At the heart of any thriving society lies its economic strength, which is a function of fiscal stability and the public’s confidence in the currency. Recent events, including FEMA’s deliberate refusal to provide or allow aid into hurricane-devastated areas in the USA has eroded confidence in the government and its artificial constructs, like the private Federal Reserve’s debt-based currency.
When that confidence wanes, as it inevitably does under the weight of excessive debt and the erosion of purchasing power, prudent individuals turn their gaze toward assets that have historically weathered economic upheaval: gold, silver, and other precious metals.
As we survey the current landscape, our attention is unavoidably drawn to several red flags indicating economic distress. The U.S. debt market, for instance, has burgeoned to a point where servicing this debt requires the impossible task of borrowing more just to pay off interest—requiring more borrowing again. It’s akin to digging oneself deeper into a hole with the elusive promise of escape.
Recent market data reflects these troubling dynamics. The price of gold stands at $2644.08 per ounce, and silver at $31.669 per ounce, both commanding attention assets holding their value while prices rise, demonstrating the erosion of dollar purchasing power.
The palladium and platinum markets, at $1007.774 and $977.59 per ounce, provide alternative havens for diversifying risk.
Observe the gold to silver ratio (g/s) currently at ‘83.49’, suggesting that silver, in particular, may present a compelling proposition. In times past, the ratio has been markedly lower; thus, silver’s current evaluation might signify a possibility of significant appreciation, especially considering historical patterns during economic downturns. I repeat my question of last week – is it time to sell your gold for silver?
Meanwhile, the benchmark U.S. 10-year Bond Yield, an indicator of investor sentiment and economic outlook, is rising again despite the emergency interest rate reduction and is now 4.03%. Given the inverse relationship between bond prices and yields, this snapshot suggests an increased wariness among investors toward long-term governmental promises.
Even with rising money supplies, and continued debt purchases moving money away from steadily devaluing debt toward money flowing into the theatre of a healthy stock market – interest rates continue to push higher begging for even more ‘easing’. Easing is the doorway to runaway inflation – this cycle can only repeat so many times.
The stock market has now joined the ranks of some of the greatest Ponzi schemes of all time. New federally minted currency pushes stock prices up while insider investors cash out and bondholders exchange devaluing debt for devaluing dollars much of which is recycled to hyper inflated stock valuations.
In cryptocurrency, Bitcoin is a robust $62939.64, alluding to the growing appetite for assets unshackled by traditional banking systems. Energy commodities present a mixed outlook, with U.S. crude Oil at $75.07, countered by a more tame Mont Belvieu LDH Propane (OPIS) at $0.57. We should expect oil prices to continue to rise due to hyperinflation and the conflagration of the Middle East oil regions.
The price of copper, an economic bellwether due to its wide industrial application, remains high at $4.5395, signaling sustained industrial demand and hinting at inflationary undercurrents that permeate industrial commodities.
This confluence of factors —the U.S. and Western economies’ detachment from the pure mechanics of free markets, the delve into ever-greater levels of debt, and the potential failure of fiat-based currency systems—suggest that the time is now to secure one’s financial future with solid assets. Gold and silver, beyond their allure, offer refuge from the potentially harmful policies that have led us to the precipice of economic strife.
The societal signs of stress are evident beyond the financial markets—employment and job reports, although ostensibly robust, often mask the undercurrents of socioeconomic instability. Recent job reports have been later updated to show significant job losses, not the gains first reported. Financial and economic reporting provided by the governments can no longer be trusted, reducing confidence in the dollar money monopoly.
A housing market pushed to its peaks by low interest rates presents a facade of prosperity, while affordability and quality of life for the average family deteriorate.
In essence, the advisability of investing in physical gold, silver, and pre-1964 coins—those ‘junk coins’ that retain real metal content—is becoming universally apparent. These tangible assets serve as bulwarks against the continued devaluation of currencies and the overreach of governmental indebtedness.
Political maneuverings, often veiled in the rhetoric of market stability and growth, directly impact financial outcomes. Manipulating economic levers has led to inefficiency that distorts market realities, setting the stage for a correction that could significantly recalibrate wealth distribution.
Like a survivalist backed by historical insight, the savvy observer would do well to heed the lessons of past economic collapses. With the market signals we’re experiencing today, from soaring precious metal prices to fluctuating bond yields, the warning is clear: Consolidate your position in tangible assets before the full weight of a dollar collapse or a liquidity crisis is upon us.
To our readers, I extend a clarion call to action: Recognize the looming signs of economic turmoil and act to safeguard your wealth. It is not merely an investment strategy but a commitment to financial preservation that should guide us in these uncertain times. Secure your future and peace of mind with assets that endure.
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.