending and therefore fractures of money creation. Or they’re meant to basically harden the exchange rate compared to other currencies and make it disincline speculators from say, borrowing the currency to buy another currency or something like that. They have that tool to try to slow down inflation.

And it can work under certain environments, but the costs of doing that are different under different environments. We have this notion that higher rates can taper down inflation, and we primarily get that from the 70s. But that was again a very bank lending driven type of inflation that wasn’t primarily because of fiscal dominance, whereas in the current environment bank lending rates are normal and they were normal throughout the whole pandemic lockdown post the inflation period we went through. None of that was because of excessive bank lending. Instead it was because of very large monetized fiscal deficits.

They were explosive, obviously from the 2020 and 2021 period. Now they’re less Gargantuan, but they’re still sustained at that 6 to 7% GDP level. As they try to raise rates, they do get the effects of less borrowing and a harder currency compared to other currencies. But then they BL the fiscal deficit. And so really, it’s kind of like treating some of the symptoms and even exacerbating, ironically, some of the other symptoms rather than really going after the root cause. Because the central bank doesn’t have jurisdiction over taxing and spending. And so the best they can do is mention it.

And it puts them in a really difficult place just because their tools either they have mixed results rather than clear outcomes. It’s almost like a patient with multiple conflicting ailments and a medicine that might fix one ailment makes another ailment worse. So there’s kind of no good answer at that point. And that’s really what the Fed kind of find itself in. Fiscal dominance isn’t a theory anymore. It’s the reality guiding every decision at the Federal Reserve. In a normal system, the Fed raises rates to fight inflation independent of politics. But we no longer live in that system.

What we have now is a regime where monetary policy is dictated by the fiscal needs of the government. The Fed can’t hike without crashing the bond market. It can’t pause without sending inflation expectations surging. And it absolutely cannot allow interest rates to rise faster than the government can afford to pay. So what happens? The Fed becomes the buyer of last resort, monetizing debt under the guise of financial stability. But all it’s really doing is sacrificing the currency to keep the system afloat. This is the trap Lyn Aldin warns about. Fiscal dominance means the Fed serves the treasury, not the economy.

And that changes everything. It turns rate hikes into a weapon against the government’s own solvency. It makes budget deficits a central bank problem. And it leaves hard money, the kind you can’t print, looking like the only safe harbor left. Every fiat currency that’s entered this phase has eventually imploded, and the signs are already here. Central banks loading up on gold, nations cutting deals to trade outside the dollar, and inflation proving far more stubborn than policymakers admit. But here’s what most people Once fiscal dominance takes hold, inflation isn’t just a side effect, it becomes policy. A weak dollar becomes the escape hatch, and investors who don’t position themselves accordingly are left holding paper promises that lose value by the day.

That’s why the smart money is quietly rotating into gold and silver. Because once the trap is sprung, there’s no going back. And the trigger that sets this all off is closer than you think. Good set of questions. De dollarization is a complex subject because while it is happening around the margins, it’s generally a lot slower than you’ll see in a lot of media talking about it. Basically it’s kind of this period of time over the past decade where the major trade surplus nations are no longer really accumul treasuries. Most of them are not really rapidly selling treasuries.

They’re just not really accumulating anymore around the margins. They’ve been accumulating gold instead and just otherwise not rapidly accumulating reserves in general because they’ve been dealing with a stronger dollar environment, which really means that they don’t accumulate a lot of reserve assets. I think the biggest trends facing this what changed now is that one we got past that period of globalization and ever falling interest rates. So now we no longer have that interest rate falling offset. So if you double your debt but you cut your interest rate in half, you keep your interest expense roughly the same and going forward they don’t really have that falling interest rate structurally offset anymore.

The other one as I mentioned is the demographics are totally different than they were in the 80s and 90s. While a lot of those calls for an acute crisis were premature, we’ve kind of reached now a lot of the things that those people were worried about back then. When you add all these other fact it around the margins, the fact that the foreign sector is not accumulating our treasuries, at least not at the rate that we issue them, their nominal amount does gradually go up over time, especially from the foreign private sector. Their percentage of total US debt is generally shrinking, which puts more of the burden of accumulation domestically either from the private sector or in some cases from the Fed during quantitative easing.

