I am wondering if anyone is really understanding just how much money creation is actually taking place. Of course, what we know is scary enough. The Japanese are “printing and buying” virtually all assets and most central banks are ‘printing and buying” most assets- whether they admit it or not. In any event by buying bonds and rigging the rates lower they are bastardizing all prices anyway.

I wrote an article at the end of March where, in just 4 days $182.00 was “printed” for every ounce of silver in existence. At that time, the amount was $5124.00 for each ounce of silver. Today it is $5202.00 and the Fed is predicting $13,550.00 per ounce of silver in existence by 2025. Again, I will say it will likely be FAR higher. In addition, gold was $36,595.00 per ounce of gold at the end of March and is now $37,108 and rising daily. They were projecting just a few weeks ago that there would be $88,000.00 for each ounce of gold in 2025. A few weeks later and the projection is $96,659.00 for each ounce of gold in 2025. Again, this will prove to be far too low. Look next week!

If this isn’t enough to make people think that our “money” is being debased into oblivion I don’t know what would do it. I guess when a happy meal is over $100.00 people will be paying attention.

Having said that, I have also written MANY times about what we are NOT allowed to know- like the trillions being sent around the world to other central banks. Like the $140 TRILLION that is “missing” with over $94 TRILLION coming from the department of defense according to Dr. Mark Skidmore (Phd in economics at Michigan State U) and Catherine Austin-Fitts (former second in command at HUD) where trillions were also “missing”.

What would the impact be RIGHT NOW if that $140 trillion was added to the dollars to gold ratio right now? There are a reported 2.5 BILLION ounces of gold in the world. If that $140 Trillion was added to the numbers we have here there would be an additional $560,000.00 for each ounce of gold in the world. And gold is deemed “risky” by many? Yes. Even though the central banks have been buying in record amounts and list gold as a “riskless asset” on their balance sheets.

While the powers that be manipulate the price of metals lower (and buy it at the same time) main street is focused on stocks. Stock indexes have been hitting all-time highs along with margin debt. Currently, according to FINRA AND REPORTED BY Wolf Street margin debt has skyrocketed to heights NEVER seen before. This margin debt is more than double what it was in 2008. What is left out, however, is the leverage that DOES NOT show up in these numbers. I am talking about the dark pools where banks trade amongst themselves and have massive leverage that is mostly not reported or known. The Archegos blowup a few weeks ago highlighted the leverage that the banks were taking on. This allowed many stocks to rise to dizzying heights as the “money” flowed in only to see some major names crater by 50-70% in a matter of days when that same leverage that led to stellar gains on the way up collapsed on the way down. Buyer Beware.

As a matter of fact, according to Bank of America, more “money” has flowed into stock funds in the past 5 months than did in the last 12 YEARS. In the past 12 years $452 Billion went into stock funds while in the last 5 months over $569 Billion went in. “Investors” and I use that term lightly, are over-the-top bullish. This, at a time when you are grossly overpaying for most companies while our economy remains in freefall with no end in sight. The propaganda machine is running at full speed to promote the recovery story but the numbers don’t add up to a great recovery. About the only thing that appears to be happening is that the decline is decelerating but I see no real recovery. Over 17 million are still on unemployment. Another 540,000 people filed first-time unemployment claims last week and over 100 MILLION are long-term unemployed and not counted in the “official” numbers.

The decay of our economic system is being hidden by massive spending by governments, “printing” by central banks and manipulation of all prices to keep everyone as clueless as possible. It appears to be working.

Banks are reporting record deposits at the same time all this is going on. My opinion is that one of the greatest risks of our time is having “money” in the bank where you are an unsecured creditor of the bank (one of the last to get paid in a default) and where many banks are more like gambling casinos than the banks we remember from just a few decades ago.

I am not really worried about the “money” not being there- at least not as much as I was before all of this “printing” took place but I am EXTREMELY worried that the value of that “money” is being destroyed FAR faster than one in a million can detect. If the “printing” were to stop many of these banks could be insolvent in no time. If the “printing” continues- what is the value of something that can be conjured up out of nowhere, produces nothing (but interest payments to the conjurers) and is virtually UNLIMITED?

I believe it is time to purchase REAL STUFF. Things that cannot be keystroked into existence. Real assets provide the fodder we need to have a functioning society and economy. All else is smoke and mirrors. I believe that very shortly people will start to realize that inflation has been far higher than reported and I don’t believe we have seen anything yet.

The companies that have strong balance sheets and produce real assets are a good place to start along with the commodities that are necessary for our economy and society. Gold and silver miners also look to be an attractive space at this time.

Gold, silver and other metals also appear to be grossly undervalued to me and that is not even taking into account the “missing” money that may come to light in the future. Of course, by then it will be FAR too late to do anything about it.

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.

Commodities are generally considered speculative because of the significant potential for investment loss. Commodities are volatile investments and should only be a small part of a diversified portfolio. There may be sharp price fluctuations even during periods when prices are overall rising.

Precious Metals, including gold, are subject to special risks including but not limited to: price may be subject to wide fluctuation, the market is relatively limited, the sources are concentrated in countries that have the potential for instability and the market is unregulated.

Diversification does not ensure gains nor protect against loss. Companies mentioned are being provided for information purposes only and is not a complete description, nor is it a recommendation. Investing involves risk regardless of strategy.