We are living through epochal times. Right under our noses, without even most of us being aware of it, The Great Reset seems to be under way.
In the last few months, silver and gold have been competing with each other to reach new heights.
In normal times, an increase of hundred percent in one year would be considered a bubble, and one would expect that the prices would correct as sharply as they went up.
But these are not normal times. The price increases are a signal of something that is happening under our feet as we sleep.
When fiat currencies come to the end of their lives, this is what you can expect will happen. The dollar went off the gold standard in 1971, and no currency in the world today is backed by anything solid. Governments print money with abandon and strew it around like confetti. With no checks and balances, like say the need to have enough gold or silver to back up every note that is printed, what do you think will happen? Everyone knows the answer, but may not want to admit it even to themselves. Some truths are too scary to contemplate.
Why have central banks been loading up on gold in the last few years? Why were fresh issuances of Sovereign Gold Bonds stopped by the Indian government? Why is gold showing no signs of a pullback even after reaching lifetime highs?
Why is silver in a mad rush to outpace gold? Why was the price of silver kept suppressed by the big banks led by JP Morgan for the last forty years? Why did that same JP Morgan go from being hugely paper short to hugely physical long in the last few months?
Why are India, Russia and China discussing alternate settlement mechanisms to the US dollar?
If you connect the dots, you will conclude that the process of de-dollarisation is under way. The dollar is losing its value, all asset prices are going up as a consequence, precious metals are shooting up like they have been fed rocket fuel, gold and silver are on a tear, and between them, silver is making up for lost time with a vengeance.
Everyone will participate in what is coming. If you are prepared and take the necessary steps and take evasive action, you will gain; if you are not prepared and continue to believe in the conventional theories of "asset allocation" that has served you well for the last forty years, ignoring gold and silver, you will lose. You cannot remain unaffected by what is coming, you better decide which side you want to be on.
Buy gold and silver. If you want some more underlying fundamental reasons, here is the link to my blog post of 2nd December:
What if all these fears are unfounded, and nothing happens? What if gold and silver correct sharply ? Sure, that is possible, but ask yourself this: whatever seems to be happening now may be short lived, but how long before it actually happens? How long before the dollar, and all other fiat currencies collapse, and how long for gold to reach 20000 dollars an ounce ( it is at 4400 today) and silver ( at 69 today) to reach 500 dollars an ounce?
If your portfolio is overweight on debt, you may want to consider reallocating. This is a good time to be a borrower rather than a lender in the debt markets, and to invest that money in other assets, any assets. Currency is not an asset.
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