Generally speaking that means that more of the fiscal deficits are felt. But I generally viewed that the interest rates and the demographics are probably bigger factors than the de dollarization that’s happening. But over a multi year, even multi year decade timeframe, that general trend of de dollarization matters. I started actually writing about that back in it was 2020 and my view was that we are entering a more multipolar world in terms of currencies. So it’s not as though the dollar gets usurped by some other fiat currency. We get this kind of broadening effect of gold re entering the system and around the margins certain countries saying well, I’ll hold a little bit of Chinese currency or a little bit of this other currency and you have more of a plurality of reserve assets, of which the treasury is generally a slight loser in that environment.

Just before we get going, we just launched the official Silver News Daily Telegram. To kick things off, we’re running a 10 ounce silver giveaway. Yes, real physical silver. Not a voucher, not digital credits, actual bullion. This telegram will be our new home for real time silver discussions, market insights, collection picks and everything. Precious metals. It’s where the community truly comes alive. Here’s how to enter the 10 ounce silver giveaway be subscribed to Silver News Daily on YouTube. Turn on the notification bell, comment 10 ounce giveaway on three separate videos, be an active member of the Telegram group and say hi.

Once we hit 500 Active Telegram members, we’ll pick one lucky winner to receive 10 ounces of silver shipped directly to you. So get in early, stay active the silver supply crisis is the silent engine behind the price explosion nobody’s prepared for. While investors focus on inflation and interest rates, the physical market is flashing red. In 2025 alone, the global silver supply deficit is projected between 117 and 206 million ounces, its eighth consecutive year in the red. Mining output has stalled around 835 million ounces, still below its 2016 peak. Meanwhile, industrial demand is setting records. Solar panels, electric vehicles, AI infrastructure, these sectors are devouring silver at a pace the mining industry simply can’t match.

Solar alone consumed over 230 million ounces last year, nearly 20% of total demand. EVs are scaling faster than anyone predicted, and the AI boom is only just beginning. That’s where this gets dangerous. Unlike monetary demand, which ebbs and flows with sentiment, industrial demand is sticky. It doesn’t go away in a recession. It accelerates through it. Manufacturers don’t care about silver’s price. They’ll pay whatever it takes to secure the metal, and in doing so, they’ll drive retail investors out of the market. And the response from miners. Lagging new projects are delayed, environmental permits are tightening, and silver is increasingly being treated as a secondary byproduct, not the primary resource.

That’s why experts warn that this deficit won’t be a one off event. It’s structural, built into the very fabric of the green transition. And it’s why premiums on physical silver are hitting records. COMEX inventories are draining and delivery times are stretching out. When demand overwhelms supply in any market, prices rise. But when it happens in a market this thin, with this much financial leverage baked into the paper side, the Repricing isn’t gradual, it’s explosive. And we’re already seeing the early tremors. Silver, over $43 is just the beginning. The real breakout comes when the market wakes up to the fact that the physical metal simply isn’t there.

Basically it’s a new regime change, right? And so it’s a different investing environment than most people are used to over a, you know, call it a 40 year investing time price and basically anybody alive and trading today. And so for the past 40 years or so, kind of before 2020, we can call monetary dominance. That’s an environment where, for example, bank lending, and by extension the central bank that has various tools to accelerate or pull back on commercial bank lending, that’s the more dominant thing that causes business cycles and contributes to what’s going on, what happens over time as debt builds up, especially on the public side of the ledger, so the federal ledger, we gradually shift over more toward fiscal dominance, which is to say that fiscal deficits are now largely larger than the amount of new bank lending in a given year, and even the amount of bank lending plus net new corporate bond issuance.

And so fiscal dominance is a more driving aspect of the economy. And then also there’s the added issue that when central banks try to slow down inflation or slow down the economy in general, when they raise interest rates, they do that to try to slow down bank lending. And the problem is that when you have say 30% federal debt to GDP, that works pretty well because when you raise interest rates, you slow down bank lending. And while you do contribute to the federal deficit because you contribute to the federal government’s interest expense, the slowdown on bank lending is larger.

