The Greatest Buying Opportunity In The History of Mankind
Seems like a pretty outlandish statement, until you think about it and break down the reasons why. Prior to 1971 when the US(as well as the rest of the world) went off the gold standard and went to a total fiat monetary system, most currencies were backed by gold.(At least the global reserve currency was.) That means inflation was minimal because central banks could only create additional money that corresponded to the increases in gold mined. Between 1-2% annually. Since 1971 there has been no discipline or limit to the amount of fiat currency created by all countries combined. The only reason this has grown so out of control with little ramification(until now) is that the US and UK have controlled the price of gold and silver by the use of paper derviative contracts and manipulation of price. That is coming to an end. As a result of a number of factors, most importantly the Basel 3 rules for gold and the exchange for physical terms on the Comex for both gold and silver, the amount of inventory is almost gone(especially in the case of silver. The governments have gotten away with this manipulation and price control for over 50 years. They know it is almost over and are now positioning for the coming end of the price suppression. The Comex is going to run out of metal, if not both, definitely silver. That is going to close down the exchanges as far as derivative trading is concerned. This will lead to a declaration of force majure, which means contracts will have to be settled in fiat.(no more exchange for physical because the metal won’t be available, at least not at anywhere near current prices.) The ramifications to the economy, the stock and bond markets and especially the real price for physical gold and silver will be so great that governments will fall and some will fail. Knowing this was inevitable they are preparing for an explanation(excuse) as to why everything is going to go haywire. Congress will not reach a debt agreement because Biden and the Dems need at least a shut down of the government(if not an actual default) to blame the Republican House for not raising the debt ceiling. The same illogical stubbornness that they have shown for causing and continuing the Ukraine war will be repeated, to not accept any budget cuts or real negotiations over the debt limit. They need the resulting crisis as cover to try and explain the reasons for what is coming and as Biden has done throughout, not only his Presidency, but his entire career, placing blame everywhere else, except where it belongs, upon himself for his policies and actions. Therefore, getting back to the title and theme of this post, the recent small correction in gold and silver that ended last week, after the options on the metals futures contracts expired, has presented the greatest buying opportunity in the history of global financial markets. Gold and silver physically representing wealth and protection of purchasing power and miners and ETF’s and derivatives will all explode higher. The problem with all but the physical, is that they will still be priced in fiat which will be inflated away to worthlessness.(eventually) The physical will allow you to exchange for the necessities of life.(food, water, shelter, weapons and ammo etc.) I would expect gold to break to a new all time high in the $2100-$2200 area and silver to reach or just exceed the $30 area, BEFORE the Comex collapse. They will likely explode higher if the government shuts down and or the US defaults on it’s debt, which will likely be timed to when the Comex defaults and force majure is declared. This is likely sometime in June or maybe ironically, on the anniversary of the US, July 4th. It was a great run. What happens next, is anyone’s guess. Buy BEFORE Wednesday’s FED meeting.
I think it’s starting a little early. CEF up by 2.63% although gold and silver haven’t jumped that much yet.
I heard back in Germany after hyper inflation hit, you could buy a house in Berlin for one ounce of gold. Maybe we’re going to see what that looks like again sometime.
Also, remember when some bank executive a few year back laughed at gold by calling it a 6,000 year bubble? Imagine how big a bubble can get in 6000 years.
Thanks for the background work CM
Very interesting