Many may be wondering what has been happening to gold and gold stocks over the past few weeks after a strong rally to start the year. After watching central banks set a record for buying gold in 2022 it appears they are still at it in2023. This is made obvious by the BRICS, SCO and the EAEU all looking to abandon the US dollar in trades amongst themselves (around 60% of the world’s population) and are replacing their international reserves with gold. Of course, Russia, China, India, Turkey and Saudi Arabia are leading the way.
The way I see this is that this is a gift to anyone who would like to add more gold to their portfolios. Even more so for silver.
In listening to a podcast with Alasdair McCloud he stated that “open interest” in gold and silver were low. Open interest means the amount of bets placed on the price movement of gold and silver. It is important to understand that NO GOLD is present in these transactions. They are nothing more than bets on a future price. To determine which way to bet they use algorithms and charts as well as read headlines. There is NEVER any thought of VALUE which makes the whole “market” nothing but a gambling casino and pushes the price of the actual asset up and down in fiat dollar terms. What this means in English is that paper that has NO intrinsic value is determining the price of a REAL asset. Let that sink in. This is the exact opposite of the way a derivative is supposed to work where the derivative (an asset having no value on its own derives value from a tangible asset) has its price set by something real. I believe that with every fiat unit of currency produced the VALUE of hard assets (gold and silver included) rise. With the level of “printing” the VALUE of the gold and silver is off the charts- regardless of the price- which is likely a MAJOR opportunity for anyone paying attention- like the central banks.
Because there is “low interest” Alasdair opined that those in the casino may have an easy go of it to maneuver the price because there is less trading and more buys or sells can more easily move the numbers.
While this is happening most of the world is buying as much gold as they can get at these discounted prices. They are doing this because gold is an asset that has no counterparty risk. It is not reliant upon anyone’s promise to repay. Bonds are reliant on someone else’s promise to repay, stocks can be destroyed if a company defaults on its bonds (reneging on the promise to repay debt) and even a hard asset like real estate could get crushed in a debt implosion- which is almost inevitable if you look at the staggering amounts of debt that countries, cities, states, companies and individuals are all in- and all at RECORD LEVELS here in the USA.
I believe that the important thing to understand here is that those “in charge” are buying EVERYTHING in order to give the illusion of liquidity and solvency even as they raise rates and are destroying the economy right before our eyes. The Fed Presidents have made no bones about it- Many more Americans will have to lose their jobs before we are done. Nice plan. Destroy the economy and us and just MAYBE prices will come down. Don’t bet on that anytime soon.
Another important point is that when that final snowflake falls ant the avalanche occurs those manipulating the price of certain assets like gold and silver down will lose all of their power to suppress those prices. This is why I have written many times that all assets are mispriced exponentially and when they reset most will be stunned when the see the level of fraud that has taken place. Those assets being artificially propped up I believe could lose 90% of their value. Some more. Those assets being suppressed will likely soar like a beachball that has been held underwater and is released. The rise should be something to behold.
I know many will be asking “when?” If I could answer that we could all be billionaires but I am not on that email chain so I have to make the best calls I can at the time.
Personally, it is kind of like death and taxes. It is inevitable that the manipulation will end. It is inevitable that the fraud will be exposed. It is inevitable that assets propped up with fake money will collapse when the “money” is no longer trusted and people don’t want to hold it .It is also inevitable that when central banks and major banks feel they have enough gold and silver that the manipulation will likely be in play- but the other way. I believe that staggering gains await us in the near future. As far as taxes go- I can tell you exactly when they have to be paid but, just like with death- it’s coming for all of us but we don’t know when. When you are sick there are many signs if you are nearing the end. Just like now, the fiat (backed by nothing and creates NOTHING of value) is obviously sick and is showing signs of terminal illness. We are bombarded 24/7 with propaganda so we don’t see it clearly but those outside the US/Euro and Australian bubble see clearly that an alternative to the fiat currencies is needed NOW.
All the signs are there that we are entering a period of great change. All the talk of wars and civil unrest are all, I believe, tied to the end of the fiat currency system that has enriched a VERY few at the expense of all of us- and none more than the countries that produce what we use. The illusion of wealth will shortly be revealed. Real wealth is derived from producing more than you consume over time. The money “printers” have been skimming profits and keeping many nations down as they use them as their labor force and keep many in abject poverty as they become billionaires. Karma awaits!
Another lesson I hope we don’t learn too late is that we are all better off if we get along and trade with each other with goods and not bombs. The institutions that I mentioned above (BRICS< SCO< EAEU) they all seem to get it. The only ones who don’t get it are those that are used to getting their way and manipulating everyone to conform. The world- minus USA, Europe and Australia , are obviously moving in another direction that should lead to “money” actually backed by production. It should lead to a more stable currency and better trade terms and conditions for everyone.
Of course, this will be kept behind the curtain in the mainstream media and the financial game shows until its too late for most to do anything to protect themselves.
Be Prepared!
Any opinions are those of Mike Savage and not necessarily of those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. The information in this report does not purport to be a complete description of securities, markets or developments referred to in this material. The information has been obtained from sources deemed to be reliable but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct.
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