From this point debt and debt-based assets get destroyed while silver prices see some real stellar increases. This point cannot be stressed enough, since debt or credit is what this current world is built on.
Not only is gold in a bull run, but it has entered the phase which can be compared to a bank run
The creation of the Federal Reserve Bank and the so-called Second World War, was among the most important events and actions that contributed to bringing the world to a situation where a new international order was required/possible.
In other words, the world was ripe for a new monetary order that could be forced upon it, due to the vulnerable condition it found itself in. The order that was forced upon it was not in the best interest of the majority, but those of a special ownership class.
From this point debt and debt-based assets get destroyed while silver prices see some real stellar increases. This point cannot be stressed enough, since debt or credit is what this current world is built on.
After years of credit proliferation, the world is again ripe for a new monetary order that could be forced upon it, due to exceedingly high debt-levels and the spoils of war.
A big year for silver.
We have now moved into an era of rising interest rates that is similar to a period that started in the early 1940s.
Instead, the US is currently facing a similarly massive debt liability and a rising interest rates environment, while the nations are actually about (and already beginning) to abandon the US dollar over the coming years.
The analysis of two similar economic cycles has revealed some interesting facts about silver and the monetary system.
There is no excerpt because this is a protected post.
It is significant to note that silver and the Dow has been moving in similar direction at least since 2019. At some point the two are bound to diverge
The fact that silver is still way below its all-time high means that the worst is yet to come for the world economy, and for the world in general.
BTC Still have some room to go higher it seems.
This makes perfect sense in these time, since it is all about the US dollar.
Bitcoin is currently playing catch up, and this brings us to why Bitcoin is actually leading in the short-term time frame
Gold, silver and cryptocurrencies will feast on US Dollar weakness like hungry lions on weak prey.
It is the the massive debt. It cannot be serviced. It will collapse the whole system.
Often we see a key or big decline in the USD/ZAR ratio just before a massive silver spike.
The US dollar cycle has turned and is likely to be under severe pressure over the coming months. This will significantly support USD gold prices.
We are still early in this rally, so we could see a huge move
A breakout at the top blue line could see price going parabolic.
For now, they all provide “crisis value”, by simply being an acceptable fiat alternative to many.
The Dow went from around 2700 at the peak in 1987 (point 1) to a top of more than 29000 in 2020. Silver will do even better.
The current year has a lot in common with 1973 (as illustrated in previous posts), and I have every expectation that we will see a great year for gold and silver prices.
Signs of a monetary collapse – Bitcoin (BTC) new all-time highs are coming.
The recent rally also really ignited when it passed this important level.
There were two other periods in history that similar situations occurred, but gold actually was warning of a system collapse (or system bank run, if you will)
A comparison to the 70s situation will eventually tell us a lot about the current condition of the monetary system.
A breakdown of the US dollar would be a great confirmation of a sustained silver rally
The conclusion to draw from this: things take longer in the current period, but they go higher.
Until a significant portion of these debts is repaid or defaulted on, it would be foolish to talk about a top in precious metals.
The point is that silver is still really cheap
there is a relationship between significant Gold rallies and the US Dollar index.
We are now just after the Dow peak in the current cycle. If the Dow peak in Feb 2020 was indeed the top, then we are likely to see a Silver rally that will at least match the x10 during the period from 1977 to early 1980.
During each credit cycle, Silver and Gold prices mostly loses relative value to assets like general stocks and commodities.
Since the current stimulus (increase in Fed balance sheet) is likely to fail, due to the massive deflationary forces , they are likely to just keep on pumping more and more.
So, for the Silver investor, what the US Dollar index might do over the coming years, is a very important question to answer.
Choose to likely get X10 returns with silver or face the risk of getting your general stock market investments cut by at least 90%, in my opinion.
Hubert Moolman on SILVER and GOLD 