As many people are aware, GOLD has been used as MONEY since biblical times. JP Morgan, as he was bailing out the entire United States Financial system, commented that “Gold is money- all else is credit”.
As such, gold has been used as a measuring stick to show how well or how poorly fiat currencies are holding their “value”.
Many economists will look at the price of gold-which has held its VALUE for thousands of years even though in our recent past the PRICE has been manipulated (mainly to keep it suppressed) 10s of thousands of times as reported in the case against JP Morgan, to determine the performance of paper (or mouse-clicked today) “money”.
Knowing this, those “in charge” have been using a few techniques to throw the public off and keep the illusion of a STRONG DOLLAR alive. They do this by, instead of using an ASSET like gold to measure worth, they compare the price of a dollar to other currencies. When you hear of DOLLAR STRENGTH it is only strong when measured against other fiat currencies which are falling in VALUE quicker than the dollar is.
Another trick is to conjure up paper gold contracts and sell those contracts (which are NOT gold but a pledge of gold- that by the way probably doesn’t even exist) so that the price can be brought down. It also causes the algorithms to sell and crash the price further.
Another way that many believe has been concocted to keep gold suppressed is Bitcoin and other cryptocurrencies. The idea here is that “money” that would have normally gone into gold and silver- and would have driven the price FAR higher- gets sidetracked into a momentum play. I believe this is true. It is astonishing that as soon as gold starts to shoot higher Bitcoin and others get a bid. I believe those “in charge” have thought this out a lot farther than many imagine.
You know my take on Bitcoin and other cryptos. I believe that they are NOT assets because they have NO UTILITY. The lights go out and they cease to exist. Bitcoin is a mathematical equation. If the powers that be outlaw buying and selling with it- what good is it? Anyone touting that central banks are going to use this crypto or that crypto have not been paying attention to the Bank of International Settlements, the IMF and all the major banks who are already using their OWN cryptos that they control. What makes ANYONE think they won’t make all forms of competition illegal when they spring their CBDCs on us? Then what?
Anyone wondering WHY they would do this needs to look no further than the Fed and their owners- the major banks wanting to keep the illusion of a strong dollar. In addition, these same banks and mostly all central banks-except the Fed are buying gold in record amounts. They certainly don’t mind the games being played as the western “investor” is sidetracked by bitcoin and AI investments while those “in the know”- central banks, major banks, hedge funds, etc. are amassing WEALTH with GOLD.
While the manipulation is still taking place the interventions are not having the results that we have been seeing in the past 10 years. It is most likely that with every beatdown in price another central bank is buying the dip. The beatdowns are visible daily on the Kitco charts as I have been writing about since 2011.
It is important to understand that it is not GOLD or silver- or any hard asset that changes its form. It is the currency that it is measured in that is LOSING purchasing power- almost always because too many currency units are conjured up out of nowhere.
The games can only be played for so long. My opinion is that we are near the end of this road and when the dam bursts- look out. I believe we are in the first inning of a MAJOR price increase that will see large spikes followed by shallow pullbacks and more large spikes. As the momentum grows, I believe the spikes will get much larger. As a currency dies it happens gradually over time and then all at once.
It is now reported that the USA is adding $1 TRILLION in debt every 3 months or so and that does NOT include wars and a LOT of other off-balance sheet spending. It is reported that our interest expense alone could hit $1.4 TRILLION in 2024. This appears to me to be the beginning of a debt-death spiral that will lead to a FAR weaker dollar and FAR higher prices for real goods.
To see what may lie ahead for us to buy gold in the future I am going to show you what has been happening to the price of gold in many major currencies. You will notice that those who have “printed” the most- PAY the most.
CURRENCY GOLD PRICE GOLD PRICE INCREASE % Currency
10/08/2023 04/08/2024 Change
US Dollar $ 1,860.00 $ 2,338.00 +25.7% $478.00
Canadian Dollar $ 2,550.00 $ 3,175.00 +24.5% $625.00
Euro 1,760.00 2,153.00 +22.32% 393.00
British Pound 1,510.00 1,848.00 +22.4% 338.00
Swiss Franc 1,695.00 2,116.00 +24.8% 421.00
Australian Dollar $2,900.00 $3,541.00 +22.1% $641.00
Brazilian Real 9,490.00 11,766.00 +24% 2276.00
Chinese Yuan 13,710.00 16,932.00 +23.5% 3222.00
Hong Kong Dollar $14,750.00 $18,316.00 +24.2% $3566.00
Mexican Peso 33,910.00 38,240.00 +12.8% 4330.00
- African Rand 35,700.00 43,575.00 +22.1% 7875.00
Russian Ruble 188,000.00 216,659.00 +15.24% 28,659.00
Japanese Yen 275,200.00 354,960.00 +29% 79,760.00
As you can clearly see, ALL fiat currencies are bleeding purchasing power. It appears to me that those who have “printed” the most are seeing the most debasement of their currencies.
The currency that has lost the most value vs. real money is the Japanese Yen. Next, our own US dollar. As the “printing” and debt accumulation continue unabated look for the USA to follow in the footsteps of Japan and all of the other countries who have made a mockery of free markets.
We always talk about how all currencies are falling- just at different rates. I believe this is a great illustration of this.
The best way to put it would be to say that those “in charge” can suspend reality for a while but eventually all of the fraud and manipulation will be reconciled-possibly over time or possibly in an instant.
As our economic condition continues to deteriorate with full time job losses skyrocketing and prices rising, look for more “printing” to hide the carnage. Look for more massaged numbers to keep people confused about our real situation. We are currently conjuring up cash from nowhere, pretending that there is real production where none exists and even resorting to “printing money” to pay expenses, retire current debt and pay interest. A lot of the maturing debt in 2024 will be at FAR higher interest rates and will cause even more “money” to be created from nowhere to stave off a collapse of our entire debt-based system.
Is it any wonder why the global south- including BRICS 10, SCO and most of the global south want to go back to an asset-backed system rather than a debt-based system?
The clock is ticking …
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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