Tag Archives: monetary reset

A Matter Of Time Before Stocks Collapse And Gold Soars

“Look at the underlying fundamentals that are driving it [gold and silver prices]. The financial condition of the country that hosts the reserve currency deteriorates more everyday and the Central Bankers are trying to kick the can down the road on an inevitable financial system and monetary system reset by printing more money.”

The economy continues to show signs that the “sugar high” from the Fed’s and Government’s multi-trillion dollar money printing and stimulus spending is wearing off. The latest economic reports – notwithstanding the moronic homebuilders “sentiment” metric – reflect a renewed downturn in economic activity plus the numbers reported in July are being revised lower (see today’s retail sales report, for instance).

As long as the Fed continues to devalue the dollar by printing money and as long as Treasury debt continues to increase at an increasing rate, the fundamentals are in place for a monster move in gold, silver and mining stock.

Michelle Holiday of Portfolio Wealth Global invited me on to her podcast to discuss the factors that I believe will lead to a stock market avalanche and soaring values in the precious metals sector:

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You can learn more about  Investment Research Dynamics newsletters by following these links (note: a minimum subscription period beyond the 1st month is not required):  Short Seller’s Journal subscription information   –   Mining Stock Journal subscription information

Note:  I do not receive any promotion or sponsor payments in any form from the mining stock companies I present in my newsletter. Furthermore, I invest in many of the ideas personally or in my fund.

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Gold (And Silver) Are Extraordinarily Undervalued

Many subscribers ask me about taking profits on their physical gold and silver. While there’s nothing wrong with taking profits on your metal, it defeats the purpose of converting fiat currency into physical gold and silver.

The chart above from James Turk (Goldmoney.com) illustrates the power of gold’s (and silver’s) wealth preservation attributes. The chart shows the cost of oil measured in dollars (green line), euros (purple line), pounds (blue line) and goldgrams (red line). It uses 100 as the “base” price for oil.  A gram of gold buys the same amount of oil now as it did in 1950.  In contrast, takes a considerable amount more of dollars, euros or pounds to buy the same amount of oil now as each would have purchased in 1950.

If you have large profits in your physical gold/silver holdings and taking profits will make you feel more comfortable, by all means do so.  I’m holding all of my gold and silver for when the dollar collapses and there’s a monetary reset.  A reset that incorporates gold and silver into the currency system should incorporate a substantial upward revaluation of gold  (and silver) priced in all fiat currencies to a level that makes me indifferent between holding the metal or holding the new currency. Those who converted their metal into dollars before a reset occurs will be holding worthless paper.

Chris Marcus (Arcadia Economics) and I discuss several reasons why gold (and silver) is extraordinarily undervalued:

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A portion of the commentary above is from  the latest issue of the Mining Stock Journal. You can learn more about  this newsletter by following this link:  Mining Stock Journal subscription information

Note:  I do not receive any promotion or sponsor payments in any form from the mining stock companies I present in my newsletter. Furthermore, I invest in many of the ideas personally or in my fund.

The Financial System Was FUBAR Before The Virus Crisis

“If you infuse Keynes’ economic and monetary theories with LSD you end up with MMT (Mondern Monetary Theory)”

While the coronavirus to be sure is the “black swan” that pricked the stock bubble, market forces eventually would have accomplished the same result. The Fed started bailing out the banking system in September, printing half a trillion dollars to save the banks well before anyone had ever heard of coronavirus or Covid-19. It knew back in September that a massive credit problem was starting to bubble up.

The Prepared Mind invited myself and TFMetals’ Craig Hemke to discuss the Catch-22 global debt problem facilitated by the Central Banks, the eventual monetary system reset and, of course, gold and silver:

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You can learn more about  Investment Research Dynamics newsletters by following these links (note: a minimum subscription period beyond the 1st month is not required):  Short Seller’s Journal subscription information   –   Mining Stock Journal subscription information