But when you fast forward to the present day and you have something like 120% debt to GDP and you raise rates, while you do slow down bank lending, you actually blow out the fiscal deficit even bigger, even by a larger absolute dollar amount. And that’s actually somewhat stimulating for parts of the economy that receiving it, and somewhat inflationary as a cost of that. And so basically their tools work differently when you have fiscal dominance. And it’s not just like a one year thing or a multi year thing. It’s kind of a new regime that we find ourselves in more structurally compared to that past four decades.

The cracks are now showing at the very core of the silver market, Comex. This is the battlefield where physical silver and paper promises collide. And for years it’s been dominated by leverage derivatives and institutions confident that the supply would always be there. But now that confidence is unraveling. Since 2020, COMEX physical silver inventories have collapsed by nearly 70%. And in September 2025 alone, we saw record deliveries, over 12,000 contracts, each worth 5,000 ounces. That’s more than 60 million ounces demanded for delivery in just one month. This isn’t retail panic. This is institutional flight. Hedge funds, sovereigns, and family offices ditching paper claims and demanding the real thing.

And the message is they don’t trust the system anymore. Why would they? With silver ETF seeing $40 billion in inflows in the first half of this year and premiums surging in every major market, the physical squeeze is accelerating. When physical metal starts vanishing, and when vaults are being emptied faster than they can be restocked, the risk isn’t just higher prices. The risk is market failure. Already there are whispers of settlement issues, delays, even forced cash delivery instead of metal. And if that becomes the norm, if investors begin to doubt whether Comex can actually deliver, then the exodus from paper to physical will go parabolic.

That’s when you get price discovery outside the official exchanges. That’s when the real market asserts itself. And in that kind of environment, manipulated price ceilings shatter and silver starts moving in dollars, not cents per day. Lyn Alden and other seasoned analysts are watching this closely, because this is where silver’s quiet suppression ends. The paper markets can’t cover real demand forever. And once the illusion breaks, silver won’t just rise, it will melt faces. Because in a world where trust in fiat, trust in central banks, and now even trust in market infrastructure is fading, only the real thing matters, and the institutions are already making their move.

It matters because where that debt is held matters. People often say that we owe the debt to ourselves, but that’s not really the case. I mean, if you have a certain amount of treasury bonds and I have a certain amount of treasury bonds, we’re each owed a different amount of interest and a different amount of principal. What is ourselves in this concept? This is a country of over 300 million people and various entities, and of course, some global entities hold our debt. And so all of that is basically, we have this shared ledger that we’re all attached to, kind of whether or not we like it or not.

In many cases, our income, our liabilities, our assets are often denominated in dollars, or at least a big portion of them. And everyone’s got to figure out what we’re going to do with this ledger, including especially the government. And so the debt, who owns the debt and how much debt there is. Very much does matter. It’s not as though you can just easily take from one and give to another, nor necessarily you should. And so that’s why the debt is really an issue. Even though it’s denominated as something that the country can print, there are still of course consequences when they do print it.

And so it’s kind of what I covered in one of those recent pieces is that one of the problems is there’s a little bit of a boy that cried wolf syndrome here. There are multiple people in the 80s and early 90s saying that debt was going to be a massive issue soon and they couldn’t really have foreseen some of the disinflationary effects that were in the world. So you had the fall of the Soviet Union, the opening of China, so you had all this kind of Eastern labeling, resources connect with Western capital. Basically a global productivity boom.

All that was offsetting of many types of costs and supplied a lot of resources that allowed interest rates to get a lot lower than many people could have envisioned in the 80s or 90s. And so a lot of this extended a lot more long than people thought. The issue is that now we basically bounced off zero rates. Now we have over 100% debt to GDP, we’re more in fiscal dominance. Interest rates as I mentioned, have less of an effect. Demographics are now very age. We have much top heavy entitlement programs, so Social Security, Medicare and veterans benefits.

And these types of things are a lot more expensive on a per capita basis, on the taxpayer basis than they used to be. These things have real consequences. While many people expect it to be at an acute crisis like a dollar blow up or something, instead it tends to be more of a longer term issue. People often say when will the debt matter? And I would generally say, well, the debt’s been mattering for years now. We’ve been above the inflation target it for years now. It wasn’t because of excessive bank lending, it was because of the fiscal environment.

Even when that explosive stimulus was done, it’s still elevated because of this more sustained background level of fiscal dominance that we have. And of course the issue is that when you’re kind of running the economy like that, from a fiscal perspective, it inherently ends up being a two speed economy because for entities on the receiving side of the deficits, it tends to be a pretty good economy. Another can, if you’re not on the receiving side of the debt is you’re mainly on the tight side of the monetary environment. So for example, someone who’s looking to buy a house right now and is not receiving Social Security, not receiving Medicare, and not funded by Department of Defense or these other kind of big sectors that on the receiving side of fiscal deficits, they’re facing the costs of it, but not really benefiting from it.

So you have that kind of heterogeneous mix in the economy which has really profound social impacts and economic impacts. And these things are, you know, we’re working through already, and I think we’re going to be working through for many years. Gold has already made its move, and it’s screaming the signal silver investors have been waiting for. At over $3,500 an ounce, gold is breaking every resistance level and shattering every bearish narrative. Central banks are hoarding it, nations are settling trades with it. The smart money is already there. But here’s what most people Silver always follows gold.

And when it does, the move is never subtle. Historically, silver doesn’t just catch up, it overshoots. It’s more volatile, more explosive. And when the gold silver ratio is stretched like it is now, hovering between 75 and 87, it’s a powder keg waiting to blow. That ratio is more than just a number. It’s a market signal. When it gets this wide, it’s flashing. One thing, silver is dramatically undervalued relative to gold. The last time this ratio reversed, silver surged from under $10 to nearly $50 in under three years. And before that, in 1980, it pulled off a similar moonshot, going from under $6 to nearly $50 in just months.

Each time, gold made its move first and silver followed, like a coiled spring snapping into action. The setup right now almost identical, but with one major difference. The macro backdrop is even more extreme. We’re not just dealing with high inflation, we’re dealing with a complete loss of monetary credibility. The US is drowning in debt, the Fed is stuck, and the world is scrambling for anything tangible. That’s why silver, often called gold on steroids, becomes the ultimate bet when Fiat begins to fail. Because unlike gold, silver has something else going for it. Exploding industrial demand. And when you combine that with financial chaos, you don’t just get a price rally, you get a silver supernova.

I think we’ll be talking about this in the2030s. I think this will be going on for quite a while. I think it can be punctuated by many crises. Probably a really good example is that back in 2022, there was the UK guilt crisis, so they had a bit of a blow up with their sovereign debt. People don’t really talk about it today because it wasn’t some massive generational crisis. It was a blip that the central bank basically had to put out a fire and contribute to a little bit of inflation that was already happening. And now they still have an ongoing FIS.

It’s not the same as it was in 2022. Now they’ll probably have one again of a slightly different flavor. And I think the US is in a somewhat similar boat, which is that basically the background now is like 6 to 7% of GDP deficits. Kind of a run it hot economy, especially if we’re on the receiving side of those deficits and punctuated potentially by little periods of crises. It could look like the 2019 repo spike, it could look like the 2022 guilt cr crisis. And in the US we saw kind of similar but milder things where the treasury started changing some of the ways it issues bonds.

And so I think that’s kind of how I view it. I’ve been actually using the phrase nothing stops his train, which has both bullish and bearish connotations because it basically means one, virtually no attempt to slow down the deficit is going to work, which is bearish. On the other hand, it is kind of pointing out that it’s also not going to derail in the next year or two or three, that this is going to be going on for most investment time horizons, which I generally look out five plus years on the longer end of my time horizon, say.

I think this issue at least goes probably well into the. This is where things start to accelerate. Because once the Fed loses control over real interest rates, when inflation continues climbing while policy rates stay frozen or even begin to fall, you enter the danger zone. Historically, this is how hyperinflation begins. Not with fireworks, but with slow erosion. At first it’s just higher prices, then it’s currency weakness, then it’s panic. And we’re seeing that progression right now. Inflation is still running hot despite tightening. The Fed is widely expected to cut rates again even as deficits soar and debt to GDP breaches 120%.

That means the real interest rate, adjusted for inflation, is collapsing. And when real rates go negative, the incentive to hold fiat disappears. Think about it. Why would anyone want to hold bonds yielding 3% when inflation is 5% or sit on cash that loses purchasing power every month? This is exactly what’s driving investors into gold and silver. Gold has already broken past $3,500. That’s a signal not just of inflation fears, but of a broader collapse in confidence. And silver, it’s always lagged. Gold at first. But when it catches up, it does so violently. But here’s the most dangerous part, the psychological shift.

Inflation, once it becomes embedded in expectations, feeds on itself. Consumers start front running future price hikes. Businesses raise prices preemptively. Wages chase costs in a loop. And the Fed, it becomes irrelevant. Every pivot, every QE program, every dovish press conference, they only serve to confirm what the market already knows. Monetary debasement isn’t temporary. It’s the plan. Lyn Alden’s warning isn’t just about inflation. It’s about the end of trust. When people stop believing that their money will hold value, the stampede into real assets begins. And that’s where silver enters the picture. Not just as a hedge, but as a lifeboat in a system that’s already taking on water.

So I’m bullish along both, and I have been for many years now. Gold obviously has the long term history and the irreplaceability as a hard physical money. Bitcoin is 16 years old, so it’s newer than gold. But it has portability enhancements compared to gold. And it also has absolute scarcity. So over time, right now, for example, a supply growth rate is lower than gold. It also has certain kind of benefits of speed. So for example, if we both had a Bitcoin wallet, we could hold up our phones and I could scan your QR code and we could make a payment right over this call.

Whereas if we were to do something with gold, it would require a chain of credit and counterparties in this type of environment. So they have different pros and cons. And then especially when we consider that there’s a global world. So in the United States, many of us don’t think about crossing borders too frequently. But in many parts of the world, people are in Lebanon, people are in name the country that’s having some sort of currency crisis or political crisis. And people might save their assets and want to leave with them, which is not always possible with other types of bear assets or securities and things like that.

A self custodial portable ledger is very attractive. I view it like a new protocol. There’s Ethernet, there’s simple mail transfer protocol, there’s Internet protocol, there’s, there’s all these kind of communication standards that we’ve kind of solidified around for many decades. And I view generally Bitcoin as achieving network effect dominance as a communication of value. So obviously it relies on our technological connectivity to varying degrees. It’s robust to handle shocks. If your power goes out, you still have your keys, for example, you Just can’t transact in the moment. So it is quite robust, but it’s a different system than gold, so I think that they serve different purposes.

Bitcoin currently is around one tenth of the size of gold. So you’re talking about a $2 trillion network compared to an estimated $20 trillion monetary network. And that’s in a sea of 1,000 trillion dollars worth of global assets. So when major banks kind of look around and they try to estimate how much real estate’s out there and global equities and global currencies and global bonds and gold and art and, and everything else, these are both kind of tiny percentages. And I think they’re both growing into that much larger sea of assets. I think bitcoin is moving faster because starting from that smaller base and it’s younger, but they often go up and down at different times.

And I’ve generally been long both. And one of my recommendations, or the way that I’ve been doing it at least, is to say if you start with a 6040 portfolio, that has some frictions in a fiscal dominance environment, especially the 40% bond portion. So my general view is to tailor it toward a more debasement environment. If you swap out at least a portion of those bonds with gold that’s beneficial, you get kind of a similar volatility profile, but generally better returns. And you can also consider swapping in a portion of the equities with bitcoin, where you have similar high volatility asset.

And it’s been an attractive mix so far. So I’m bullish. But this is the moment where everything converges. Monetary chaos, industrial scarcity, institutional distrust, and suddenly 500 silver dollars doesn’t sound so crazy. In fact, it starts to look conservative. Because when you layer this year’s 40% silver price rally on top of the gold silver ratio’s historic imbalance, the collapsing COMEX stockpiles, and the ballooning supply deficit, what you get isn’t a commodity. It’s a pressure valve, a release mechanism for decades of financial distortion. And when that valve finally bursts, silver won’t just react, it will erupt. Lyn Alden isn’t alone in her warning.

A growing number of analysts now believe that silver is entering what could be the most aggressive phase of its bull market in history. And here’s why they’re the conditions for a vertical move are all locked in place. We have deeply negative real rates. We have fiscal dominance tying the Fed’s hands. We have demand from solar, evs, AI and green tech ramping Exponentially. And we have a public and institutional class that is rapidly losing faith in fiat. All it takes now is a spark. A failed bond auction, a missed COMEX delivery, a dollar downdraft, and silver goes vertical.

This isn’t about hype, it’s about math. It’s about physics. It’s about history. Because every fiat system that enters this stage eventually faces a reckoning. And every time that reckoning comes, Silver doesn’t just participate, it outperforms. The $50 highs of 1980 and 2011 weren’t ceilings, they were previews. In inflation adjusted terms, Silver would need to hit over $150 just to match past peaks. Add in today’s macro storm and a breakout past $500 becomes a real tangible probability, not a fantasy. But here’s the catch. Once silver starts moving, it doesn’t give you a second chance. It moves fast.

It gaps higher. And if you’re not already positioned, you’re left chasing. That’s why those who understand what’s coming aren’t waiting for permission, they’re preparing now. Because they know the system isn’t just broken, it’s breaking. And silver isn’t just an investment anymore, it’s the escape hatch. In general, I would somewhat separate the concept of debasement from inflation, because inflation also has a productivity component in it. So as you increase the money supply, what happens with actual prices with goods and services will partially depend on what’s happening. With productivity grows. You can imagine a scenario where money supply is growing pretty quickly, but productivity is also growing pretty quickly, and so prices are not.

So, for example, televisions over the past 20 years, they don’t grow in price because despite all the debasement, the productivity of making TVs has been so rapid that it’s kind of offset those price increases. Whereas we don’t get radically better at making gold, we don’t get radically better at making other pretty scarce things. Water from property, fine art, anything that’s kind of energy intensive and very labor intensive. Those things have generally gone up in price pretty close to the longer term debasement rate, because they don’t really have much of a productivity offset. And so during fiscal dominance, it depends on what’s going on with those productivity offsets.

And that can influence CPI readings and so can other things like tariffs or the ways they even measure it. But when you do look at the generally the most scarce things, especially if they’re not in a local bubble with very high levels of euphoria, you should generally expect that you’ll get pretty good sustained performance from those scarcer things. That doesn’t mean that you can necessarily buy things at any price. Sometimes things go up fairly quickly, and they’re prone to cool off for half a year, or in some cases even multiple years. You still have to watch out for valuations and sentiment to some degree, but generally speaking, I’m bullish across the board on scarce, scarcer assets than what you generally find with currency and with bonds.

And gold, of course, happens to be a global one. So instead of an asset like a US stock that has its revenues earned in dollars, gold is this global asset that floats in multiple currencies and therefore tends to be a pretty attractive what we’re witnessing isn’t just another market cycle. It’s the slow motion collapse of a monetary regime. The Fed is no longer in control, inflation is no longer transitory, and the dollar is no longer sacred. As Lyn Alden warns, this is fiscal dominance in action, a system where debt dictates policy and every attempt to fix the problem only makes it worse.

We’re not heading toward a crisis, we’re already in one. And in this kind of environment, silver doesn’t just survive it. From exploding deficits to collapsing COMEX inventories, from soaring industrial demand to a global flight into tangible assets, every signal is screaming the same silver is going much, much higher. The question is no longer if $500 silver is possible, but whether you’ll be in position when it happens. Because by the time the headlines catch on, by the time Wall street admits the truth, the smart money will already be gone and the window to act will be closed.

So if you’re watching this, now is the time to dig deeper. Stay informed and prepare accordingly. Subscribe to the Channel for more deep dives like this and join the growing community of investors who refuse to be caught off guard by the coming reset. This is not financial advice. Always speak to a qualified professional before making investment decisions. Conditions sa.
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